Film Tax Credit Film-Lease Production Company Program

WELCOME PAGE: 
 
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 CustomerCare@njeda.gov. 

• 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, social security number, date of birth, position, citizenship information and percent ownership for all officers and directors.  

• For Nonprofit Organizations:  Name, address, social security number, 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, NJ Hiring Bonus, Promote NJ Bonus 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, an NJ Hiring plan (if applicable), Promote NJ Bonus form (if applicable), a NJ location list, an operating agreement / bylaw form, application certification and a legal certification. If the applicant is making a film on behalf of a Film Lease Production Company, we will also need a copy of the agreement between the two entities.  
 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 a New Jersey Film-Lease Production Company or be making the film on behalf of a New Jersey Film-Lease Production Company. 

• Be 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, or an ongoing television production that relocated to New Jersey and features news or current events, which may include sports themed current events programming, but shall not include a sports event, provided that the ongoing television production relocates to a facility that is leased or owned by the New Jersey Film-Lease Production Company and for which facility such New Jersey Film-Production Company received its designation as a New Jersey Film-Production. 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 four-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: 
  • 60 percent of the total film production expenses (exclusive of post -production costs) must be incurred for services and goods purchased through vendors authorized to do business in New Jersey OR
  • Qualified film production expenses (expenses incurred in New Jersey for the production of a film) must exceed $1 million per production. 

• Shoot at least 50 percent of the total principal photography shoot days of the film project within New Jersey and:
• 1. In addition to the foregoing, if a 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 of the film project within New Jersey at the 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 film-lease partner facility, including qualified wage and salary payments and payments made for the use of the facility, equal or exceed 33 percent of the total qualified film production expenses of the film project.
  2. In addition to the foregoing, if a film-lease partner facility has not yet received a temporary or final certificate of occupancy, a film production company shall have:
     1. Entered into a lease or sublease with the owner or developer of a film-lease partner facility, which:
        1. Is for not less than three years of occupancy of the film-lease partner facility;
        2. Includes at least 36,000 square feet of soundstage space.

• 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 the production company has obtained a minimum four-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: 

“Distressed Municipality”: A municipality that is qualified to receive assistance underP.L.1978, c.14 (C.52:27D-178 et seq.), a municipality under the supervision of the Local Finance Board pursuant to the provisions of the "Local Government Supervision Act(1947)," P.L.1947, c.151 (C.52:27BB-1 et seq.), a municipality identified by the Director of the Division of Local Government Services in the Department of Community Affairs to be facing serious fiscal distress, a SDA municipality, or a municipality in which a major rail station is located. 
 
“Economically Disadvantaged Areas”: A New Jersey municipality that contains a federal population census tract that was eligible to be designated as a qualified opportunity zone pursuant to 26 U.S.C. § 1400Z-1. 
“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 four-episode order from, and or is commissioned and scheduled to premiere on, a major linear network or streaming service. "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. 
 
"Highly compensated individual": For studio partners and film-lease production companies which submitted a complete application on or before June 30, 2025, an individual who directly or indirectly receives compensation in excess of $500,000 for the performance of
services used directly in a production and for approved applicants other than studio partners and film-lease production companies [who applied] which submitted a complete application on or after July 10, 2024, an individual who directly or indirectly receives compensation in excess of $750,000 for the performance of services used directly in a production. After June 30, 2025, "highly compensated individual" means, for all approved applicants, an individual who directly or indirectly receives compensation in excess of $750,000 for the performance of services used directly in a production. An individual receives compensation indirectly when the [taxpayer] approved applicant pays a loan out company that, in turn, pays the individual for the performance of services.
 "Homeowner": An individual who owns and occupies a personal residence, whether as their primary residence or otherwise.
“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. 


"New Jersey Film-Lease Partner Facility"  : 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: 

1. A production facility;
2. A production facility built, leased, or operated by a production company designated as a studio partner, which the studio partner no longer occupies; or 
3. 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 Production Company:"

• (a) An applicant, including any applicant that is a member of a combined group pursuant to N.J.S.A. 54:10A-4.11 or any entity in which the film-lease production company has a material ownership interest of at least 30 percent and oversight of operations, and who will shoot at least 50 percent of the total principal photography shoot days of the film project within New Jersey.
  1. In addition to the foregoing, if a film-lease partner facility has received a temporary or final certificate of occupancy, a film production company shall satisfy one of the following:
     1. The film production company shoots at least 50 percent of the total principal photography shoot days of the film project within New Jersey at the film-lease partner facility; or
     2. The qualified film production expenses for services and goods used or consumed at the film-lease partner facility equal or exceed 33 percent of the total qualified film production expenses.
  2. In addition to the foregoing, if a film-lease partner facility has not yet received a temporary or final certificate of occupancy, a film production company shall have:
     1. Entered into a lease or sublease with the owner or developer of a film-lease partner facility, which:
        1. Is for not less than three years of occupancy;
        2. Includes at least 36,000 square feet of soundstage space; and
        3. Cannot be subleased to an entity that does not meet the definition of “film-lease production company.”
     2. Executed a contract with the owner or developer of the film-lease partner facility for production services prior to the facility receiving a temporary or final certificate of occupancy.
• (b) An unrelated entity principally engaged in the production of a film or other commercial audiovisual product with whom a film-lease production company tenant contracts after satisfying the requirements in (a), such that the tenant:
  1. Controls the film or product during preproduction, production, and postproduction; or
  2. Controls global distribution rights for the resulting film or audiovisual product.

A television series produced by a New Jersey film-lease production company that satisfies the three-year lease requirements under this paragraph and that commences principal photography in New Jersey prior to the New Jersey film-lease partner facility's receipt of a temporary or final certificate of occupancy shall remain eligible to receive the tax credits only available to the film production company by virtue of the film production company's designation as a New Jersey film-lease production company, provided that the series continues production in New Jersey, the film production company continues to satisfy the requirements of a New Jersey film-lease production company at least through the conclusion of production of the television series in New Jersey, and the television series continues to satisfy the requirements for a film that commences production prior to the New Jersey film-lease partner facility’s receipt of a temporary or final certificate of occupancy.

In the event the authority determines that a New Jersey film-lease production company has failed to meet the qualifications of a New Jersey film-lease production company or otherwise comply with the provisions of this section, except for the failure to occupy the New Jersey film-lease partner facility for any reason outside the control of the New Jersey film-lease production company, subject to any rules the authority may determine necessary to implement this provision, including, but not limited to, a definition of reasons outside the control of the New Jersey film-lease production company, the authority may recapture solely from that film production company the portion of any tax credits that had been awarded to that film production company that was only available to the film production company by virtue of the film production company's designation as a New Jersey film-lease production company, except that the tax credits shall not be recaptured from the purchaser or assignee of a tax credit transfer certificate, and all films for which an initial approval has been given, but for which the authority has not approved final documentation, shall be reduced to eliminate the portion of the tax credits only available by virtue of such designation. If a New Jersey film-lease production company was issued a film tax credit on the basis of a lease or sublease with a New Jersey film-lease partner facility before that facility receives a temporary or final certificate of occupancy and the New Jersey film-lease production company fails to meet the qualifications of a New Jersey film-lease production company or otherwise comply with the applicable provisions in the definition of New Jersey film-lease production company, including, but not limited to, the failure to occupy the required amount of space at a New Jersey film-lease production facility for the required time, the authority shall not recapture any tax credits within one year of the date of the New Jersey film-lease production company’s lease with the New Jersey film-lease production facility, which the authority shall extend for one additional year if the New Jersey film-lease production facility commences construction, as evidenced by the issuance of a building permit, within one year of the date of the New Jersey film-lease production company’s lease with the New Jersey film-lease production facility.

“New Jersey film-lease production company tenant”: the film-lease production company that is the party to the lease or sublease with the owner or developer of a film-lease partner facility.

“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. For a New Jersey studio partner or New Jersey film-lease production company that enters into a lease to occupy a New Jersey film-lease partner facility for at least three years, “qualified film production expenses” includes the following expenses incurred in the production of the film, which expenses shall be included in a percentage proportional to the percentage of principal photography shoot days in the State:  total production insurance premiums paid to insurance companies doing business in New Jersey, which premiums shall exclude payments for errors and omissions insurance; total producer fees; and total rights fees. However, cumulative expenses for production insurance premiums, producer fees, and rights fees shall not exceed seven and one-half percent of “qualified film production expenses” for any New Jersey studio partner or New Jersey film-lease production company.  For a New Jersey studio partner or New Jersey film-lease production company that enters into a lease to occupy a New Jersey film-lease partner facility for at least three years, “qualified film production expenses” includes: the total script costs of any script written within New Jersey; or the product of the total script costs of any script written outside New Jersey and the percentage of the principal photography shoot days in New Jersey relative to the total principal photography shoot days for the film. 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 $750,000 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 (including any salaries in excess of $750k) 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. 

“Tax Credit Vintage Year”: The approved applicant’s privilege period or taxable year in which the Authority gives final approval after submission of CPA cost certification. 

“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.