54:10A-5.39c Tax credit criteria.
4. a. A taxpayer, upon approval of an application to the authority and the director, and subject to the provisions of section 6 of P.L.2025, c.81 (C.54:10A-5.39e), shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) or under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to four percent of the qualified film production expenses or four percent of the digital media content production expenses of the taxpayer during a privilege period or taxable year commencing on or after July 1, 2018 but before July 1, 2049, provided that: (1) the application is accompanied by a plan outlining specific goals, which may include advertising and recruitment actions, for hiring at least 25 percent of the employees working in New Jersey, including, but not limited to, extras, but excluding independent contractors, who are residents of an economically disadvantaged area in the State, a distressed municipality as that term is defined in section 55 of P.L.2020, c.156 (C.34:1B-323), or land owned by the federal government on or before December 31, 2005; (2) the director and the authority have approved the plan as meeting the requirements established by this section; and (3) the director and the authority have verified that the applicant has met or made good faith efforts in achieving those goals. b. (Deleted by amendment, P.L.2025, c.81) c. The director and the authority may adopt any rules necessary to implement this provision. d. The application shall indicate whether the applicant intends to participate in training, education, and recruitment programs that are organized in cooperation with State colleges and universities, labor organizations, or a motion picture industry organization and are designed to promote and encourage the training and hiring of New Jersey residents of an economically disadvantaged area in the State, a distressed municipality as that term is defined in section 55 of P.L.2020, c.156 (C.34:1B-323), or land owned by the federal government on or before December 31, 2005. e. Notwithstanding any law, rule, or regulation to the contrary, at the election of the taxpayer, any taxpayer that has satisfied the requirements of section 4 of P.L.2018, c.56, as amended by section 4 of P.L.2024, c.33, through the submission and approval of a diversity plan, provided that the application was submitted to the authority no later than 30 days after the effective date of P.L.2025, c.400, and the production commenced no later than the effective date of P.L.2025, c.81 (C.54:10A-5.39d et al.), shall be allowed an additional tax credit in the amount of two percent or four percent of qualified film production expenses or qualified digital media production expenses, pursuant to section 4 of P.L.2018, c.56, as amended by section 4 of P.L.2024, c.33. Any additional tax credit allowed pursuant to this subsection shall be allowed instead of, not in addition to, an additional tax credit otherwise allowed pursuant to this section. f. Notwithstanding any provision of this section to the contrary, a taxpayer that qualifies for an additional tax credit pursuant to both section 5 of P.L.2025, c.81 (C.54:10A-5.39d) and this section shall be allowed in combination with a four percent additional tax credit pursuant to section 5 of P.L.2025, c.81 (C.54:10A-5.39d), an additional tax credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) or the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., in an amount equal to one percent of the qualified film production expenses or qualified digital media content production expenses of the taxpayer. (Recodified January 2026, formerly T&E, 2018, c.56, s.4); amended 2025, c.400, s.3.