Are you a filmmaker looking for a state that offers a variety of financial incentives? Look no further than New Jersey! From tax credits to diversity bonuses, New Jersey provides a number of opportunities to help you save money on your film production expenses.
New Jersey’s 20% Tax Credit Program for Filmmakers is available to production companies that meet specific criteria. This tax credit is equal to 20% of qualified production expenses and can be used for the following:
- At least 60% of total project expenses (excluding post-production costs) must be incurred for goods used or consumed and services performed in New Jersey.
- Principal photography of a project must begin within 150 days after the approval of the credit application.
The Edison Innovation Digital Media Tax Credit Program is another financial incentive offered by New Jersey. This program provides a 20% corporation business tax credit for qualified expenses incurred by New Jersey technology companies involved in the production of digital media content.
Certain tangible property used directly and primarily in the production of films and television programs is exempt from New Jersey’s 7% sales tax. This includes the purchase of replacement parts for machinery, tools, and other supplies, the purchase of lumber and hardware to build sets, the rental of picture cars, the purchase or rental of other types of props, and costs related to the repair of camera and lighting equipment.
The New Jersey Film & Digital Media Tax Credit Program offers a transferable credit against the corporation business tax and the gross income tax for certain expenses incurred for the production of certain films and digital media content in New Jersey. The goal of this program is to incentivize production companies to film and create digital media content in New Jersey.
In addition to these incentives, New Jersey offers a diversity bonus of 2% or 4% to productions that meet certain diversity criteria. This initiative helps ensure that opportunities are available to qualified New Jersey residents of all backgrounds.
Opportunity Zones in New Jersey are an economic development tool that allows people to invest in distressed areas in the United States. Their purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors. Set To Go Studio fits in the opportunity zone.
If you are a film production facility seeking a designation that will facilitate your access to a pool of tax credits designed to encourage the development of large, long-term film production facilities in the state, then the Studio Partners and Film-Lease Partners Designation might be for you. The New Jersey Economic Development Authority (NJEDA) has opened applications for this designation, which is part of the New Jersey Film and Digital Media Tax Credit Program.
The Studio Partner designation allows a production company to capture additional above-the-line salaries and wages as part of its tax credit award calculation. Film-lease Partners must be production companies that have at least a Letter of Intent or other site control documentation for a production facility of at least 50,000 square feet for a term of at least five years. Additionally, the applicant shall commit to spending, on an annual average basis, $50 million in qualified film production expenses over the applicant’s commitment period.
Applying for these incentives can be daunting, but luckily, the New Jersey Film Commission is available to help you navigate the process. Click here to go to their website or reach out to their Executive Director, Steven Gorelick.
Steven Gorelick
Executive Director
NJ Motion Picture and Television Commission
153 Halsey Street, 5th Floor
P.O. Box 47023
Newark, NJ 07101
Email: njfilm@sos.nj.gov
Phone: 973-648-6279
Fax: 973-648-7350