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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
New Jersey offers a unique blend of urban and rural locations, all within close proximity. From the iconic skyline views of Jersey City to the scenic shores of Cape May, the state provides a versatile backdrop for any story.
And New Jersey's appeal extends beyond its picturesque landscapes and iconic urban backdrops. The state has a rich history in film and television production—it was in the Garden state where Thomas Edison first pioneered motion picture technology in 1893.
Recent enhancements to the New Jersey film tax incentives program continue to build upon New Jersey’s legacy as a film industry leader. Productions like Joker, West Side Story, and The Many Saints of Newark have all recently taken advantage of what the state has to offer through its New Jersey film incentives.
Recognizing the economic and cultural benefits of a thriving film industry, New Jersey reintroduced and expanded its New Jersey film tax incentives program in 2018. The goal was to attract more productions, create jobs, and stimulate local economies.
With the addition of the Studio Partners and Film-Lease Partners Programs, the state has solidified its commitment to becoming a premier filming destination by encouraging long-term investment in the state's production infrastructure.
At the heart of New Jersey film tax incentives is the Film and Digital Media Tax Credit Program, offering a fully transferable tax credit of 30% to 39% on qualified production expenses.
With transferable tax credits, states like New Jersey offset a production company's in-state tax liability by the amount of the film tax credit.
If the production company is not a business organized in New Jersey, and thus has no in-state tax liability, the credit can be sold to another company that does have New Jersey tax liability for a percentage of its value. In this way, the credit is transferable.
We will break down exactly how the 30% to 39% transferable New Jersey film tax credit is structured in just a moment, but first it’s worth emphasizing that the New Jersey film tax credit program is segmented into two main programs: a film tax credit program and a digital media film tax program. The two are similar but have slightly different requirements.
In order to qualify for the New Jersey film tax credit program, production companies must incur at least $1 million in qualified expenses or incur at least 60% of total film production expenses in-state.
In order to qualify for the New Jersey digital media tax credit, productions must incur at least $2 million of the total digital spend through authorized New Jersey vendors. This $2 million minimum spend excludes wage and salary payments to employees, and at least 50% of all qualified expenditures must be for payroll expenses paid to full-time workers in New Jersey.
Both the New Jersey film tax credit program and the New Jersey digital media tax credit have no project cap, which means there is no limit on the amount that can be awarded to a single project.
The programs also receive $100 million annually in funding. This is a rolling cap, so funds not dispersed in any given fiscal year roll over into the next fiscal year and can be allocated to qualifying projects.
A wide range of productions can benefit from the New Jersey film incentives, including:
To qualify, productions must meet the minimum spend requirement and ensure that a significant portion of their work is conducted within the state.
Recent updates to the New Jersey film tax credit program were signed into law by Governor Phil Murphy in July 2024, changing how reality and unscripted television projects can qualify for the program.
Under the recently revised New Jersey film tax credit requirements, unscripted television projects must shoot at least 60% of the show in New Jersey (this does not include post-production). They must also meet a minimum spend requirement of at least $1 million in qualified expenditures and have a minimum six-episode order on a linear broadcast network or streamer.
Qualified expenditures form the foundation of the New Jersey film tax credit, encompassing a wide range of production-related costs. From wages paid to cast and crew to physical production expenses like equipment rentals and location fees, these expenditures are essential for maximizing your eligibility for New Jersey film tax incentives.
The first, and often largest, portion of production expenditures include wages paid to your cast and crew.
Luckily, the New Jersey Motion Picture And Television Commission keeps things fairly simple. All payroll, including above-the-line and below-the-line New Jersey residents and non-residents, is eligible for a 35% base labor tax credit.
This 35% base tax credit applies to both the film tax credit program and the digital media tax credit.
For the purposes of the New Jersey film tax incentive, payroll expenditures have a compensation cap of $750,000 per individual or loan-out corporation, meaning that only the first $750,000 paid to any cast and crew qualify for the tax credit.
Wages and salary paid to Pennsylvania residents, who enjoy a state income tax reciprocity with New Jersey, also now qualify for the payroll tax credit.
Along with cast and crew wage expenses, New Jersey offers a base credit of 30% for physical production expenses under both the film tax credit and the digital media tax credit.
This means productions can get back 30% of every dollar spent on physical goods purchased in state from local vendors.
The New Jersey film tax incentives program also offers a few bonuses on qualified expenditures that can raise your total credit amount to 39%.
There is a 5% bonus for production expenses incurred outside the 30-mile radius of Columbus Circle in New York City, which is defined as the intersection of Eighth Avenue/Central Park West, Broadway, and West 59th Street/Central Park South.
Effectively, this bonus increases credit for physical production expenses incurred outside the radius from 30% to 35%.
In order to develop a more inclusive workforce, New Jersey also offers a 2% bonus to productions that meet certain diversity criteria.
To qualify for this bonus, productions must submit a diversity plan which outlines the production’s intent to hire minority persons and women to at least 25% of all production positions.
There is an additional 2% bonus (raising the total diversity bonus to 4%) for productions in which—in addition to the above—25% of the on screen performers are women and/or minority persons, and those women and minority persons who qualify for the bonus are both in unions and have been residents of New Jersey for at least 12 months prior to the start of production.
Through the digital media film tax credit, New Jersey offers an additional tax credit for qualified post-production expenses.
There is a 35% credit for expenses incurred for post-production services, including visual effects services, performed by a qualified independent post-production company.
If the post-production services are performed at a New Jersey film-lease production facility or are incurred by a New Jersey studio partner, the credit increases to 40%.
In order to qualify for the post production New Jersey film tax credit, projects must incur at least $500,000 in qualified post-production expenditures. A project does not need to be filmed in New Jersey to receive this credit, but post-production services must be performed in the state.
In order to qualify for New Jersey film tax credits, productions must meet a set of criteria outlined by the New Jersey Economic Development Authority (NJEDA).
In addition to the minimum spend requirements—$1 million in qualified expenses or 60% of total film production expenses in-state for the film and television program; $2 million in qualified expenses for the digital media program— productions must meet other requirements pertaining to loan-out withholding, diversity, and screen credit.
Loan-out companies are subject to the state’s maximum withholding, currently set at 6.37%. Loan-outs must also be registered and authorized to do business in the state of New Jersey.
While only productions applying for the diversity plan bonus must submit a diversity plan, all productions must make best efforts to hire diverse cast and crew, supporting the state's inclusion goals.
Finally, productions must include a state-approved logo or statement in the project’s credits.
For productions participating in the Studio Partners or Film-Lease Partners Programs, additional requirements include long-term facility commitments and higher minimum spend thresholds. You can learn more about the Studio Partners or Film-Lease Partners Programs with Wrapbook’s guide.
To begin applying for the New Jersey film tax incentives program, productions can register their projects with the NJEDA through their official website.
After registering, productions can begin submitting their application for a New Jersey film tax credit. Gather all necessary documents, including detailed budgets, shooting schedules, and proof of funding and fill out the application form, ensuring all information is accurate and comprehensive.
The NJEDA will review your application. If approved, you'll receive a tax credit certificate.
After production, submit your expenses for verification to a third party New Jersey-approved auditor to confirm the agreed upon procedures of the program are met. Once all documentation is approved, you can claim your New Jersey film tax credit and transfer it on the open market.
Adhering to all of New Jersey’s film tax credit guidelines is vital, so it’s important productions contact the NJEDA early in their planning process to understand all requirements.
New Jersey's combination of diverse locations, skilled professionals, and generous New Jersey film tax incentives makes it an ideal choice for your next production. By understanding and leveraging the New Jersey film tax credit program, you can significantly reduce your production costs while contributing to the growth of the state's film industry.
For a comprehensive comparison of film incentives across the United States, visit Wrapbook's Production Incentive Center. Start planning your New Jersey production today and unlock the financial benefits that await.
New Jersey, aptly known as the Garden State, is blossoming into a premier destination for filmmakers. With its diverse landscapes, strategic location near major metropolitan areas, and perhaps most appealing of all, the robust New Jersey film tax credit program, this state is a fertile ground for your next production.
In our comprehensive guide, we'll delve into the intricacies of the New Jersey film tax credit program—what it is, who can qualify, and how to apply—so you can maximize your production budget when shooting in New Jersey, the birthplace of filmmaking.
Before diving into the specifics of the New Jersey film tax credit, we invite you to explore Wrapbook's Production Incentive Center.
This invaluable resource offers detailed information on film incentives across the United States, making it easier for you to compare and choose the best location for your production. With tools like the State Incentive Map and the Incentive Comparison Tool, Wrapbook simplifies the complexities of navigating New Jersey film incentives and others nationwide.
