“Full Time or Full Time Equivalent”: “Full-time or full-time equivalent employee” means an individual employed by the taxpayer for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted
by custom or practice as full-time or full-time equivalent employment, whose wages and salaries and other compensation are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or whose wages and salaries
and other compensation are not subject to tax under the Act due to a reciprocity agreement with another state. It also includes partners working at least 35 hours a week whose distributive share is subject to estimated taxes. It does not include independent
contractors.
“Incurred in New Jersey”: A service is performed in New Jersey to the extent that the individual performing the service is physically located in New Jersey while performing it. Rented tangible property is considered used or consumed in
New Jersey to the extent it is located in New Jersey and rented from a vendor authorized to do business in New Jersey.
“Independent Contractor”: An individual treated as an independent contractor for Federal and State purposes who is contracted by the approved applicant for services used directly in a production.
“Loan Out Company”: A personal service corporation or entity contracted by the approved applicant to provide individual personnel for services used directly in a production. Does not include companies providing goods or ancillary services.
The applicant must withhold 6.37% from all payments made to independent contractors and loan out companies. All loan out companies must be authorized to do business in NJ.
“New Jersey Film-Lease Partner Facility”: "New Jersey film-lease partner facility" or "film-lease partner facility" means one of the following for which the owner, developer, or tenant has made the commitment to build, lease, or operate
for a period of at least five successive years beginning with the later of the date of Authority approval or the issuance of the temporary certificate(s) of occupancy:
- A production facility;
- A production facility built, leased, or operated by a production company designated as a studio partner, which the studio partner no longer occupies; or
- A portion of a production facility owned by a studio partner that is in excess of the space being utilized by the studio partner; provided that the space utilized by the studio partner and by the film-lease partner facility both exceed{s} the minimum
size for a studio partner and film-lease partner facility, respectively.
“New Jersey Film Lease Post-Production Company”: A qualified post-production company that:
(a) Has a material operational role in production, leases space in a film-lease partner facility, and meets statutory requirements.
(b) If the facility has no certificate of occupancy, the company must have a lease:
- For at least three years;
- Including at least 36,000 sq. ft.;
- That cannot be subleased to an entity not meeting the definition.
“New Jersey Film Lease Post-Production Company Tenant”: The film-lease post-production company that is party to the lease with the owner or developer.
“Qualified Digital Media Production Expenses”: Expenses incurred in New Jersey for digital media content production, including wages, software, hardware, editing, sound design, visual effects, animation, color grading, and mastering. Payments
to loan-out companies or independent contractors qualify only if required NJ withholding is completed. Certain marketing, website-related, and unrelated costs are excluded.
All qualified expenses must be incurred through a vendor authorized to do business in NJ.
“Qualified Post-Production Company”: An entity engaged in post-production activities, including visual effects, that incurs post-production costs on qualifying films.
“Qualified Wage and Salary Payments”: Wage, salary, or other compensation incurred by the approved applicant that qualifies as film or digital media production expenses.
“Total Digital Media Content Production Expenses”: Costs for services and property used in producing digital media content. Does not include intangible personal expenses incurred after Feb 26, 2024.
“Vendor Authorized to do Business in NJ”: A vendor that has filed the required documents with the NJ Department of the Treasury to legally conduct business in the State.
