NEW JERSEY:

5/7/07:
NEW JERSEY might soon have an additional $10 million per year (total $20 million) for their transferable credit. This is in addition to a waiver of sales tax, and their 30% loan facilitation guarantee.
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Below from  Axium Payroll Co.'s "Incentives Guide" - Download yours at http://tinyurl.com/z6kxj

New Jersey has a somewhat unique incentive; in addition to a waiver of the 6% sales tax, they offer a loan guarantee of up to 30%, with a maximum of $1.5 million per project. This guarantee is intended as an inducement for lenders to grant production loans. There is also a rebate of the lodging tax upon application, provided a room is occupied for 14 or more consecutive days.
Alternatively, New Jersey offers a tax credit in an amount equal to 20% of qualified production expenses available to production companies meeting certain criteria:
• At least 60% of the total expenses of a project, exclusive of post-production costs, must be incurred for services performed and goods used or consumed in New Jersey, and
• Principal photography of a project must commence within 150 days after the approval of the application for the credit.
Regulations and application materials are currently being created, and will be available soon. The program is capped at $10 million per year.
An online resource database and loan application forms are available on the website.

Incentive information: Click on “Filming Incentives for Filmmakers” on the  Film Commission Home Page.

Joseph Friedman, Executive Director
 New Jersey Motion Picture & Film Commission
 153 Halsey Street - 5th Floor
 P.O. Box 47023
 Newark, New Jersey 07101
 Phone: 973-648-6279
 Fax:  973-648-7350
 Email: NJFILM@njfilm.org

Incentives:
 20% TAX CREDIT PROGRAM

New Jersey offers a tax credit in an amount equal to 20% of qualified production expenses, available to production companies meeting certain criteria, chiefly:
(1) At least 60% of the total expenses of a project, exclusive of post-production costs, will be incurred for services performed and goods used or consumed in New Jersey
(2) Principal photography of a project commences within 150 days after the approval of the application for the credit
The bill creating this tax credit was signed into law in January of 2006. Regulations and application materials are currently being created.

EXEMPTION FROM NEW JERSEY'S 6% SALES TAX
Productions that rent hotel rooms for 14 or more consecutive days during production are eligible for a refund of room taxes.

New Jersey offers a Sales & Use Tax exemption for tangible property and services purchased or rented for and directly used in the production of a motion picture or video.
Food and drink brought onto or made on the location or set for cast, crew and employees is eligible for a sales tax rebate.

Companies must fill out an Exempt Use Certificate to be eligible for the sales tax exemption.
 

New Jersey currently offers two financial incentives to filmmakers:
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REBATE OF NEW JERSEY'S 6% SALES TAX
 Certain tangible property used directly and primarily in the production offilms and television programs is exempt from New Jersey's 6% sales tax.   This tangible property includes the purchase of replacement parts for machinery, tools and other supplies, the purchase of lumber and hardware to build sets, the rental of picture cars, the purchase or rental of other types of props, and costs related to the repair of camera and lighting equipment. To view the entire law, click here:  S-1074 LAW CREATING 6% SALES TAX REBATE FOR FILMMAKERS
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THE NEW JERSEY FILM PRODUCTION ASSISTANCE PROGRAM
 The Film Production Assistance Program allows film projects to be eligible for loan guarantees through the New Jersey Economic Development Authority.   Guaranteeing a portion of loans made by other lenders encourages these lenders to finance projects they might not ordinarily finance on their own. Loan guarantees cannot exceed 30% of the bank financing cost of the project, or $1.5 million, whichever is less.
 Until now, most film industry projects did not meet EDA eligibility requirements because the jobs they created were temporary. The new law expands the criteria for the EDA's loan guarantee program so qualifying film production companies can participate.
 The legislation sets important criteria for eligibility:
 - At least one-half of material and production costs must be spent in New Jersey.
 - At least 70% of shooting days must take place in the state.
 - Prevailing wage must be paid to workers employed in the project to be financed.
 - The project must possess performance bonds.
APPLICATION FOR THE NEW JERSEY FILM PRODUCTION ASSISTANCE PROGRAM
 

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FILMING IN THE TRI-STATE REGION - Of New York, New Jersey and Pennsylvania
From Production Update Magazine June 2004  -  By Virginia Comer
.................................""Governor James McGreevey recently signed into law the New Jersey Film Production Assistance Program," adds Gorlick, "which offers qualified filmmakers up to $1.5 million per project in loan guarantees. This an exciting incentive that will bring even more production to the state in the coming years. ........................READ MORE