New Jersey Increases Annual Cap on Film Tax Credit

January 21, 2020

By Blair Robbins

On January 21, 2020, NJ Governor Phil Murphy signed into law A5580, expanding the state’s film tax credit. New Jersey revived its film tax credit program back on July 1, 2018, which has since been tremendously popular with film productions. The program provides for an incentive equal to 30% of the qualified production expenses with the ability to recoup an additional 5% for qualified expenses incurred in certain New Jersey counties. Applicants can receive another 2% with the approval of a diversity plan outlining specific goals, which may include advertising and recruitment actions, or the hiring of minorities or women.   

The combined potential 37% tax credit—along with New Jersey’s diverse shooting locations, talent pool and proximity to major U.S. cities—has created significant demand for the program. 

Recognizing this, and the opportunity it creates for the state, the amended statute not only increases the cap from $75 million to $100 million annually, but also extends the sunset date of the program five years until July 2028.

An additional benefit of the revised statute is that it allows for the carryover of any excess amount of the annual allotment to the subsequent fiscal year, provided the carryover amount does not exceed $50 million. With such a high level of demand for this New Jersey incentive, infusing additional monies into the program should hopefully allow the state to continue to attract film productions for years to come.

About Blair Robbins

Blair Robbins, CPA, EisnerAmper Partner also leads the firm's Film Production Incentives Practice.