New Jersey

Apply to the NJEDA; pay a nonrefundable application fee of $500 for projects with an estimated tax credit of $1 million or less ($2,500 if the estimated credit is more than $1 million); BEGIN principal photography within 180 days from the date of the original credit application; incur at least 60% of the total film production expenses (exclusive of postproduction costs) for services performed and goods purchased through vendors authorized to do business in NJ or spend more than $1 million per production in qualified production expenditures incurred through vendors fully authorized to do business in NJ within a single privilege period; submit an Agreed Upon Procedures report, prepared by an independent certified public accountant licensed in New Jersey, no later than 12 months from the date the last total film production expense was incurred; and pay the following nonrefundable fees: 1) budget review reimbursement, 2) issuance fee equal to 0.5% of the tax credit amount (payable prior to receipt of the tax credit), 3) transfer fee of $1,000 for each transfer of the credit. Loan out companies must register to do business with the Secretary of State and Taxation. Vendor registration evidenced by a Business Registration Certificate from https://www1.state.nj.us/TYTR_BRC/jsp/BRCLoginJsp.jsp.

Qualified costs include expenses “incurred in NJ”, as defined. Qualified costs for salaries and wages, including payments to each loan out company are limited to the first $500,000 paid to each resident and nonresident. Payments to loan out companies and independent contractors are subject to 6.37% state withholding. Payments to homeowners for the use of a personal residence can qualify if the production withholds 6.37% from the payment and issues Form 1099.

This program is administered on a first-come, first-served basis, based on the date/time a fully completed application is received. New Jersey provides a transferable tax credit equal to 35% of qualified cast and crew salaries, (30% of qualified purchases, rentals, and services used within a 30-mile radius of Columbus Circle), and 35% of qualified purchases, rentals, and services used outside the 30-mile radius. All qualified wages, salaries, or payments made to loan out companies earn 35% no matter where the services are provided in New Jersey. Reality shows may qualify if they meet additional requirements. NJ studio or film-lease production companies earn 40% of qualified wages and salaries and 35% on nonpayroll spend within the 30-mile zone and 40% on nonpayroll spend outside the 30-mile zone. Film-lease production companies are productions who lease space at designated film-lease production facilities, and who film 50% of the shoot days of the project in NJ and 50% of the NJ days at the designated facility. Digital media projects earn 30%–35% and have different requirements.