New Jersey Governor (Gov.) Phil Murphy signed legislation (S-4094/A-6070) that expands digital media production tax credits, bolstering the implementation of the New Jersey Film & Digital Media Tax Credit Program.
Under the legislation, the amount of the digital media content production portion of the tax credit program is increased while maintaining the overall cap on tax credits established in the Economic Recovery Act of 2020. Specifically, the legislation:
- increases the digital media content production tax credit to 35% of the qualified digital media content production expenses purchased through vendors located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem Counties, or 30% of all other qualified digital media content production expenses purchased within the state
- increases the cumulative annual limitation on digital media content production tax credits from $10 million to $30 million
- changes the treatment of excess credit applications in a fiscal year and allows reallocation among the categories of New Jersey studio partners, New Jersey film-lease partners, or taxpayers other than New Jersey studio partners and New Jersey film-lease partners
- allows an additional $100 million in tax credits for New Jersey film-lease partners from tax credits authorized under other incentive programs, starting financial year 2025.
Release, Office of New Jersey Governor, January 12, 2022
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