N.J. Admin. Code § 19:31T-1.4

Current through Register Vol. 56, No. 12, June 17, 2024

Section 19:31T-1.4 - Application submission requirements

(a) A completed application for film tax credits shall include:

1. A preliminary budget for the film project with a breakout of projected costs, including pre-production costs and post-production costs;

2. A breakout of projected total film production expenses, excluding pre-production costs, to be incurred, pursuant to N.J.A.C. 19:31T-1.3(a)1, for services performed and goods purchased through vendors authorized to do business in New Jersey;

3. A breakout of projected qualified film production expenses, pursuant to N.J.A.C. 19:31T-1.3(a)2, in New Jersey;

4. For applications filed before July 2, 2021 (the effective date of P.L. 2021, c. 160), a breakout of projected costs, including pre-production and post-production costs, to be incurred, pursuant to N.J.A.C. 19:31T-1.6(h)2 or 3, for services performed and tangible personal property purchased through a vendor whose primary place of business is located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem County; and for applications filed on or after July 2, 2021 (the effective date of P.L. 2021, c. 367), a breakout of projected costs, including pre-production and post-production costs, to be incurred, pursuant to N.J.A.C. 19:31T-1.6(a)2 for services performed and tangible personal property purchased for use at a sound stage or other location that is located in the State within a 30-mile radius of the intersection of Eighth Avenue/Central Park West, Broadway, and West 59th Street/Central Park South, New York, New York;

5. A description of the film project, which must include:

i. A plot summary;

ii. The genre and subject matter;

iii. The anticipated film rating, if applicable;

iv. The names of principals and actors; and

v. The location(s) for filming;

6. The filming schedule;

7. The anticipated or actual dates of commencement and completion of principal photography and total film production expenses;

8. If the applicant is a partnership or limited liability company, a list of members or owners applying for a tax credit pursuant to this program, including the percentage of ownership interest of each;

9. If the applicant intends to participate in the bonus amount of tax credit for a diversity plan pursuant to N.J.A.C. 19:31T-1.6( l)1, satisfaction of the requirements at N.J.A.C. 19:31T-1.6( l)1i, ii, iii, and iv; and for the increased bonus amount of tax credits pursuant to N.J.A.C. 19:31T-1.6( l)2, satisfaction of the requirements at N.J.A.C. 19:31T-1.6( l)2i through iii;

10. If the film production involves an eligible reality show, a description of the capital investment, which shall be no less than $ 3,000,000, and a description of the production facility, which shall be no less than 20,000 square feet of real property, respectively, within a designated enterprise zone established pursuant to the New Jersey Urban Enterprise Zones Act, N.J.S.A. 52:27H-60 et seq., or a UEZ-impacted business district established pursuant to N.J.S.A. 52:27H-66.2, and an executed letter of interest, lease, sublease, deed, or purchase contract;

11. A completed legal questionnaire disclosing all relevant legal matters in accordance with the Authority debarment and disqualification rules at N.J.A.C. 19:30-2;

12. Submission of a tax clearance certificate;

13. A list of all the development subsidies, as defined at N.J.S.A. 52:39-1 et seq., that the developer is requesting or receiving, the name of the granting body, the value of each development subsidy, and the aggregate value of all development subsidies requested or received;

14. If the applicant is seeking a film tax credit as a studio partner:

i. A certification from the studio partner that it remains eligible as a studio partner; and

ii. If the applicant is not the designated studio partner, one of the following:

(1) Written verification that the applicant is a member of the studio partner's group pursuant to N.J.S.A. 54:10A-4.11; or

(2) For "works made for hire" for the studio partner:

(A) Documentation evidencing that the applicant is principally engaged in the production of film and other commercial audiovisual product;

(B) An executed contract with the studio partner to perform film production services for the film on the studio partner's behalf such that the studio partner controls the film or product during preproduction, production, and post-production and all results and proceeds of such services constitute, from the moment of creation, "works made for hire" for the studio partner pursuant to the provisions of the Federal Copyright Act of 1976, 17 U.S.C. §§ 101 et seq.; and

(C) Opinion of counsel that the executed contract with the studio partner satisfies the criteria at (a)14ii(2)(B) above;

15. If the applicant is seeking a film tax credit as a film-lease production company:

i. A certification from the film-lease partner facility that it remains eligible as a film-lease partner facility;

ii. Filming schedule including all locations in and out of the State of New Jersey;

iii. An executed lease, license, or letter of intent to occupy production space in a film-lease partner facility during the required principal photography shoot days at the facility; and

iv. If the applicant is not the film-lease production company, one of the following:

(1) Written verification that the applicant is a member of the film-lease production company's combined group;

(2) Any documentation evidencing the film-lease production company's ownership interest in the applicant and any agreement evidencing the film-lease production company's operational role in the film production; or

(3) For "works made for hire" for the film-lease production company:

(A) Documentation evidencing that the applicant is principally engaged in the production of film and other commercial audiovisual product;

(B) An executed contract with the film-lease production company to perform film production services for the film on the film-lease production company's behalf such that the designated film-lease production company controls the film or product during pre-production, production, and post-production, and all results and proceeds of such services constitute, from the moment of creation, "works made for hire" for the New Jersey studio partner pursuant to the provisions of the Federal Copyright Act of 1976, 17 U.S.C. §§ 101 et seq.; and

(C) Opinion of counsel that the executed contract with the studio partner satisfies the criteria at (a)14ii(3)(B) above; and

16. Any other necessary and relevant information as determined by the Authority for a specific application.

(b) A completed application to be designated as a studio partner shall include:

1. An executed deed, lease, sublease, purchase contract for the production facility, or letter of intent with a governmental authority for the purchase of property for the purpose of developing a production facility. The executed lease or sublease shall have a term that extends for the commitment period based on the anticipated commencement of the commitment period;

2. A detailed floor plan or, if the production facility comprises multiple buildings, a site plan, indicating the uses of each area, the total square footage of the production facility, and the square footage of any backlot;

3. Evidence, including, but not limited to, a certification, that the applicant has made a commitment to produce films or commercial audiovisual products in New Jersey;

4. Except for an applicant that will execute a purchase contract with a governmental authority, preliminary site plan approval or temporary certificate(s) of occupancy for the production facility, an adopted redevelopment plan by a municipality or municipalities which contemplates the development of the production facility, or an executed redevelopment agreement with a municipality or municipalities for the development of the production facility;

5. A completed legal questionnaire disclosing all relevant legal matters in accordance with the Authority debarment and disqualification rules at N.J.A.C. 19:30-2;

6. Submission of a tax clearance certificate; and

7. Any other necessary and relevant information as determined by the Authority for a specific application.

(c) A completed application to be designated as a film-lease partner facility shall include:

1. An executed lease, sublease, deed, or purchase contract for the production facility. The executed lease or sublease shall have a term that extends for the minimum five-year period;

3. Preliminary site plan approval or temporary certificate(s) of occupancy for the production facility, an adopted redevelopment plan by a municipality or municipalities which contemplates the development of the production facility, or an executed redevelopment agreement with a municipality or municipalities for the development of the production facility;

4. Written acceptance by the applicant of the acquisition by the Authority, at the Authority's discretion, of equity in the production facility, on commercially reasonable and customary terms and conditions determined by the Authority and the film-lease partner facility;

5. A completed legal questionnaire disclosing all relevant legal matters in accordance with the Authority debarment and disqualification rules at N.J.A.C. 19:30-2;

6. Submission of a tax clearance certificate; and

7. Any other necessary and relevant information as determined by the Authority for a specific application.

(d) A completed application for digital media tax credits shall include:

1. A preliminary or actual budget demonstrating the minimum required total digital media content production expenses pursuant to N.J.A.C. 19:31T-1.3(b)1i;

2. If applicable pursuant to N.J.A.C. 19:31T-1.6(b)1i or 2i, a breakout of qualified digital media expenses for services performed and tangible personal property purchased through a vendor whose primary place of business is located in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem County;

3. A breakout of projected digital media content production expenses for wages and salaries paid to full-time or full-time equivalent employees in New Jersey;

4. The total number of current full-time or full-time equivalent digital media employees, plans for anticipated new full-time or full-time equivalent employees, and current non-digital media full-time or full-time equivalent employees;

5. A detailed description of the digital media content;

6. If the digital media content relates to any film, a list of all such films;

7. If the applicant intends to participate in the bonus amount of tax credit for a diversity plan pursuant to N.J.A.C. 19:31T-1.6( l)1, satisfaction of the requirements pursuant to N.J.A.C. 19:31T-1.6( l)1i, ii, iii, and iv; and for the increased bonus amount of tax credits pursuant to N.J.A.C. 19:31T-1.6( l)2, satisfaction of the requirements at N.J.A.C. 19:31T-1.6( l)2i, ii, and iii; and

8. Any other necessary and relevant information as determined by the Authority for a specific application.

N.J. Admin. Code § 19:31T-1.4

Administrative correction.
See: 51 N.J.R. 173(b).
Amended by R.2020 d.007, effective 1/6/2020.
See: 51 N.J.R. 1256(a), 52 N.J.R. 58(b).
In (b)1, inserted "and goods purchased through vendors authorized to do business in New Jersey".
Special amendment, R.2024 d.022, effective 2/26/2024 (to expire 2/22/2025).
See: 56 N.J.R. 491(a),.
Rewrote the section.

Recodified from 19:31-21.4 56 N.J.R. 807(a), effective 5/6/2024