New Jersey currently offers these financial incentives to filmmakers, and the US Government has an incentive program as well:
20% TAX CREDIT PROGRAM FOR FILMMAKERS
New Jersey offers a tax credit in an amount equal to 20% of qualified production expenses, available to production companies meeting certain criteria, chiefly:
(1) At least 60% of the total expenses of a project, exclusive of post-production costs, will be incurred for services performed and goods used or consumed in New Jersey
(2) Principal photography of a project commences within 150 days after the approval of the application for the credit
PRINTABLE APPLICATION FOR NEW JERSEY FILM TAX CREDIT (IN ADOBE PDF FORMAT)
LAW CREATING 20% TAX CREDIT FOR FILMMAKERS
REGULATIONS FOR 20% TAX CREDIT PROGRAM
NEW JERSEY STATE CERTIFICATE OF AUTHORITY
EDISON INNOVATION DIGITAL MEDIA TAX CREDIT PROGRAM
New Jersey offers a 20% corporation business tax credit, for qualified expenses incurred by New Jersey technology companies involved with the production of digital media content.
DIGITAL MEDIA TAX CREDIT GENERAL INFORMATION
PRINTABLE APPLICATION FOR DIGITAL MEDIA TAX CREDIT (IN ADOBE PDF FORMAT)
EXEMPTION FROM NEW JERSEY'S 7% SALES TAX
Certain tangible property used directly and primarily in the production of
films and television programs is exempt from New Jersey's 7% sales tax.
This tangible property includes the purchase of replacement parts for
machinery, tools and other supplies, the purchase of lumber and hardware to
build sets, the rental of picture cars, the purchase or rental of other
types of props, and costs related to the repair of camera and lighting
equipment. To view the entire law, click here:
LAW GRANTING FILMMAKERS SPECIAL EXEMPTION FROM 7% STATE SALES TAX
EXEMPT USE CERTIFICATE (FORM ST-4) AND INSTRUCTIONS
THE NEW JERSEY FILM PRODUCTION ASSISTANCE PROGRAM
The Film Production Assistance Program allows film projects to be eligible
for loan guarantees through the New Jersey Economic Development Authority.
Guaranteeing a portion of loans made by other lenders encourages these
lenders to finance projects they might not ordinarily finance on their own.
Loan guarantees cannot exceed 30% of the bank financing cost of the
project, or $1.5 million, whichever is less.
Until now, most film industry projects did not meet EDA eligibility
requirements because the jobs they created were temporary. The new law
expands the criteria for the EDA's loan guarantee program so qualifying
film production companies can participate.
The legislation sets important criteria for eligibility:
- At least one-half of material and production costs must be spent in New Jersey.
- At least 70% of shooting days must take place in the state.
- Prevailing wage must be paid to workers employed in the project to be financed.
- The project must possess performance bonds.
Application forms are now available. For additional information, follow the links below:
LAW CREATING THE NEW JERSEY FILM PRODUCTION ASSISTANCE PROGRAM
PRINTABLE APPLICATION FOR NEW JERSEY FILM PRODUCTION ASSISTANCE PROGRAM (IN ADOBE PDF FORMAT)
WEBSITE FOR NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY
NATIONAL TAX INCENTIVE PROGRAM
The American Jobs Creation Act, signed into law by President George W. Bush on October 22nd, 2004, offers tax breaks to film and television producers.
DETAILS ON AMERICAN JOBS CREATION ACT