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Film Tax Credit Film-Lease Production Company Program

 

New Jersey Economic Development Authority:
Your Resource for Economic Opportunity

Welcome to EDA’s online application for financial assistance. We look forward to helping you as you grow your business in New Jersey!

GENERAL APPLICATION INFORMATION
Before you get started, there are a few things you should be aware of to make the application process as simple as possible.
  • In order to fully complete the online application, you must have consulted with an EDA Program Analyst or Officer. Your Officer can guide you through the application process and can answer any questions you may have.
  • If you have not consulted with a Business Development Officer, please call EDA Customer Care at (844) 965-1125 or email the Film Tax Credit Team at .
  • The estimated time required to complete this application is about 40 minutes.
  • Applications will lock once submitted through the portal and they cannot be updated. Please check with your Officer to make sure all information is correct before submitting.
  • Questions are tailored to your project/business.  This allows us to ask relevant questions about your project/business.  Please have as much information as possible with you as you complete the application, including:
    • For Privately Held Corporations:  Name, address,, date of birth, position, citizenship information and percent ownership for all officers and directors. 
    • For Nonprofit Organizations:  Name, address, , date of birth, position and citizenship information for all officers and trustees.  You will also need to provide a copy of your 501(c) (3) determination letter
    • Your organization’s Federal Employers Identification Number (FEIN) and NAICS code.
    • Specific project information including, budget, schedule, locations, cast & crew, synopsis, etc. See the documentation  checklist  for a complete list.
    • Your Business Development Officer will be able to provide you with more specific details on the information required for you to complete the application.

APPLICATIONS ARE NOT CONSIDERED TO BE COMPLETELY SUBMITTED UNTIL THE AUTHORITY DETERMINES THAT ALL REQUIRED INFORMATION AND DOCUMENTATION HAS BEEN RECIEVED. ONCE AN APPLICATION HAS BEEN SUMBITED THE PRODUCTION HAS 180 DAYS TO BEGIN PRINCIPAL PHOTOGRAPHY.

FILM-LEASE PRODUCTION COMPANY FILM TAX CREDIT APPLICATION INFORMATION
This is an application for a transferable tax credit against the corporation business tax and the gross income tax for qualified expenses incurred for the production of certain film and digital media content in New Jersey. The goal of the program is to incentivize production companies to film and create digital media content in New Jersey.
For information specific to the Film Tax Credit program, please visit our website at  www.njeda.gov/film  and click “Film and Digital Media Tax Credit Program” on the list of the NJEDA’s Financing and Incentive programs. On the right side of our webpage, you can find a link to the Current Program Rules, Statute, and Frequently Asked Questions about our program. Under the general dropdown for the Film Tax Credit program, you can find information about the application process and required documentation, eligibility requirements, fees related to the program, diversity tax credit, and more. There is a separate FAQ for taxation as well.

Required documentation includes : an application fee, a tax clearance certificate, a detailed budget,, an excess above the line benefit breakdown, a detailed project synopsis, a timeline and proposed shooting schedule (one-liner), resumes or biographies for major cast and crew, an affirmative action/prevailing wage form, a diversity plan and diversity tracking form, a NJ location list, an operating agreement / bylaw form, a legal certification, and proof of occupancy at a film-lease partner facility OR if there is no TCO, proof of 3-year commitment to occupy at least 36,000 sq. ft of the FLPF

Please review the application checklist available on the film page ( www.njeda.gov/film)
For the full New Jersey Motion Picture and Film Commission website, please visit  NJ Motion Picture & Television Commission .

Eligibility Requirements :

In order for a film project to be eligible for Film-Lease Production Company tax credits under the NJ Film Tax Credit Program, the film project must:


 
  • Be produced by a Film-Lease Production Company or produced at a Film-Lease Partner FacilityBe a feature film, a television series, or a television show of 22 minutes or more in length, intended for a national audience, or a television series or a television show of 22 minutes or more in length intended for a national or regional audience, including, but not limited to, a game show, award show, or other gala event filmed and produced at a nonprofit arts and cultural venue receiving State funding. Productions featuring news, current events, weather, and market reports or public programming, sports event, a production that solicits funds, a production containing obscene material as defined under N.J.S.2C:34-2 and N.J.S.2C:34-3, or a production primarily for private, industrial, corporate, or institutional purposes are not eligible for film tax credits. Reality Shows are ineligible unless the production has obtained a six-episode order from, and is commissioned and scheduled to premiere on, a major linear network or streaming service. Meet one of the following expense eligibility thresholds:
    • Meet one of the following expense eligibility thresholds:
      • If the FLPF HAS a Temporary or Final Certificate of Occupancy, the project must meet one of the following critera:
        • The film production company shoots at least 50 percent of the total principal photography shoot days of the project within New Jersey at the New Jersey film-lease partner facility; or
        • The qualified film production expenses of the project for all services performed and goods used or consumed at the New Jersey film-lease partner facility and payments made for the use of the New Jersey film-lease partner facility equal or exceed 33 percent of the total qualified film production expenses of the project.
      • If the FLPF DOES NOT HAVE a Temporary or Final Certificate of occupancy:
        • The film production company shall have entered a lease or sublease with the owner or developer of a New Jersey film-lease partner facility, which lease, or sublease is for not less than three years of occupancy of the New Jersey film-lease partner facility and includes at least 36,000 square feet of soundstage space.
        • The film production company shall have executed a contract with the owner or developer of the New Jersey film-lease partner facility to provide production services for films produced by the film production company in New Jersey prior to the New Jersey film-lease partner facility’s receipt of a temporary or final certificate of occupancy.
    • End credits must include “Filmed in New Jersey” statement or logo.
    • Principal photography of the project must commence within 180 days of application.
“Reality shows”, which are otherwise ineligible, may be eligible for the Film Tax Credit Program if at least 60 percent of the total film production expenses (exclusive of post-production costs) are incurred for services and good purchased through vendors authorized to do business in New Jersey,  the qualified film production expenses for the show exceed $1 million per production, and the show has obtained a minimum six-episode order from, and is commissioned and scheduled to premiere on, a major linear network or streaming service.

Payment made to a loan out company or to an independent contractor shall not be deemed a "qualified digital media content production expense" unless the payment is made in connection with a trade, profession, or occupation carried on in this State or for the rendition of personal services performed in this State and the taxpayer has made the withholding required. The applicant must withhold 6.37% from all payments made to independent contractors and loan out companies. All loan out companies must be fully authorized to do business in NJ.
The following tables show the application fees for each project:
 
Tier of Project Qualified Spend
Micro / Indie $0 - $999,999
Small $1M - $5,999,999
Medium $6M - $14,999,999
Large $15M - $29,999,999
Mega $30M +
 
Tier Application Fee Approval Fee Issuance Fee Credit Transfer
Fee (per transfer)
Micro / Indie $100 $100 $100 $1,000
Small $250 $500 $500 $5,000
Medium $2,000 $5,000 $5,000 $5,000
Large $5,000 $12,000 $12,000 $5,000
Mega $10,000 $25,000 $25,000 $5,000

Application Fees are non-refundable and due at application submission.

Approval Fees are non-refundable (unless the project is declined) and due prior to project approval.

Issuance Fees are non-refundable and due prior to tax credit issuance.

Credit Transfer Fees are non-refundable and due at tax credit transfer application submission and are per  transfer.

*Each project is also subject to a non-refundable third-party budget review fee due prior to project approval.

*Application fees are subject to change if submitted budget amounts change prior to approval

KEY TERMS AND DEFINITIONS:
Film:  "Film" or "film project" means a feature film, a television series, or a television show of 22 minutes or more in length, intended for a national audience, or a television series or a television show of 22 minutes or more in length intended for a national or regional audience, including, but not limited to:
 
  1. A documentary feature film, documentary television series, or documentary television shows;
  2. A game show;
  3. A talk show;
  4. A competition or variety show filmed before a live audience; or
  5. An award show or other gala event filmed and produced at a nonprofit arts and cultural venue receiving State funding.
  6. A reality show

"Film" shall not include a production featuring news, current events, weather, and market reports or public programming, or sports event, a production that solicits funds, a production containing obscene material, or a production primarily for private, industrial, corporate, or institutional purposes, or a reality show, except if the production company of the reality show has obtained a minimum six-episode order from, and is commissioned and scheduled to premiere on, a major linear network or streaming service. Reality shows are also subject to both eligibility criteria instead of just one. "Film" shall not include an award show or other gala event that is not filmed and produced at a nonprofit arts and cultural venue receiving State funding.

“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 the service. Notwithstanding where the property is delivered or acquired, rented tangible property is used or consumed in New Jersey to the extent that the property is located in New Jersey during its use or consumption and is rented from a vendor authorized to do business in New Jersey or the film production company provides to the authority the vendor's information in a form and manner prescribed by the authority.

“Independent Contractor” : An individual treated as an independent contractor for Federal and State tax purposes who is contracted with by the approved applicant for the performance of services used directly in a production.

“Loan Out Company” : A personal service corporation or other entity that is contracted with by the approved applicant to provide specified individual personnel, such as artists, crew, actors, producers, or directors for the performance of services used directly in a production. "Loan out company" shall not include entities contracted with by the approved applicant to provide goods or ancillary contractor services, such as catering, construction, trailers, equipment, or transportation. The applicant must withhold 6.37% from All payments made to independent contractors and loan out companies. All loan out companies must be fully authorized to do business in NJ.

“Qualified Film Production Expenses” : An expense incurred in New Jersey after July 1, 2018, for the production of a film, including pre-production costs, and post-production costs incurred in New Jersey. "Qualified film production expenses" shall include, but not be limited to: wages and salaries of individuals employed in the production of a film on which the tax imposed pursuant to N.J.S.A. 54A:1-1 et seq., has been paid or is due; and, the costs for tangible personal property used and services performed, directly and exclusively in the production of a film, such as expenditures for film production facilities, props, makeup, wardrobe, film processing, camera, sound recording, set construction, lighting, shooting, editing, and meals. Payments made to a loan out company or to an independent contractor shall not be deemed a "qualified film production expense" unless the payments are made in connection with a trade, profession, or occupation performed in this State or for the rendition of personal services performed in this State and the approved applicant has made the withholding required pursuant to N.J.A.C. 19:31-21.3(c). As of July 6, 2023, the effective date of P.L. 2023, c. 97, payment made to a homeowner, who is otherwise not a vendor authorized to do business in New Jersey, for the use of a personal residence for filming shall not be deemed a "qualified film production expense" unless the approved applicant has made the withholding required pursuant to N.J.S.A. 54:10A-5.39b.g and 54A:4-12b.h and N.J.A.C. 19:31-21.3(c). Qualified film production expenses can not include payments in excess of $500,000 to a highly compensated individual for wages or salaries or other compensation for writers, directors, including music directors, producers, and performers, other than background actors with no  scripted  lines. Film-Lease Production Companies  may include excess above the line wages and salaries up to $15mm for projects with qualified spends (without including any salaries in excess of $500k) of less than $50mm, and up to $60mm for projects with qualified spends of $50mm or more. All qualified expenses need to be incurred through a vendor authorized to do business in NJ.




New Jersey Film-Lease Production Company : a taxpayer, including any taxpayer that is a member of a combined group under section 23 of P.L.2018, c.48 (C.54:10A-4.11) or any other entity in  which the film-lease production company has a material ownership interest and material operational role in the production, that otherwise complies with the eligibility requirements of the Film and Digital Media Tax Credit Program and has made a commitment to lease or otherwise occupy production space in a New Jersey film-lease partner facility and who will shoot at least 50 percent of the total principal photography shoot days of the project within New Jersey. In addition to the forgoing, if a New Jersey film-lease partner facility has received a temporary or final certificate of occupancy, a film production company shall satisfy one of the following two criteria:  (1) the film production company shoots at least 50 percent of the total principal photography shoot days within New Jersey at the New Jersey film-lease partner facility; or (2) the qualified film production expenses of the project for all services performed and goods used or consumed at the New Jersey film-lease partner facility and payments made for the use of the New Jersey film-lease partner facility equal or exceed 33 percent of the total qualified film production expenses of the project.  In addition to the forgoing, if a New Jersey film-lease partner facility has not yet received a temporary or final certificate of occupancy, a film production company shall have entered into a lease or sublease with the owner or developer of a New Jersey film-lease partner facility, which lease or sublease is for not less than three years of occupancy of the New Jersey film-lease partner facility and includes at least 36,000 square feet of soundstage space, and the film production company shall have executed a contract with the owner or developer of the New Jersey film-lease partner facility to provide production services for films produced by the film production company in New Jersey prior to the New Jersey film-lease partner facility’s receipt of a temporary or final certificate of occupancy.

New Jersey Film-Lease Partner Facility : A film-lease partner facility can be one of the following:
(a) A production facility in New Jersey whose owner or developer has made the commitment to build, lease, or operate a production facility of 250,000 square feet or more, including a sound stage and production support space, for a period of five or more successive years.
(b) A production facility built, leased, or operated by a production company designated as a New Jersey studio partner and which the New Jersey studio partner no longer occupies.
(c) A portion of a production facility owned by a New Jersey 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 250,000 square feet.

Tax Credit Vintage Year :  For applications approved on or after January 1, 2026, “tax credit vintage year” means the applicant’s privilege period or taxable year in which the Authority gives final approval

For applications that received initial approval prior to January 1, 2026, but have not yet received final approval, the approved applicant may elect upon written notice to the Authority to use the tax credit vintage year in (b) above.


Vendor Authorized to do Business in NJ : A vendor that, at the time the expense was incurred in New Jersey, has obtained authorization to conduct business in this State by filing the appropriate documents with the State of New Jersey Department of the Treasury, Division of Revenue and Enterprise Services.


 
 
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