The New Jersey Film Tax Credit Is Back!
On July 3, 2018, Governor Phil Murphy signed into law NJ S122, which restores the film tax credit program in the state of New Jersey. Under this program, qualified productions can 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 of 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 increases to 35%, and applicants can earn an additional 2% of qualified costs with an approved diversity plan.
The NJ film tax credit program is effective as of July 1, 2018, and has an annual cap of $75 million.