On June 30, 2025, Governor Phil Murphy signed legislation to expand and strengthen the New Jersey Film and Digital Media Tax Credit Program, including an extension of the program for an additional 10 years through July 1, 2049.
The newly enacted legislation introduces several enhancements to New Jersey’s film and television tax credit program. Notably, it increases the maximum tax credit available to a New Jersey Studio Partner from 35% to 40% of qualified expenses incurred within a 30-mile radius of Columbus Circle in New York City. By increasing the credit percentage, this makes the counties within the 30-mile radius more attractive to potential major studio partners. Studio partners must commit to building or leasing a production facility in New Jersey of at least 250,000 square feet and maintaining it for a period of at least 10 years.
Additionally, the new law offers a 4% bonus for productions hiring individuals from certain economically disadvantaged areas, while also streamlining the application process for eligible participants. Furthermore, it creates an additional tax credit of 4% of qualified production expenses for certain film productions for promoting and investing in New Jersey’s film industry.
The New Jersey Film and Digital Media Tax Credit Program has been highly successful, attracting film and television productions and major studios to the state. This is a transferable credit against the corporation’s business tax and the gross income tax for qualified expenses incurred to produce certain film and digital media content in New Jersey.
Film Tax Credit Program
| Credit Rates | – 35% on wages and salaries for work performed in NJ. – 35% on goods and services used or consumed in NJ. – 30% on goods and services used or consumed in NJ within a 30-mile radius of Columbus Circle, NY. |
| Eligibility | Must meet the state’s definition of a “film” and have one of two following scenarios apply: – Have had either 60% of the total film production expenses (exclusive of post-production costs) incurred for services and goods purchased through vendors authorized to do business in New Jersey. – Exceed $1 million of qualified film production expenses. |
| Diversity Bonus | – 2% for prioritizing hiring of minority persons and women in an amount no less than 25% of the total hired. – 2% for prioritizing hiring of minority persons and women in an amount no less than 25% of the total on-screen talent. |
Digital Media Tax Credit Program
| Full Digital Credit Rates | – Either 30% on qualified digital media production expenses;OR – 35% on goods and services used or consumed in southern New Jersey counties. |
| Eligibility (Full) | – Incur at least $2 million of the total digital media content production expenses incurred for services performed, and goods purchased through vendors authorized to do business in New Jersey. – As well as 50% of the qualified digital media content production expenses be for wages and salaries paid to full-time or full-time equivalent employees in New Jersey. |
| Post-Production Only Credit Rates | – 40% of qualified digital media production expenses for post-production services performed at a New Jersey film-lease production facility or that are incurred by a New Jersey studio partner. – 35% of the qualified digital media content production expenses incurred for post-production services, including visual effects services performed by a qualified independent post-production company. |
| Eligibility (Post-Production) | – Incur at least $500k for post-production expenses in a single tax year under one of the following scenarios: – Through a qualified independent post-production company. – At a New Jersey film-lease partner facility. – By a New Jersey studio partner. |
Application Process and Agreed Upon Procedures (AUP) Report
Applicants can apply through theNew Jersey Economic Development Authority (NJEDA) website. After initial approval, NJEDA assigns a tax credit amount and vintage year, followed by an approval letter outlining reporting requirements and final documentation deadlines.
An independent CPA must conduct an AUP Report to verify eligibility and expenses. This includes reviewing payroll and non-payroll costs and preparing a cost summary with any exceptions.
Why Withum?
- Independent verification by Withum enhances the credibility of the production expenses and compliance with the program.
- Streamlines the process of verifying qualified expenses, facilitating quicker approval and issuance of tax credits.
- Ensures that the production company meets all the eligibility requirements of the New Jersey Film and Digital Media Tax Credit Program.
Withum has extensive experience in conducting AUP reports for tax credits, including for the film and digital media industry. Our team is well-versed in the specific requirements and nuances of the Garden State Film and Digital Media Jobs Act. We meticulously verify that all production expenses meet eligibility criteria, enhancing the credibility of your reported expenses and facilitating quicker approval and issuance of tax credits. Withum is committed to supporting your production every step of the way, and we look forward to helping you secure the tax credits your production deserves.
Authors: Alex Holderbaum, Team Leader, Theatre and Entertainment | [email protected] and Ryan Flash | [email protected]
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For more information on this topic, reach out to Withum’s Theatre and Entertainment Services Team today.
