NJ A5827

Extends New Jersey's film and digital media tax credit program from 2039 to 2049, with New Jersey studio partners eligible for 40% tax credits on qualified production expenses and film-lease production companies receiving 35% credits

Creates a new "New Jersey film-lease post-production company" category eligible for 40% tax credits on post-production and visual effects expenses when performed at designated partner facilities with minimum $500,000 in qualifying expenses

Expands qualified film production expenses for studio partners to include script costs, production insurance premiums, producer fees, and rights fees (capped at 7.5% of total expenses), with additional allowances up to $72 million for highly compensated individuals on large productions

Establishes a mandatory state purchase program for tax credits at 95% of face value for New Jersey studio partners, subject to annual caps starting at $80 million in fiscal year 2026 and increasing to $200 million annually thereafter, contingent on state budget conditions

Allows unused tax credits from other taxpayer categories (up to $100 million annually starting fiscal year 2028) to be reallocated to New Jersey studio partners, and provides protections against recapture for purchasers of tax credit transfer certificates