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 Bill This bill significantly modifies New Jersey's film and digital media tax credit program (the "Garden State Film and Digital Media Jobs Act") with several key changes: ## Key Changes 1. **Program Extension**: Extends the program's availability until July 1, 2049 (10 years longer than current law). 2. **Increased Tax Credits**: - Raises the tax credit rate for New Jersey studio partners from 35% to 40% of qualified film production expenses when expenses are incurred within a 30-mile radius of a specific NYC location. - Adds a new 4.5% promotional credit for qualifying film productions. 3. **New Promotion Credit**: - Requires a plan with at least 2 of 8 specific criteria to qualify for a 4.5% promotional credit (up to 9% if meeting 4 criteria). - Criteria include: - Creating promotional videos about NJ filming locations - Social media posts about positive NJ experiences - Placing NJ promotional logos - Setting films partially in NJ - Supporting workforce development programs - Providing internships for residents of disadvantaged areas - Engaging vendors in economically disadvantaged areas 4. **Definition Changes**: - Replaces "independent post-production company" with "qualified post-production company" - Modifies "highly compensated individual" definition to $750,000 threshold for all taxpayers (removing previous distinction for studio partners) - Expands "film" definition to include ongoing TV productions that relocated to NJ and feature news/current events 5. **Deferred Compensation**: - Extends supplemental report deadline from 2 to 4 years after production concludes - Allows deferred compensation payments to labor unions to be included in qualified expenses 6. **Maximum Credit Availability**: - Increases maximum cumulative award for studio partners to $300 million (from $150 million) beginning in fiscal year 2026 - Reduces additional discretionary awards from $400 million to $250 million 7. **Recapture Provisions**: - Limits recapture of tax credits to the initial recipient (not purchasers/assignees) - Adds exceptions for failure to occupy facilities due to circumstances outside the taxpayer's control 8. **Diversity Plan Credit**: - Replaces diversity plan requirements (focused on hiring minority persons and women) with requirements focused on hiring from economically disadvantaged areas, distressed municipalities, or federal land. 9. **Tax Credit Purchase**: - Requires the director to purchase unused tax credits at 95% of value (up from 75%) if certain conditions are met. This bill represents a significant expansion of incentives for film and digital media production in New Jersey, with increased financial incentives, new promotional requirements, and extended program availability.