The New Jersey state legislature has approved a bill, identified as A5827/S4618, aimed at expanding the state's film and digital media tax credit program. This initiative offers financial subsidies to film studios for producing movies and television shows in New Jersey, potentially covering up to half of their production costs. The new legislation seeks to increase credit amounts for certain projects while easing accountability requirements. For fiscal year 2026, this program is projected to cost the state approximately $250 million even without these modifications.
Peter Chen, Senior Policy Analyst at NJPP, expressed concerns regarding the expansion: “Passing yet another expansion of the film tax credit program to subsidize Hollywood studios, at a time when low- and middle-income families are struggling with day-to-day costs, locks the state even further into an ever-more-expensive waste of money with no end in sight. With added bonuses, the state government will be subsidizing some productions at nearly half of their total expenses, all while the bill limits the state’s ability to get those credits back if the productions fail to deliver on their promises of economic growth."
Chen further emphasized that "with the state running a structural deficit," it is crucial for lawmakers "to think about how to increase revenue to protect New Jerseyans from future cuts and recessions," rather than devising ways "to give big corporations hundreds of millions of dollars to boost their private profits." He noted that "families in New Jersey need financial help today, not celebrity cameos.”
