NJEDA Now Accepting Applications for Digital Media Tax Credit Program
TRENTON, N.J. (April 30, 2019) – Digital media production companies can now apply for tax credits through the New Jersey Digital Media Tax Credit Program, the New Jersey Economic Development Authority (NJEDA) announced today. The program is designed to spur economic activity and create new jobs by incentivizing production companies to create digital media content in New Jersey.
“Under Governor Murphy’s leadership, New Jersey is reclaiming its historic position as the State of Innovation, and a focused commitment to digital media is a critical component of that strategy. The Digital Media Tax Credit program’s targeted investments in one of the region’s fastest-growing high-wage sectors is crucial to bringing new jobs and economic opportunities to New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “The program will ensure New Jersey residents will have an opportunity to participate in this rapidly growing sector.”
Created as part of the “Garden State Film and Digital Media Jobs Act,” the Digital Media Tax Credit Program provides tax credits against a project’s qualified digital media production expenses. The base amount of tax credits available under the program is 20 percent of qualified expenses; however, the tax credit may be increased to 25 percent for goods and services purchased from vendors located in one of the following eight counties: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem.
For a project to be eligible for tax credits under the New Jersey Digital Media Tax Credit Program, at least $2 million of the total production expenses must be incurred for services performed and goods purchased through vendors authorized to do business in New Jersey, and 50 percent of the production expenses incurred in New Jersey must be for wages and salaries paid to full-time employees in New Jersey.
The digital media tax credit also offers an incentive to encourage diversity in hiring. A bonus tax credit of two percent of qualified digital media production expenses is available to projects that submit a diversity plan for the hiring of women or minority persons on the digital media production.
The Digital Media Tax Credit is capped at $10 million per State fiscal year beginning with SFY2019 and ending with SFY2023. The total pool of tax credits available over this five-year period is $50 million.
An application and a complete list of eligibility requirements can be found at www.njeda.com/digitalmedia.
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.