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New Jersey Vastly Expands Tax Credits for Film/TV Productions

The new tax credits, which were signed by Gov. Phil Murphy, will be in effect until 2034

New Jersey Gov. Phil Murphy signed into law Thursday a significant expansion of the state’s tax credits for film and TV productions, hoping to pull more major entertainment projects from hubs like California, Georgia and New York.

The new tax credit system will offer digital media projects shot in New Jersey a 30% tax credit on all qualified expenses, with that credit increasing to 35% in certain southern counties. The maximum credit has also been increased from $10 million to $30 million. Starting in 2025, the program will also allow an additional $100 million in tax credits for New Jersey film-lease partners from credits authorized under other incentive programs.

“This legislation will ensure that our state remains a top destination for some of our country’s most significant film and TV productions,” said Gov. Murphy in a statement. “The New Jersey Film & Digital Media Tax Credit Program has brought numerous productions to our state, creating jobs for New Jerseyans, and bringing in money that is being spent with local businesses. We look forward to attracting even more productions to our state with the expanded tax credits and improvements that this legislation provides.”

“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,” Rivkin said.

Motion Picture Association Chairman Charles Rivkin hailed the program expansion as one that “will create more jobs in the state and investment into the New Jersey economy.”

“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,” Rivkin said.

Among the projects that have recently filmed in New Jersey and received tax credits include Alan Taylor and David Chase’s “Sopranos” prequel “The Many Saints of Newark” and Steven Spielberg’s “West Side Story.” The New Jersey Economic Development Authority estimates that since the tax credit program was introduced in 2018, film and TV projects have spent over $635 million in the state.

The expansion comes as other major production states like California have expanded their own tax credit programs as competition for top productions has intensified. Last year, the California state legislature passed a $330 million expansion of its tax credit program to encourage Hollywood studios to keep their productions close to home.