NJ FILM & DIGITAL MEDIA TAX CREDIT PROGRAM- ERA UPDATE
The New Jersey Film and Digital Media Tax Credit Program provides a transferable credit against the corporation business tax and the gross income tax for qualified expenses incurred for the production of certain film and digital media content in New Jersey.
ELIGIBILITY
The eligibility requirements for film and digital media projects seeking tax credits through the Film and Digital Media Tax Credit Program are different. A film project must:
- Incur at least 60 percent of total film production expenses for services performed and goods purchased through authorized vendors in New Jersey.
- Incur at least $1 million in qualified production expenses for services performed and goods purchased through authorized venders in New Jersey.
- Begin photography within 180 days of the date the application is submitted.
- Include “Filmed in New Jersey” or “Produced in New Jersey” statement or other logo approved by the Motion Picture & Television Commission.
A digital media project must:
- Incur at least $2 million of the total digital media production expenses for services performed and goods purchased through authorized vendors in New Jersey.
- Incur at least 50 percent of the qualified digital media production expenses for wages and salaries paid to full-time employees in New Jersey.
AWARD SIZE
Film projects are eligible to receive tax credits of 30 percent of qualified production expenses up to $100 million per year. An additional five percent bonus is available for expenses incurred through vendors whose primary place of business is located in a targeted county and a two percent bonus is available for projects that submit a qualifying Diversity Plan.
Digital Media projects are eligible to receive tax credits of 20 percent of qualified production expenses up to a cap of $10 million per year. An additional five percent bonus is available for expenses incurred through vendors whose primary place of business is located in a targeted county and a two percent bonus is available for projects that submit a qualifying Diversity Plan.