by Jessica Beym/Gloucester County Times

Tax credits for film and digital media would expand under proposed legislation

Published: Friday, December 17, 2010, 1:44 PM

Jessica Beym/Gloucester County Times By Jessica Beym/Gloucester County Times

Legislation to expand New Jersey’s film and digital media production tax credit once it’s restored in 2011 was released this week 7-0-4 by an Assembly panel.

The bill (A-2905) as of July 1, 2011 increases the annual program cap for the film production tax credit from $10 million to $50 million and for the digital media production tax credit from $5 million to $10 million.

The bill also provides for a tax credit equal to 22 percent, instead of the current 20 percent, of eligible production expenses if the expenses represent purchases of goods from businesses located in Urban Enterprise Zones or purchases of services performed by residents of a UEZ.

The measure is part of the Legislature’s Back to Work NJ job creation and economic development package.

An Ernst & Young study of the economic and fiscal impacts of the New Mexico film production tax credit concluded that 2007 film productions generated 9,209 jobs in New Mexico, $487.5 million in additional income and $891.8 million in additional economic activity.

A June 2009 study of Pennsylvania’s Film Production Tax Credit conducted by Economic Research Associates yielded similar positive results. The bill was released by the Assembly Budget Committee.