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Film and Digital Media Tax Credit Program

The New Jersey Film & Digital Media Tax Credit Program provides a credit against the corporation business tax and the gross income tax for certain expenses incurred for the production of certain films and digital media content in New Jersey.

The goal of the program is to incentivize production companies to film and create digital media content in New Jersey.


    Available Assistance:


    Film Tax Credit Program:

    Tax credit equal to 30 percent of qualified film production expenses, or 35 percent of qualified film production expenses incurred for services performed and tangible personal property purchased through vendors whose primary place of business is located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer or Salem County.

    Digital Media Tax Credit Program:

    Tax credit equal to 20 percent of qualified digital media production expenses, or 25 percent of qualified digital media production expenses incurred for services performed and tangible personal property purchased through vendors whose primary place of business is located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer or Salem County.
     

    Eligibility:


    Film Tax Credit Program:

    In order for a film project to be eligible for tax credits under the NJ Film Tax Credit Program, 60 percent of the film’s total production expenses (exclusive of post -production costs) must be incurred for services and goods purchased through vendors authorized to do business in New Jersey, or the qualified film production expenses (expenses incurred in New Jersey for the production of a film) must exceed $1 million per production.

    Once a film project is approved by the NJEDA Board for a tax credit, principal photography of the project must commence within 150 days of the date of approval.

    "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 facility.

    Digital Media Tax Credit Program:

    In order for a film project to be eligible for tax credits under the NJ Digital Media Tax Credit Program, at least $2 million of
    the total digital media production expenses must be incurred for services performed and goods purchased through vendors
    authorized to do business in New Jersey and at least 50 percent of the qualified digital media content production expenses
    must be for wages and salaries paid to full-time employees in New Jersey.

    Diversity Plan Bonus:

    Under both the Film and Digital Media Tax Credit Program, as authorized by the Act, the rules provide for a bonus for taxpayers applying for a credit against the corporate business tax in the amount of two percent of the qualified film or digital media expenses if the application is accompanied by a diversity plan outlining goals, which includes the intention to prioritize the hiring of minority persons and women in an amount of not less than 15% of the total hired, efforts to ensure equal employment opportunities, and
    specific goals, which may include advertising and recruitment actions, for hiring minority persons and women. The taxpayer must submit evidence that the applicant has met or made good-faith efforts in achieving those goals to receive the bonus.
     

    Application:

    Applications for the Film and Digital Media Tax Credit Programs will be available soon on this page.

    For more information about the programs, please contact the New Jersey Motion Picture and Television Commission at
    (973) 648-6279, or the New Jersey Economic Development Authority (NJEDA) at (609) 858-6767.

     

    Reference Information:

    Courtesy Copy of PL 2018 c.56 - Garden State Film and Digital Media Jobs Act
    Courtesy Copy of Current Film & Digital Media Tax Credit Program Rules