NEWS
Posted 9 September, 2010 in NJ News
Update from Eisner Amper:
The New Jersey Division of Taxation has posted an official Notice regarding the preservation of the New Jersey Film Production Tax Credit for production companies and purchasers that hold or transferred Tax Credit Transfer Certificates and whose tax returns have an original due date prior to July 1, 2010.
The Notice avoids a potential retroactive application of the State’s suspension of the film and digital media production tax credit program that was enacted for the State’s fiscal year budget period, July 1, 2010 to June 30, 2011. The Division’s clarification of the tax credit suspension was hastened at the initiative of EisnerAmper’s Film Incentive Services Group who, working in close cooperation with tax credit placement specialists and industry representatives, identified the ambiguity in the Budget Act that could have opened the door to retroactivity.
For further details, please visit: NJ Film Tax Credit Update
Effective August 16, 2010, Eisner LLP combined with Amper, Politziner & Mattia, LLP to form EisnerAmper LLP. For our entertainment industry clients, this means broader services and deeper expertise through the union of Amper’s Film Incentive Services Groupand Eisner’s Sports, Media & Entertainment Group.
Questions? For more information, please contact EisnerAmper partner John C. Genz, CPA, MST.
This publication is intended to provide general information to our friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.
Posted 6 August, 2010 in NJ News
Courtesy of the Entertainment Economy Institute:
The Wrap
Brent Lang
June 25, 2010
“Law & Order: SVU” is relocating from its home in northern New Jersey. The culprit is Republican Governor Chris Christie. The show’s move was prompted by Christie’s decision to do away with film tax credits that covered up to 20 percent of certain production costs, an individual close to the production confirmed to TheWrap.
Trade organizations such as the Motion Picture Association of America had been lobbying vigorously against killing the credits, but Christie’s budget proposal, which includes jettisoning the production incentives, is expected to pass both the state’s house and senate on Monday.
The show will likely head across the Hudson River to New York City. It’s currently examining the viability of moving production to the Chelsea Piers studios where the recently canceled “Law & Order” was shot, the individual said.
Though early reports indicated than many of the show’s longtime production staff might be forced to look for new jobs, it appears likely that “SVU”s’ producers will try to keep much of the team intact — they may just have a longer commute.
Click here for link: http://www.thewrap.com/television/blog-post/law-ordersvu-says-good-bye-jersey-18774
Posted 1 July, 2010 in NJ News
Courtesy of The Incentives Office:
New Jersey Gov. Chris Christie’s budget reform package, which includes suspension of the tax credit, was signed into law on June 30th.
Courtesy of Cast & Crew The Incentives Program:
New Jersey has temporarily suspended the film incentive in order to reduce spending and allow the State Treasurer to evaluate the effectiveness of the current program. This effectively reduces the annual cap on the film incentive from $10M per fiscal year to $0 for fiscal year ending 06/30/2011. However, the suspension is only limited to the authorization of new credits in fiscal year 2011. As a result, this bill would not affect the carryover of unused film and digital media tax credits allowed in a previous year.
Posted 21 June, 2010 in NJ News
Courtesy of EP Incentive Solutions:
The Governor proposed to eliminate $15 million in film tax credits for 2011 while a study is undertaken to evaluate the credit’s effectiveness in creating full-time, permanent jobs. Negotiations continue and there is a possibility that the film tax credits will remain intact. A final budget is expected prior to July 1, 2010.
Posted 7 June, 2010 in NJ News
The Senate recently introduced a bill in New Jersey which would make the state film incentive program more competitive with other states. The proposed legislation increases the amount of the nonrefundable tax credit from 20% to 25% of qualified expenditures, and increases the annual cap from $10 million dollars to $50 million dollars in fiscal year 2011 and each fiscal year thereafter. Insurance companies would also be added to the pool of potential purchasers of tax credit transfer certificates from production companies who do not have a sufficient tax liability against which to apply their tax credits.
Posted 7 June, 2010 in NJ News
Senator Paul A. Sarlo, Chairman of the Senate Budget and Appropriations Committee, has called a special public Committee hearing to discuss the future of New Jersey’s Film and Digital Media Tax Credit Program. The Hearing will take place on Wednesday, June 9th, from 11:00 am – 1:00 pm at NBC/Universal’s “Mercy” Studio,10 Enterprise Avenue North in Secaucus (just off Meadowlands Parkway).
Introduced last November, the Garden State Film and Digital Media Jobs Act,(Senate, No.3002), which was co-sponsored by Senators Paul Sarlo and Thomas Kean Jr, seeks to enhance the current tax credit program for filmmakers…to attract even more films to the state, stimulate local business and create more jobs. Unfortunately, the new administration has proposed suspending the current program altogether for Fiscal Year 2011 (which begins on July 1, 2010).
At the June 9 public hearing, the Budget and Appropriations Committee will invite testimony from those who would be affected by even a temporary suspension of the program. We will hear from production-related businesses, individuals whose livelihood depend on a continuous stream of production in New Jersey, filmmakers, producers and of course the production companies that will not consider filming in NJ without an economic incentive!
Please make every effort to attend this hearing. At this critical juncture, your presence and support is essential to the survival of the program!
If you are unable to attend this important event, please consider sending letters in support of the program to the individuals, below:
Senator – Chairman of Budget and Appropriations Committee
The Hon. Paul A. Sarlo
207 Hackensack Street, 2nd Floor
Wood Ridge, NJ 07075
201-804-8118
Senator – Senate Minority Leader
The Hon. Thomas H. Kean Jr.
425 North Street East
Westfield, NJ 07090
908-232-3673
Senator – Senate Majority Leader
The Hon. Barbara Buono
2 Lincoln Highway, Suite 401
Edison, NJ 08820
732-205-1372
Senator – Senate President
The Hon. Stephen M. Sweeney
Kingsway Commons
935 Kings Highway, Suite 400
Thorofare, NJ 08086-2238
856-251-9801
Senator – Assistant Majority Leader
The Hon. M. Teresa Ruiz
166 Bloomfield Ave.
Newark, NJ 07104
973-484-1000
Assemblyman – Assembly Speaker
The Hon. Sheila Oliver
15-33 Halsted St., Suite 202
East Orange, NJ 07018
973-395-1166
Assemblyman – Assembly Majority Leader
The Hon. Joseph Cryan
985 Stuyvesant Ave.
Union, NJ 07083-6909
908-624-0880
Assemblyman – Budget Chair
The Hon. Louis Greenwald
1103 Laurel Oak Rd., Suite 142
Vorhees, NJ 08043
856-435-1247
Governor
The Hon. Chris Christie
State House
P.O. Box 001
Trenton, NJ 08625
609-292-6000
Lt. Governor
The Hon. Kim Guadagno
State House
P.O. Box 001
Trenton, NJ 08625
609-292-6000
Treasurer
Andrew Sidamon-Eristoff
State Treasurer
125 West State St., Box 002
Trenton, NJ 08625-0002
609-292-3078
Posted 3 April, 2010 in NJ News
Governor Christie has unveiled a fiscal 2011 budget that would eliminate the film production and digital media production tax credits in fiscal 2011. Current funding for the transferable tax credits are $10 million and $5 million, respectively. A review of the effectiveness of the tax credits in creating permanent, full-time jobs will be evaluated during the year.
Posted 31 January, 2010 in NJ News
http://www.njbiz.com/article.asp?aID=80137
Posted 22 December, 2007 in NJ News
NEW JERSEY — The governor “conditionally” vetoed the legislation previously passed which would increase the annual size of the program from $10 million to $30 million.. All sides are currently attempting to work a compromise position that will improve the status so that NJ can be more competitive with surrounding programs
Posted 30 September, 2007 in NJ News
New Jersey is luring moviemakers with some big tax incentives
Sunday, September 30, 2007
BY ABBY GRUEN
Newhouse News Service
You can read New Jersey ’s future in the stars. Stars like Brad Pitt, Bruce Willis, Kevin Bacon, Angelica Huston, Matthew Broderick and Paul Giamatti, all of whom have worked on film productions here this year.
Moviemaking has come back to New Jersey in a big way because of a new 20 percent tax credit program, and aggressive outreach by the state’s film commission.
New Jersey , like dozens of other states that have recently started offering generous tax incentives, wants to host filming projects because they generate millions of dollars in economic activity with little effect on the state’s infrastructure, said Steven Gorelick, associate director of the New Jersey Motion Picture and Television Commission.
The appeal of New Jersey extends beyond lower taxes. It benefits by its location next door to New York City ’s media and production companies; its experienced work force; and by local specialized vendors, such as ARRI of Secaucus, which is one of the largest suppliers of lights and cameras to the industry.
“This is the first full year the 20 percent tax credit has been in effect and the interest has been through the roof,” Gorelick said. “Last year, 941 productions spent $92million in the state.”
New Jersey has joined a rush of states, more than 35, that have either passed or enhanced existing tax credits in the past five years, according to the Motion Picture Association of America.
New York City began to offer 15 percent filming credits, using a 5 percent contribution from the city on top of 10 percent from New York state, in 2005. New Jersey and Connecticut followed the next year with 20 percent and 30 percent tax credit programs.
GARDEN STATE
“A single production, such as ‘Be Kind, Rewind,’ a Jack Black comedy, spent just under $10million in the state in an eight-week period last fall.” Gorelick said. “And when ‘Law and Order: Special Victims Unit’ recently shot 14 episodes, they spent $24million in the state.”
Tax credit programs are thought to generate economic activity equivalent to three times the production company’s expenditures, said Steven Katz, co-founder of the Center for Entertainment Industry Data and Research in Los Angeles .
This summer, Lori Keith Douglas produced an HBO movie in New Jersey called “Taking Chance,” the true story of a Marine lieutenant colonel who escorts the body of a 19-year-old private killed in Iraq to his hometown in Wyoming .
“This was my first foray into shooting an entire movie in New Jersey ,” said Douglas who also produced the movie “The Namesake.” “We could have done this in and around Philadelphia , or in and around Baltimore , but we wanted to get into production really quickly without having to scout a lot of states.”
Scenes that actually took place in other parts of the country were filmed in a home in West Caldwell; a VFW hall in Fairfield; Bergen Community College in Paramus; Newark Liberty International Airport; and Kean University in Union.
“The beauty of New Jersey has always been that there are a lot of different looks in the zone,” said Douglas, referring to an industry term used in determining overtime charges for union crew based on proximity to New York City . “You can have beautiful suburban houses, an urban environment, an airport, schools and churches. Plus, a lot of the crew lives in New Jersey and always has. It’s great when they can sleep in their own beds, as well as our lead actor and director, who live in the city.
“We employed 150 for this production, maybe 30 to 50 were from New Jersey ,” said Douglas, who also lives in New York City . “We bought food; set dressings; rented and bought materials and equipment; we rented vehicles; hired extras and spent as much as we could here.”
More than 350 extras were hired for the film at an open call at Bloomfield College .
THE COLOR OF MONEY
“I’ve been in casting for four years and since the tax breaks, projects that used to film in Toronto and elsewhere are now filming around here,” said David Waldron, a senior casting associate for Grant Wilfley Casting in New York City , which handled the “Taking Chance” casting. “Now, at busy times like ‘pilot season’ in March, we are scrambling to find people.”
The professional services offered by the New Jersey Motion Picture and Television Commission give the state an edge with producers. The film commission has five full-time and one part-time staff members who assist producers in finding locations and personnel for their projects and troubleshoot during the entire length of the project.
Currently, the state has a $10million cap on the tax credits that can be allocated in any one year as well as a requirement that each production spend at least 60 percent of their budget in New Jersey . The film commission has already reached the cap for this fiscal year.
The state legislature passed a bill this summer to lower the 60 percent requirement to 50 percent; raise the cap to $30million of total tax credits allocated per year, from $10million, and to combine “certain digital media content” with “film production expenses” for the first time.
” New Jersey has been at the forefront of tax incentives from the start,” said Vans Stevenson, senior vice president of state government affairs, for the Motion Picture Association of America, “and if the governor approves adding digital media, it will continue to take a forward, visionary approach.”
The governor has not signed the bill into law yet, and may not. No action is required until the senate is back in session in November, said Brendan Gilfillan, a spokesperson for Gov. Jon Corzine, who said the governor has concerns about the cost, and whether the state would get an appropriate return on investment in terms of job creation.
In the meantime, the film commission is keeping its fingers crossed, because some productions that might like to film in New Jersey may not be able to wait until more tax incentives become available in two years.
“We are hopeful that the legislation will be signed into law because we have a lot of customers for it,” Gorelick said. “It will generate a lot of film productions for the state.”
© 2007 The Times of Trenton
© 2007 NJ.com All Rights Reserved.
« Previous
|
