Screen Magazine - Index

Screen Magazine - Screen Magazine: Vol. 29, Issue 10 - Index

New Jersey And Film: Perfect Together
From the creators of “The Sopranos” and “Goodfellas” to
“Annie” and “On the Waterfront,” studios and production
companies from across the country have made New
Jersey one of the nation’s leading areas for film production.
Several reasons explain this popularity. First, for such a small
state, New Jersey offers a wide variety of locations that are
connected by a well-developed infrastructure. Location
scouts seeking beaches, military bases, picturesque farms,
gritty urban streets, factories, scenic universities or virtually
any other setting can find whatever they are looking
for within a short distance. Such diversity, proximity and
connectedness have the potential to significantly reduce
travel and production costs. Second, given New Jersey’s
long history of being the destination of choice for many
filmmakers, the state boasts a large number of individuals
and companies offering exceptional production services
and facilities. Third, New York City’s close proximity provides
a wealth of equipment suppliers and local talent, including
experienced actors, performers and crew.
Finally, New Jersey is known for being a production-friendly
state. To broaden this appeal, the state created the New
Jersey Motion Picture & Television Commission in 1978.
Since its inception, the Commission has helped attract
and support over 13,400 feature films, television movies,
television series, music videos, commercials and industrial
and short films. In 2006 alone, the Commission supported
a record 941 projects, including 94 features, four telefilms
and mini-series, and 180 television series and specials. The
many free services that the Commission offers production
companies include:
• Assisting with location scouting through its database of
thousands of pictures, categorized by subject matter and
cross-referenced by county and town.
• Helping secure film locations and necessary permits,
including those for filming, construction, child labor and
use of firearms and explosives.
• Providing advice regarding New Jersey’s new tax credit
program.
• Supporting production companies in finding providers of
specific goods and services, including local crew members
and props.
Runaway Productions:
The Business Of Show Business
Since the creation of the motion picture, the United States
has been the primary location for the production of filmed
entertainment. In recent years, however, this dominance
Cultivating Entertainment In The Garden State
Financial And Production Incentives For Filming In New Jersey
By: Matthew Savare, Esq., John Genz, CPA, MST, and
Christine Peluso, Esq.
has been eroded by foreign countries—such as Canada,
Germany, the United Kingdom, Australia and New Zealand—
offering highly attractive financial incentives to lure producers
to shoot there. Regardless of the scope and budget of the
film, production companies and studios have become more
determined to cut their production costs, and the huge
foreign tax credits, subsidies and tax write-offs offered by
these countries have enticed many filmmakers to shoot
outside the United States.
Such fierce global competition and the concomitant
increase in the number of “runaway productions” forced
the federal government and most of the states to pass their
own incentive programs to lure film and television production
back home. For example, in 2004, the American Jobs
Creation Act was enacted, which permits investors to write
off the costs of “qualified productions” in the year that the
costs are incurred. Similarly, most of our 50 states, including
New Jersey, the District of Columbia and Puerto Rico, have
enacted their own incentive packages, offering everything
from tax credits to grants and rebates.
Matthew Savare practices intellectual property, media, and
entertainment law with Lowenstein Sandler PC. His e-mail is
msavare@lowenstein.com.
John Genz specializes in multi-state and local tax incentives,
research and planning, mergers and acquisitions and the
accounting for income taxes under Financial Accounting
Standard 109. John is Officer in Charge of the State &
Local Tax Group of Amper, Politziner & Mattia. His e-mail is
genz@amper.com.
Christine Peluso is a principal with Tax Credits, LLC, a
company which specializes in the purchase and sale of
Film Credits. Tax Credits, LLC has acted as an advisor to
several other states considering similar tax credit programs
and has been actively involved with suggesting legislation
to improve several states’ film credit programs. Her e-mail is
cpeluso@taxcreditsllc.com
New Jersey’s Tax Credit Program
And Waiver Of Sales And Use Tax
In addition to the reasons cited above, production companies
should consider shooting in New Jersey based on the state’s
financial incentives: a 20 percent tax credit program and a
waiver of sales and use taxes.
Film Tax Credit Incentives
The Garden State allows a production company to
get 20 percent of its qualified film production expenses