New Jersey offers a transferable tax credit, for expenses incurred in NJ, at varying rates based on the applicant entities status with NJEDA. Studio partners and film-lease production companies can earn 40% of qualified wages up-to $500K/person & non-payroll spend incurred outside of the 30-mile Columbus circle radius and 35% on non-payroll spend within the 30-mile zone.
Non-studio partners/non-film-lease production companies can earn 35% of qualified wages up-to $750K/person & non-payroll spend incurred outside of the 30-mile Columbus circle radius and 30% on non-payroll spend within the 30-mile zone. Additional credits are available for diversity plan & implementation.
Loanouts qualify at 35% and must be authorized to do business in NJ. 6.37% withholding is required on all payments to loanouts, independent contractors, & homeowners (for location rentals). Qualified vendors must be registered to do business in New Jersey, have a NJ tax ID number, and a copy of the vendors Business Registration Certificate (BRC) must be on file. Projects must be at least 22 minutes in length.
There is a separate 30-44% digital media credit available for postproduction projects that incur at least $500k in qualified postproduction expenses in NJ; filming does not need to occur in NJ. Other non-postproduction digital media projects can qualify for this credit (additional requirements).
Incentive details
Type
Transferable tax credit
Rate
40% of qualified wages/salaries & non-payroll spend; 35% on nonpayroll spend within 30-mile radius of Columbus circle. 35% (base); 30% for expenses incurred within 30-mile radius of Columbus circle. $50M or more in qualified film production expenses, can include up to $60M in ATLl wage and salary expenses as qualified per project.
Uplift(s)
2% (for submitting a diversity plan to employ minority persons and women in at least 25% of all production positions) or 4% (in addition to submitting a diversity plan, if 25% of on-screen performers are women and/or minority persons who are members of unions and have been residents of NJ for at least 12 months prior to the start
Annual Cap
$150M film-lease production companies: that incurs less than $50M in qualified film production expenses can include up to $15M in ATL wage and salary expenses as qualified per project. $50M or more in qualified film production expenses can include up to $60M in ATL wage and salary expenses as qualified per project. $100M - $50M or more in qualified film production expenses can include up to $60M in ATL wage and salary expenses as qualified per project.
Project Cap
None
Compensation Cap
$500K on highly compensated individuals for costs of story, script, or scenario used in the production of a film; and wages/compensation paid to writers, directors, producers, & performers. Studio partners that incur: less than $25M qualified film production expenses, they can include up to $18 million in ATL wage and salary expenses as qualified/ project; $25M or more in qualified film production expenses, they can include up to $72M in ATL wage and salary expenses as qualified/project. Film-lease production companies: that incur less than $50M in qualified film production expenses can include up to $15M in ATL wage and salary expenses as qualified/project; $50M or more in qualified film production expenses can include up to $60M in ATL wage and salary expenses as qualified/project; $750K on highly compensated individuals for costs of story, script, or scenario used in the production of a film; and wages/compensation paid to writers, directors, producers, & performers
Eligible Expenses
Expenses incurred in New Jersey and labor performed in state
Additional Info
A studio partner is a NJEDA-designated production company that has made a commitment to produce films or commercial audiovisual products in NJ and has developed, purchased, or executed a 10 year contract to lease a production facility of 250K square feet or more (as of May 2025, Netflix and Lionsgate studios are approved as studio partners). a film-lease production company is a production company that has made a commitment to lease or occupy production space in a NJ film-lease partner facility and meets one of two criteria:
1) at least 50% of total principal photography shoot days occur in NJ at a film-lease partner facility; or
2) the qualified film production expenses for all goods and services used or consumed at the NJ film-lease partner facility and payments made for the use of the NJ film-lease partner facility must be at least 33% of the total qualified film expenses of the project. a film-lease partner facility can be one of the following:
1) a production facility in NJ whose owner or developer has made the commitment to build, lease, or operate a production facility of 250K square feet or more for 5 or more successive years, or
2) a production facility built, leased, or operated by a production company designated as a NJ studio partner and which the NJ studio partner no longer occupies, or
3) a portion of a production facility owned by a NJ studio partner that is in excess of the space being used by the studio partner, provided the spaces utilized and unutilized by the NJ studio partner both exceed 250K square feet (as of May 2025, 1888 studios is approved as a film-lease partner facility).
Requirements
Minimum Spend
$1M in qualified film production expenses or 60% of film's total production expenses (excluding postproduction) must be incurred through vendors authorized to do business in NJ
Local Hire
Requirement
No
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
0.0637
Application Timing
First come, first served basis. Pre-approval is required. must submit a completed budget template and tax clearance certificate as part of application. Principal photography must begin within 180 days of application date or 150 days of NJEDA approval date.
Audit
CPA audit required & must be submitted within 12 months of final production expense
Principal photography must begin within 180 days of application date or 150 days of NJEDA approval date. CPA audit report is due within 12 months from the last film production expense is incurred. there non-refundable fee required for: application, approval, issuance, and credit transfer
