Bill Text: NJ A2256 | 2016-2017 | Regular Session | Amended
Bill Title: Establishes the New Jersey Film and Television Project and Employment Incentive Program.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2017-01-30 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A2256 Detail]
Download: New_Jersey-2016-A2256-Amended.html
ASSEMBLY, No. 2256
STATE OF NEW JERSEY
217th LEGISLATURE
INTRODUCED JANUARY 27, 2016
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Assemblywoman ELIANA PINTOR MARIN
District 29 (Essex)
Co-Sponsored by:
Assemblymen Chiaravalloti and Rible
SYNOPSIS
Establishes the New Jersey Film and Television Project and Employment Incentive Program.
CURRENT VERSION OF TEXT
As reported by the Assembly Commerce and Economic Development Committee on October 27, 2016, with amendments.
An Act establishing the New Jersey Film and Television Project and Employment Incentive Program, supplementing P.L.1945, c.162 and Title 54A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. (1) A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to the value of 25 percent of qualified film and television project costs.
(2) For a taxpayer to qualify for the credit allowed pursuant to this section, the taxpayer shall comply with the requirements of this paragraph.
(a) 1[Qualified] A qualified1 film or television 1[projects] project1 shall have an annual or seasonal operating budget of at least $1,000,000.
(b) At least fifty percent of a project's qualified film and television project costs shall be studio based.
1(c) Qualified film and television projects shall not include reality programs, documentaries, news programs, current event programs, instructional videos, sports shows, sporting events, interview or talk shows, commercial advertisements, and music videos.1
b. (1) The credit shall be applied to the taxpayer's liability for the second privilege period beginning after the qualified film or television project commences. Credit applied pursuant to this section and credited pursuant to R.S.54:49-15 in excess of liability shall be treated as a refund of overpayment of tax, except that interest pursuant to section 7 of P.L.1992, c.175 (C.54:49-15.1) shall not apply.
(2) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period shall be as prescribed by the director.
(3) A taxpayer shall not be granted a credit pursuant to this section for qualified film and television project costs included in the calculation of another credit against any State tax or a grant.
(4) The director is authorized to direct basis adjustments for property associated with qualified film and television project costs for which a credit is allowed pursuant to this section.
(5) (a) For each State fiscal year, the credits allowed pursuant to this section and section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not exceed $30,000,000.
(b) At least one-third of the amount of the credits allowed for a State fiscal year pursuant to this paragraph (5) shall be 1[issued] prioritized1 for projects based in counties with a percentage of persons below the poverty level of no less than eight percent, per capita annual money income of $35,000 or less, and annual retail sales not exceeding $6,000,000,000. The data for this calculation shall be derived from the most recent version of the U.S. Census Bureau's State and County QuickFacts publication.
c. As used in this section:
"Below-the-line expense" means budget expenses allocated for costs other than 1principal1 actors, producers, writers or directors 1, and incurred within New Jersey1.
"Qualified film project" means the production of a 1[nationally distributed] feature1 film 1[with its primary studio] by a production company1 operating 1primarily1 from 1[its primary and fixed set] fixed sets, locations, and studios1 in New Jersey 1for national distribution1.
"Qualified television project" means the production of a 1[nationally televised program with its primary studio] television program by a production company1 operating 1primarily1 from 1[its primary and fixed set] fixed sets, locations, and studios1 in New Jersey 1for national distribution1.
"Qualified film and television project costs" means below-the-line expenses associated with the 1[performance] production1 of a qualified film or television project in New Jersey that qualify as trade or business expenses for purposes of section 162 of the federal Internal Revenue Code (26 U.S.C. s.162) or a capitalizeable expense for the acquisition of property used in a trade or business or for the production of income within terms of section 167 of the federal Internal Revenue Code (26 U.S.C. s.167).
1"Television program" means an episode of a dramatic or scripted television series, a pilot presentation, a television movie, or a miniseries.1
2. a. (1) A taxpayer shall be allowed a credit against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to the value of 25 percent of qualified film and television project costs.
(2) For a taxpayer to qualify for the credit allowed pursuant to this section, the taxpayer shall comply with the requirements of this paragraph.
(a) 1[Qualified] A qualified1 film or television 1[projects] project1 shall have an annual or seasonal operating budget of at least $1,000,000.
(b) At least fifty percent of a project's qualified film and television project costs shall be studio based.
1(c) Qualified film and television projects shall not include reality programs, documentaries, news programs, current event programs, instructional videos, sports shows, sporting events, interview or talk shows, commercial advertisements, and music videos.1
b. (1) The credit shall be applied to the taxpayer's liability for the second taxable year beginning after the qualified film or television project commences. Credit applied pursuant to this section in excess of liability shall be treated as a refund of an overpayment of tax in accordance with N.J.S.54A:9-7, except that interest pursuant to subsection (f) of that section shall not apply.
(2) The order of priority of the application of the credit allowed pursuant to this section and any other credits allowed against the tax imposed pursuant to the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., for a taxable year shall be as prescribed by the director.
(3) A taxpayer shall not be granted a credit pursuant to this section for qualified film and television project costs included in the calculation of another credit against any State tax or a grant.
(4) The director is authorized to direct basis adjustments for property associated with qualified film and television project costs for which a credit is allowed pursuant to this section.
(5) (a) For each State fiscal year, the credits allowed pursuant to this section and section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not exceed $30,000,000.
(b) At least one-third of the amount of the credits allowed for a State fiscal year pursuant to this paragraph (5) shall be 1[issued] prioritized1 for projects based in counties with a percentage of persons below the poverty level of no less than eight percent, per capita annual money income of $35,000 or less, and annual retail sales not exceeding $6,000,000,000. The data for this calculation shall be derived from the most recent version of the U.S. Census Bureau's State and County QuickFacts publication.
(6) (a) A business entity that elects to be treated as a partnership for federal income tax purposes shall not be allowed a credit directly pursuant to this section, but a taxpayer partner shall be allowed the amount of a partnership's credit associated with the qualified film and television project costs allocated to the taxpayer as partnership expenses.
(b) An S Corporation shall not be allowed a credit directly pursuant to this section, but a taxpayer shareholder shall be allowed the amount of an S Corporation's credit associated with the qualified film and television project costs allocated to the taxpayer as pro rata share of S Corporation expenses.
c. As used in this section:
"Below-the-line expense" means budget expenses allocated for costs other than 1principal1 actors, producers, writers or directors 1, and incurred within New Jersey1.
"Qualified film project" means the production of a 1[nationally distributed] feature1 film 1[with its primary studio] by a production company1 operating 1primarily1 from 1[its primary and fixed set] fixed sets, locations, and studios1 in New Jersey 1for national distribution1.
"Qualified television project" means the production of a 1[nationally televised program with its primary studio] television program by a production company1 operating 1primarily1 from 1[its primary and fixed set] fixed sets, locations, and studios1 in New Jersey 1for national distribution1.
"Qualified film and television project costs" means below-the-line expenses associated with the 1[performance] production1 of a qualified film or television project in New Jersey that qualify as trade or business expenses for purposes of section 162 of the federal Internal Revenue Code (26 U.S.C. s.162) or a capitalizeable expense for the acquisition of property used in a trade or business or for the production of income within terms of section 167 of the federal Internal Revenue Code (26 U.S.C. s.167).
1"Television program" means an episode of a dramatic or scripted television series, a pilot presentation, a television movie, or a miniseries.1
3. This act shall take effect immediately and apply to privilege periods and taxable years beginning on or after the date of enactment.
