Modifies certain requirements and award availability under film and digital media content production tax credit program.

# Summary of New Jersey Film and Digital Media Tax Credit Program Bill This bill significantly amends New Jersey's film and digital media tax credit program (the "Garden State Film and Digital Media Jobs Act") with several key changes: ## Program Extension - Extends the program's availability until July 1, 2049 (10 years longer than current law) ## Increased Tax Credit Rates - Increases tax credits for New Jersey studio partners from 35% to 40% of qualified film production expenses when incurred at specified locations - Adds a new 4.5% promotional credit for qualifying film productions ## New Incentives - Creates a new 4.5% tax credit for television series that relocated to New Jersey (defined as scripted series with at least 6 episodes, $2.5M average production budget per episode, with all prior seasons filmed outside NJ) - For qualifying TV series, the promotional credit can increase to 9% if four specific promotional criteria are met ## New Definitions and Requirements - Replaces "independent post-production company" with "qualified post-production company" - Expands definition of "film" to include certain ongoing TV productions that relocated to NJ - Amends definition of "highly compensated individual" to remove distinctions between studio partners and others (now $750,000 threshold for all taxpayers) - Adds script costs to qualified film production expenses for studio partners and film-lease production companies ## Enhanced Diversity and Promotion Requirements - Requires diversity plans to focus on hiring from economically disadvantaged areas, distressed municipalities, or federal land (instead of focusing on minority persons and women) - Creates a new promotional credit requiring at least 2 of 8 specific criteria (including social media posts, location videos, promotional logos, etc.) - For TV series that relocated to NJ, requires 4 promotional criteria to qualify for the higher 9% credit ## Credit Availability and Recapture - Increases maximum cumulative awards for New Jersey studio partners from $150 million to $300 million - Reduces additional discretionary awards from $400 million to $250 million - Limits recapture of tax credits to the initial recipient (not the purchaser/assignee of tax credit transfer certificates) - Allows exceptions to recapture when failure to occupy facility is outside the company's control ## Other Key Changes - Extends deadline for submitting supplemental reports on deferred compensation from 2 to 4 years after production concludes - Allows deferred compensation payments made directly to labor unions to be included in qualified film production expenses - Requires the director to purchase unused tax credits for the film program at 95% of value (previously not required) - Expands the applicability of transferred tax credits to include insurance premium tax liability The bill aims to strengthen New Jersey's film industry by providing more generous incentives for production, encouraging relocation of TV series, and promoting local economic development.