EDA approves tax credits for Garden State Film and Digital Media Jobs Act

The New Jersey Economic Development Authority approved new rules for the Garden State Film and Digital Media Jobs Act which would apply tax credits against the corporate business tax or gross income tax for digital media and film companies operating in New Jersey.

The tax credits would be applied beginning Fiscal Year 2019 until Fiscal Year 2023, and include a special focus on Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer and Salem counties.

Here are some of the incentives:

  • Tax credit worth 30 percent of production expenses if 60 percent of production, excluding post-production, are through vendors in New Jersey or if the qualified film production expenses in New Jersey exceed $1 million per production.
  • Credit can increase to 35 percent if in above listed southern New Jersey counties.
  • Reality shows qualify if production company owns or leases 20,000 square feet in an Urban Enterprise Zone or makes a $3 million investment in the facility after July 1, 2018.
  • Tax credit worth 20 percent of digital media production if at least $2 million of total production expense are incurred in New Jersey; at least 50 percent of qualified production expenses are wages and salaries for full-time employees.
  • Credit can increase to 25 percent if in above listed southern New Jersey counties.
  • Bonus credit of 2 percent of expenses if application includes a diversity plan to hire 15 percent diverse staff (minorities or women).

The total amount of film tax credits available under the program is $75 million per fiscal year, and $10 million per fiscal year for digital media credits from Fiscal Year 2019 to 2023. That means a total of $375 million and $50 million, respectively.

There will be application fees, issuance fees and transfer of credit fees associated with applications.

The applications will initially be reviewed by New Jersey Motion Picture and Television Commission.