The Garden State is back in the film production game.
New Jersey Gov. Phil Murphy signed legislation last Tuesday authorizing a $425 million film and digital media tax credit program after state legislators adopted his recommended changes to extend the tax breaks to reality television shows, and to permit an additional tax incentive to encourage the hiring of women and minorities. The newly enacted tax incentive program will allocate up to $85 million in credits annually for the next five years, commencing immediately starting July 1, 2018.
The five-year program caps the number of available tax credits at $75 million per fiscal year for film productions and $10 million for digital-media projects.
“The film and digital media industry is poised to become a dynamic part of New Jersey’s economy, one that will create good-paying union jobs and countless residual benefits to the economy,” Murphy said.
Under the new law, film production companies are now eligible for business or gross income-tax credits equal to 30% of production expenses. Projects that are filmed in Mercer County, or one of the state’s seven southernmost counties will be eligible for credits equal to 35% of expenses.
Digital-media projects, such as animation and computer graphic productions, are eligible under the new law for tax credits equaling 20% of production expenses, or 25% if completed in one of the eight targeted counties.
As New Jersey’s largest film production studio, Parlay stands ready to guide you through the new production incentives. Give us a call if you’d like to know more!
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