the staff of the Ridgewood blog
Trenton NJ, the New Jersey Economic Development Authority (NJEDA) has received commendation from the state auditor for its effective management of the New Jersey film tax credit program. This initiative, a cornerstone of Governor Phil Murphy’s administration, was revitalized under the Garden State Film and Digital Media Jobs Act in the summer of 2018.
State Auditor David Kaschak’s report, issued on Thursday, highlights the NJEDA’s oversight of the program from July 1, 2020, to December 31, 2023. During this period, the NJEDA approved 151 film and digital media projects, resulting in estimated tax credits totaling $704.9 million. The report was largely positive, noting that the NJEDA had implemented adequate controls to ensure that eligible projects were approved, monitored, and certified in compliance with program criteria and legal requirements.
“We found the NJEDA had adequate controls in place to approve eligible projects, monitor the program, and certify tax credits in compliance with internal requirements, applicable program criteria, and the laws governing the program,” the report stated. However, the auditor also suggested that legislative adjustments might be needed to further enhance the program’s economic benefits for the state. Additionally, the report identified some weaknesses in the expenditure certification process and fee collection for administrative costs that require management’s attention.
Kaschak’s review also assessed the program’s eligibility criteria for approved film and digital media projects and examined non-salary qualified film production expenses for certified tax credits. The overarching goal of the program is to incentivize production companies to create film and digital media content in New Jersey by offering transferable tax credits against the Corporation Business Tax and the Gross Income Tax for qualifying expenses.
NJEDA CEO Tim Sullivan expressed his satisfaction with the audit’s findings. “The results of this audit make clear that the investments we have made under Gov. Murphy’s leadership are paying off, and that the EDA is proving itself to be a strong steward of taxpayer resources,” Sullivan said. He emphasized the significant investments made by the governor and Legislature in growing New Jersey’s film and television industry, which have generated thousands of jobs and attracted billions in private investment. “Our taxpayers can be assured that we will remain rigorous in how those resources are being deployed,” Sullivan added, thanking the state auditor and his team for their thorough and efficient review.
The audit underscores the success of the New Jersey film tax credit program in attracting high-profile projects and investments to the state, further solidifying New Jersey’s position as a growing hub for film and digital media production.
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New jersey is the next Hollywood!