NJ Gov. Phil Murphy has signed laws to develop tax credit for digital media manufacturing as a part of a push to attract new enterprise to the state following his incentives for movie and tv.
Murphy launched a tax credit score regime for movie and TV in 2018 and expanded it in 2020. It’s boosted manufacturing, attracting initiatives like West Side Story, The Equalizer and The Many Saints of Newark. This newest regulation offers the identical therapy to digital media, which it didn’t outline however can embody a spread of content material from leisure web sites and digital publishing to video video games. Leading digital companies within the state embody the NBC Universal Digital Media Campus in Englewood Cliffs (the place CNBC is headquartered) and Audible, owned by Amazon, which is predicated in Newark.
The new laws boosts the portion of the tax credit score program allotted to digital media content material to 30% of certified spending in state and 35% in particular counties (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem). It additionally will increase the cumulative annual limitation on digital media content material manufacturing tax credit to $30 million from $10 million.
“Digital media projects are just as important to the entertainment industry and economy as film projects, and deserve the same opportunities to grow and thrive in our state,” mentioned State Senator Gordon Johnson, a sponsor of the laws. “This law will give New Jersey an even more competitive edge by further establishing our state as an appealing destination for creative projects of all kinds.”
The new laws didn’t actually tinker with movie and TV credit, that are nonetheless set at 30% or 35% relying on location plus an evolving 2%-4% “diversity bonus.” The one new aspect in movie/TV is that beginning in fiscal 2025, the state will allocate an extra $100 million in tax credit for New Jersey’s film-lease companions (firms that lease 50,000 sq. toes of area).
NJ at the moment has $100 million every earmarked for 3 designations of producers — film-lease companions, studio companions (firms that lease 50,000 sq. toes of area) and one-off productions. The first two had been developed final January to spur studio growth. The new regulation makes it simpler shift funds from film-lease companions to the opposite two classes.
The specifics can be launched in March.
Overall, the New Jersey Film & Digital Media Tax Credit Program, “will ensure that our state remains a top destination for some of our country’s most significant film and TV productions,” Murphy mentioned.
New Jersey is strategically situated, between New York and Philadelphia. Being in NYC’s yard, it has its justifiable share of expert trade labor. “But convenience is nothing if it doesn’t also make financial sense to attract the business activity,” mentioned State Senator Paul Sarlo, one other backer. “By increasing the credits of these programs and enhancing the financial incentive to support the film industry and digital media in our state we can solidify New Jersey as a go-to destination for these projects.”
Attracting new enterprise is very key because the state continues to recuperate from the challenges of the Covid-19 pandemic, lawmakers famous.
The MPA additionally weighed in: “Governor Murphy led the way to enact a strong production incentive program in 2018 and New Jersey has already benefited from the film, television, and streaming industry directly supporting more than 20,000 jobs and over $2 billion in wages,” mentioned chairman-CEO Charles Rivkin in an announcement. “That program grows stronger with new enhancements signed into law last night which will create more jobs in the state and investment into the New Jersey economy. I applaud Governor Murphy for his continued leadership, and all the champions of the creative economy in the legislature for expanding New Jersey’s production incentive program.”