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In the state’s continued efforts to expand its film industry, the New Jersey Economic Development Authority announced April 2 it reopened applications for production studios seeking a designation that offers access to additional tax credits. 

The Studio Partners and Film-Lease Partners designations were created by the Economic Recovery Act of 2020 as a complement to the state’s Film and Digital Media Tax Credit Program. The designations aim to encourage the development of large, long-term studio facilities. 

Projects in both designations will have an allocation of $150 million per fiscal year. 

Studio Partner designation: 

• This designation allows the approved film company to capture additional above-the-line salaries and wages as part of its tax credit award calculation, as well as an increased award percentage. 
• To be eligible, the applicant must be a production company that has site control of a facility that is at least 250,000 square feet for at least 10 years. 
• With a cap of three designations, NJEDA will approve up to two more. In December 2022, Lionsgate Film Inc. was awarded the first Studio Partner designation after committing to 253,000 square feet at Great Point Studios in Newark. The facility is expected to be operational in 2025, according to NJEDA. 

Film-Lease Partner Facility Designation

• To be eligible, the applicant must own, lease or operate an at least 250,000-square-foot production facility for five years or more.  
• This designation allows for future tenants of a designated Film-lease Partner Facility to receive increased tax credit awards for filming in the state. To qualify, the production company must occupy space at a designated film-lease partner facility, film at least 50% of the total project shoot days in New Jersey and at least 50% of the New Jersey shoot days at the designated facility. 

Both designations also require at least preliminary site plan approval, an executed redevelopment agreement, or an adopted redevelopment plan for the facility’s construction. Following approval, the site must be able to provide temporary or permeant certificate of occupancy for the facility within 36 months. 

To apply, or for more eligibility and program details, click here. In the drop-down menus, select “Film Tax Credit Program” and then “Studio Partners, Film-Lease Production Facilities and Film-lease Production Companies.” 

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