During last summer’s movie blockbuster season, New Jersey’s governor signed a piece of legislation designed to spur growth in the state’s own film industry by providing tax credits against a project’s digital media production expenses.
On Tuesday, the Economic Development Authority announced the New Jersey Digital Media Tax Credit Program is now accepting applications.
The program – created as part of the Garden State Film and Digital Media Jobs Act signed into law by Gov. Phil Murphy in July 2018 – aims to create new jobs by incentivizing production companies to create digital media content in the state.
According to NJEDA, under the program, tax credits are provided against a project’s qualified digital media production expenses.
To qualify a project must have total production expenses of at least $2 million incurred for services performed and goods purchased from vendors authorized to do business in the state. Additionally, 50 percent of the total production expenses must be for wages or salaries paid to full-time employees in New Jersey, NJEDA said.
“Under Gov. Murphy’s leadership, New Jersey is reclaiming its historic position as the State of Innovation, and a focused commitment to digital media is a critical component of that strategy,” said NJEDA Chief Executive Officer Tim Sullivan in a prepared statement. “The Digital Media Tax Credit program’s targeted investments in one of the region’s fastest-growing high-wage sectors is crucial to bringing new jobs and economic opportunities to New Jersey.”
“The program will ensure New Jersey residents will have an opportunity to participate in this rapidly growing sector,” Sullivan added.
The base amount of credits available under the program is 20 percent of qualified expenses, but that may be upped to 25 percent for goods and services purchased from vendors in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer or Salem counties.
Two percent bonus tax credits are also available for productions that submit a diversity plan for the hiring of women or minority persons
The incentive is capped at $10 million per state fiscal year – beginning with fiscal year 2019 and ending in fiscal year 2023 – for a total available pool of $50 million.
For more information, or to apply, visit: www.njeda.com/digitalmedia.