Is New Jersey Reviving the Film Tax Credit?

On April 12, 2018, the New Jersey Senate passed NJ S122, which would restore the film tax credit program in the state of New Jersey. Under the proposed program, qualified productions would receive a tax credit in an amount equal to 30% of qualified expenditures provided that at least 60% of the total film production costs (exclusive of post-production) were incurred for services performed and goods purchased through vendors authorized to do business in New Jersey, or the production incurred a minimum of $1 million on qualified production costs during the privilege period. 

Other program requirements include commencing principal photography within the earlier of 180 days from the original application or 150 days from the application’s approval date, certain state marketing requirements, verification by an independent CPA, and withholding on loan-outs at a rate of 6.37%. The tax credit for certain counties within New Jersey would increase to 35%. 

The program—which would take effect July 1, 2018, and has an annual cap of $75 million—is currently awaiting the Governor’s approval.

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

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