EDA APPROVES $10.2 MILLION IN FINANCIAL ASSISTANCE TO 10 FILM PRODUCTION PROJECTS IN NEW JERSEY
TRENTON, N.J. (August 8, 2006) – To help spur film industry activity in the Garden State, the New Jersey Economic Development Authority (EDA) Board of Directors today approved ten film production projects to benefit from over $10.2 million in tax credits. Projects are approved in cooperation with the NJ Division of Taxation, following application review by the NJ Motion Picture & Television Commission.
“Filmmakers seeking a low-cost environment to produce their projects should look to New Jersey’s array of benefits and financing options,” said Caren S. Franzini, EDA Chief Executive Officer, noting that according to the Motion Picture & Television Commission, film production work in New Jersey contributed $85.5 million to our state’s economy in 2005. “In today’s competitive climate for film production, this new 20-percent tax credit puts New Jersey at the forefront of State’s competing for film projects that stimulate direct and indirect economic benefits.”
Under a new law enacted in early 2006, film production companies can receive a 20% tax credit for production costs on their NJ Corporate Business or Gross Income Taxes. The program is capped at $10 million annually. Projects receiving tax credit benefits are first reviewed by the Motion Picture& Film Commission, followed by a review by Division of Taxation and EDA to ensure eligibility requirements are met. To be eligible, 60-percent of the total production expenses, excluding post-production, must be spent in New Jersey, and principal photography must begin within 150 days of EDA Board approval. The eligible production expenses include wages and salaries, operations, photography, editing, rental facilities and equipment, and most other production costs incurred in New Jersey.
Film production projects approved by the EDA Board for FY2006 and FY2007 tax credits include:
(Note: All approved projects are for FY2006 tax benefits unless otherwise specified)
“With outstanding locations such as our beaches, mountains, urban centers and farmlands, along with our talent pool and our transportation network, New Jersey has proven to be a popular destination for producers,” said Franzini. “With the addition of these cost-saving initatives, New Jersey is becoming even more attractive to the film community.”
EDA not only assists film production by reducing cost through tax credits, it also increases borrowing opportunity through loan guarantees and other financing initiatives. Film production companies seeking more information about how EDA can financially assist projects in New Jersey should call 609-777-4898. Those seeking additional information on filming projects in New Jersey can call the New Jersey Motion Picture and Television Commission at 973-648-6279.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.