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Incentives

Production Incentives Database

Incentive Type Transferable Non-Refundable Tax Credit
Spend 30-37%
Above the Line Residents 35-37%
Above the Line Nonresidents 35-37%Restrictions apply, see Additional Information
Below the Line Residents 35-37%
Below the Line Nonresidents 35-37%
Bonus 5% of the qualified film production expenses incurred for services performed and tangible personal property purchased through vendors for use at a sound stage or other location that is located in the state within a 30- mile radius of the intersection of Eighth Ave/Central Park West, Broadway, and West 59th Street/Central Park South, New York, New York
Bonus 2% bonus is awarded if an overall goal of not less than 15 percent of hires be of minority persons and women. All diversity plans must identify goals for hiring both minority persons and women. All Diversity Plan Bonus applicants must include certain reporting and paperwork as well.
Project Criteria at least 60 percent of the total film production expenses must incur in NJ OR the qualified film production expenses of the taxpayer during the privilege period exceed $1,000,000 per production;

Production expenses include post-production costs, services performed, and goods purchased through NJ vendors(vendors authorized to do business in NJ)

The Economic Development Authority will confirm that companies have been making good-faith efforts toward diversity.
Loanout Registration Required Yes
Loanout Withholding Yes, 6.37%
Annual Funding Caps 100,000,000
Project Caps None
Minimum Spend 1,000,000
Sunset Date 06/30/2034
Audit Requirements
Production must submit a tax credit verification report prepared by an independent certified public accountant licensed in NJ
Getting Started
principal photography of the film commences within 180 days from the date of the original application for the tax credit.

Application Fee:
$500 ($1 million tax credit or less)
$2,500 (tax credit in excess of $1 million)
Screen Credit Required
Yes
Company Registration
Yes
Sales Use Tax Relief
Yes
Hotel Occupancy Tax Relief
No
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Once the Audit is complete, the authority and the director of the Film office shall review the findings of the independent certified public accountant's compliance audit, and shall make a determination as to the qualified film production expenses or the qualified digital media content production expenses of the Production. The determination shall be provided in writing to the production, and a copy of the written determination shall be included in the filing of a return that includes a claim for a tax credit allowed pursuant to this section

Issuance Fee: 0.5% of tax credit amount (payable prior to receipt of the tax credit)

Transfer Fee: $1,000

Tax Credit Carry forward of 7 years
Additional Information
Digital Media Content may qualify for 20-25% based on a minimum spend of $2M
and at least 50 percent of the qualified digital media content production expenses of the taxpayer are for wages and salaries paid to full-time or full-time equivalent employees in New Jersey

Compensation Cap of $500,000K on individuals in key positions including but not limited to writers, producers, directors, and talent. The Comp details are for (1) a highly compensated individual (directly or indirectly through a loan out company) for costs for a story, script, or scenario used in the production of the film or (2) wages or salaries or other compensation for writers, directors, including music directors, producers, and performers, other than background actors with no scripted lines.

"Reality shows", which are otherwise ineligible, may be eligible for the Film Tax Credit Program if the production company of the reality show owns, leases, or otherwise occupies a production facility of at least 20,000 square feet in an Urban Enterprise Zone for at least two years, and, after July 1, 2018, makes a capital investment of at least $3 million in that facilit.

In order to qualify, a game show, award show, or other gala event must be filmed and produced at a nonprofit arts and cultural venue receiving State funding.

Tax Credit Carry forward of 7 years

“Filmed in New Jersey” or “Produced in New Jersey” statement 1, or an appropriate logo approved by the Commission,1 in the end credits of the film

New Jersey Studio Partners Credit- $100 million for New Jersey film partners & $100 million for New Jersey film-lease partners beginning fiscal year 2021
New Jersey film partner- film production company that made a commitment to produce films in NJand has developed, purchased, or executed a 10-year contract to lease a production facility of at least 250,000 sqf as a “transformative project”

New Jersey Studio partners perks:
Allows compensation for writers, directors, including music directors, producers, and performers to constitute qualified film production expenditures up to:
$15 million in the aggregate when production incurs more than $15 million, but less than $50 million in qualified production expenses;
$25 million in the aggregate when production incurs $50 million or more, but less than $100 million in qualified production expenses;
$40 million in the aggregate when production incurs $100 million or more, but less than $150 million in qualified production expenses; and,
$60 million in the aggregate when production incurs $150 million or more in qualified production expenses; and,

State only allows for 5 film partners at a time.

New Jersey film-lease partner-Taxpayer that has made a commitment to lease or acquire a New Jersey production facility with an aggregate square footage of at least 50,000 square feet for a period of 5 or more successive years & agrees to spend an annual average of $50 million in qualified production expenditures over at least 5 but not to exceed 10 years; and,

Sunset for Film partners and Lease partners- 2035

Last updated: 08/04/2021

Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at [email protected].