|Incentive Type||Transferable Non-Refundable Tax Credit|
|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.|
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|
$500 ($1 million tax credit or less)
$2,500 (tax credit in excess of $1 million)
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
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].