“Full Time or Full Time Equivalent”:
“Full-time or full-time equivalent employee” means an individual employed by the taxpayer for consideration for at least 35 hours a week, or who renders any other standard of service generally accepted by custom or practice as full-time or full-time equivalent
employment, whose wages and salaries and other compensation are subject to withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., or whose wages and salaries and other compensation are not subject to tax under the Act
due to a reciprocity agreement with another state. It also includes partners working at least 35 hours a week whose distributive share is subject to estimated taxes. It does not include independent contractors.
“Incurred in New Jersey”:
A service is performed in New Jersey to the extent that the individual performing the service is physically located in New Jersey while performing it. Rented tangible property is considered used or consumed in New Jersey to the extent it is located in
New Jersey and rented from a vendor authorized to do business in New Jersey.
“Independent Contractor”:
An individual treated as an independent contractor for Federal and State purposes who is contracted by the approved applicant for services used directly in a production.
“Loan Out Company”:
A personal service corporation or entity contracted by the approved applicant to provide individual personnel for services used directly in a production. Does not include companies providing goods or ancillary services.
The applicant must withhold 6.37% from all payments made to independent contractors and loan out companies. All loan out companies must be authorized to do business in NJ.
“New Jersey Film-Lease Partner Facility”:
One of the following facilities for which the owner, developer, or tenant has committed to operate for at least five successive years:
- A production facility;
- A production facility built or leased by a designated studio partner that is no longer occupied by the partner;
- A portion of a production facility owned by a studio partner that exceeds the space utilized by the partner.
“New Jersey Film Lease Post-Production Company”:
A qualified post-production company that:
(a) Has a material operational role in production, leases space in a film-lease partner facility, and meets statutory requirements.
(b) If the facility has no certificate of occupancy, the company must have a lease:
- For at least three years;
- Including at least 36,000 sq. ft.;
- That cannot be subleased to an entity not meeting the definition.
“New Jersey Film Lease Post-Production Company Tenant”:
The film-lease post-production company that is party to the lease with the owner or developer.
“Qualified Digital Media Production Expenses”:
Expenses incurred in New Jersey for digital media content production, including wages, software, hardware, editing, sound design, visual effects, animation, color grading, and mastering. Payments to loan-out companies or independent contractors qualify
only if required NJ withholding is completed. Certain marketing, website-related, and unrelated costs are excluded.
All qualified expenses must be incurred through a vendor authorized to do business in NJ.
“Qualified Post-Production Company”:
An entity engaged in post-production activities, including visual effects, that incurs post-production costs on qualifying films.
“Qualified Wage and Salary Payments”:
Wage, salary, or other compensation incurred by the approved applicant that qualifies as film or digital media production expenses.
“Tax Credit Vintage Year”:
The applicant’s taxable year in which final approval is granted after CPA cost certification.
“Total Digital Media Content Production Expenses”:
Costs for services and property used in producing digital media content. Does not include intangible personal expenses incurred after Feb 26, 2024.
Vendor Authorized to do Business in NJ:
A vendor that has filed the required documents with the NJ Department of the Treasury to legally conduct business in the State.
