New Jersey’s Film Industry Boost: EDA Reopens Applications for Studio Designations
Studio Partners and Film-Lease Partners Designations: Aiming for Large-scale Studio Development
New Jersey’s push to bolster its film industry received a boost as the state’s Economic Development Authority reopened applications for production studios seeking special designations. These designations, known as Studio Partners and Film-Lease Partners, were introduced under the Economic Recovery Act of 2020 to supplement the state’s Film and Digital Media Tax Credit Program. The aim is to foster the development of large-scale studio facilities, with each designation carrying an allocation of $150 million per fiscal year. The Studio Partner designation grants approved film companies access to additional tax credits by incorporating above-the-line salaries and wages into their award calculations, along with an increased award percentage. Eligibility requires the applicant to be a production company with site control of a facility spanning at least 250,000 square feet for a minimum of 10 years. Meanwhile, the Film-Lease Partner Facility Designation targets owners, lessees, or operators of similarly sized production facilities for a period of five years or more. This designation allows future tenants to benefit from increased tax credit awards, provided they meet certain filming criteria within the state.
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Tax Credit for Film Studio Applicants NJEDA Welcomes Back – Growth and Investment in New Jersey’s Entertainment Sector!(PHOTO: NJEDA)
Detailed Requirements for Studio and Film-Lease Partner Designations: Approval, Redevelopment, and Certification
Both designations mandate preliminary site plan approval, a signed redevelopment agreement, or an adopted redevelopment plan for the facility’s construction. Additionally, the facility must secure either temporary or permanent occupancy certification within 36 months of approval. Interested parties can apply and find further details on eligibility and program specifics through the New Jersey Economic Development Authority’s website, selecting the “Film Tax Credit Program” and then “Studio Partners, Film-Lease Production Facilities, and Film-Lease Production Companies” from the drop-down menus.
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