Incentives Spotlight: The Garden State
New York has long hogged the East Coast spotlight. But its scrappier neighbor across the Hudson has been quietly building something remarkable.
Can you guess which US state saw the biggest percentage growth in film production in 2025?
If you guessed New Jersey, you’re right. The state boasted a 75% increase in productions year-over-year. And that’s not a fluke.
A generous, recently extended incentive, world-class studio infrastructure, and proximity to one of the world’s greatest cities make the Garden State one of the most compelling production destinations in the country.
Here’s what you need to know.
The Incentive at a Glance
New Jersey’s Film and Digital Media Tax Credit Program offers a generous transferable credit. The headline numbers:
35% credit on qualified wage and salary payments statewide
30% credit on qualified expenses incurred for goods and services (non-payroll) at locations within a 30-mile radius of the corner of Eighth Avenue and West 59th Street in Manhattan (that’s Columbus Circle in NYC, and yes, they really did define it that precisely)
35% credit on qualified expenses incurred for goods and services (non-payroll) outside the 30-mile radius of Columbus Circle, NYC, to incentivize productions to venture beyond the NYC metro corridor
Up to 40% for Designated Studio Partners and Film-Lease Facility Partners (more on them below)
35-40% for post-production: 35% for qualifying independent post-production companies, rising to 40% for work performed at a New Jersey film-lease production facility or through a Studio Partner
The credit is transferable, meaning productions that can’t use it can sell it — a significant advantage. And a bonus for Studio Partners (and only Studio Partners): as of January 1, 2026, the state will also purchase unused credits at 95 cents on the dollar (subject to annual caps: $80M in FY2026, scaling to $200M annually from FY2029 onward), offering productions a guaranteed floor on the credit’s value.
Show Me the Money: Program Funding
The program is well-funded, with a total of $430 million in annual allocations across three buckets:
$150 million reserved for New Jersey Studio Partners
$150 million reserved for New Jersey Film-Lease Production Companies
$100 million for all other taxpayers
$30 million for Digital Media (including post production)
Credits are awarded on a first-come, first-served basis, so timing your application matters.
And here’s the big headline from late 2025: in November, Governor Murphy signed legislation extending the program’s eligibility period by ten years — from 2039 all the way to July 1, 2049. That’s 23+ more years of certainty for productions and studios making long-term commitments to the state. In the incentives world, that kind of longevity is extraordinarily rare — and extremely valuable.
Who Qualifies?
New Jersey’s incentive covers film and digital media productions — primarily scripted content. To qualify, productions generally must meet one of two thresholds:
At least 60% of total film production expenses (excluding post-production) are incurred through vendors authorized to do business in New Jersey
-OR-
Qualified film production expenses exceed $1 million per production
Productions must include a “Filmed in New Jersey” statement or logo in the end credits and commence principal photography within 180 days of application. Additionally, productions must withhold 6.37% from all payments to independent contractors and loan-out companies providing services used directly in the production, so be sure to build that into your budget from the start.
Reality TV? Special Rules Apply
Unscripted producers, listen up — because the details here are tricky.
Reality shows are generally ineligible for NJ’s Film Tax Credit Program.
However, they can qualify if they meet one of these conditions:
At least 60% of total film production expenses (excluding post-production costs) are incurred through New Jersey vendors
-OR-
Qualified expenses exceed $1 million per production
There’s also one more hoop to jump through: the production must come with a firm order of at least four episodes from a major linear network or streaming platform, already greenlit and set to air. Spec shoots and independent passion projects need not apply.
The bottom line for unscripted producers: it’s possible, but the bar is higher. Budget accordingly.
The Studio Partner Advantage
One of New Jersey’s most powerful differentiators is its Studio Partner designation — available to production companies that have site control of a production facility with a minimum 250,000 square feet of space under a term of at least ten years. Designated Studio Partners and Film-Lease Facility Partners enjoy:
An enhanced base credit of up to 40%
An additional 4% credit on qualified expenses incurred on or after July 1, 2025 (a recent legislative sweetener that takes an already generous rate even higher)
That enhanced rate has already proven transformative. Netflix Co-CEO Ted Sarandos told a U.S. Senate subcommittee that since New Jersey’s incentive passed, Netflix has redirected eleven productions back to the Garden State — including seven that had been heading to the UK.
The Netflix Factor: Fort Monmouth
Speaking of Netflix: the streamer isn’t just shooting in New Jersey. It’s building there.
Netflix Studios Fort Monmouth is a $1 billion, 290+-acre production campus rising from the grounds of a former U.S. Army base in Oceanport and Eatontown. When completed (projected 2028), it will feature twelve state-of-the-art soundstages totaling nearly 500,000 square feet — making it Netflix’s second-largest production facility in the world, behind only its ABQ Studios in New Mexico.
The economic ripple effects are staggering. The project is expected to create up to 3,500 construction jobs during the build phase and 1,400 permanent positions once operational. Over the next 20 years, it’s projected to generate an estimated $3.8 to $4.6 billion in economic activity in New Jersey — a stunning return on the state’s incentive investment.
It’s also proof that when you build the infrastructure and back it with a stable, long-term incentive, the industry follows.
Netflix was already rolling cameras in the Garden State before the studio even opens. Productions recently underway include Here Comes the Flood, starring Denzel Washington and Robert Pattinson, with over 500 workers on and off-screen.
What Changed in 2025 (and What Didn’t)
A couple of notable updates for productions applying under the revised program:
The Diversity Incentive is now the Crew Hire Incentive, offering a 4% uplift if 25% of the production’s crew, talent, and extras hired are from a list of ~200 economically disadvantaged communities.
The 95% buyback is new and significant. For original applications approved by NJEDA on or after January 1, 2026, the state Director is now required to purchase any unused tax credits at 95% of face value, subject to annual caps. For productions planning to sell their credit rather than use it, this provides meaningful price certainty that many other jurisdictions simply don’t offer.
The extension to 2049 is a game-changer for long-term planning. Productions and studios can now build multi-year strategies around New Jersey with confidence that the program will be there to support them.
Don’t Overlook: Sales Tax Savings
Productions can also capture an additional 6.625% savings on New Jersey sales tax. Certain tangible property purchased and used directly in the production of film and television is exempt from NJ sales tax. Plus: long-term hotel stays exceeding 90 days may also be sales-tax-exempt — a meaningful savings on lengthy location shoots.
The Fine Print: Budget for These Costs
As we’ve covered in our Hidden Costs of Production Incentives post, New Jersey’s incentive comes with a range of administrative fees that can shave $1,300 to $65,000 off your incentive, depending on qualifying spend. These include an application fee, an approval fee, an issuance fee, and a credit transfer fee. Build them into your budget upfront to avoid a surprise after you’ve already committed to the location.
The application process also requires that you consult with an NJEDA Program Analyst before submitting. Contact them at (844) 965-1125 or CustomerCare@njeda.gov, or apply directly at programs.njeda.com.
The Bottom Line
New Jersey has stopped trying to be a cheaper alternative to New York and started building an identity all its own. With a generous, transferable credit of up to 40%, a billion-dollar studio rising from the Jersey Shore, a program now locked in until 2049, and a new state guarantee to buy back credits at 95 cents on the dollar, the Garden State is making a compelling case to producers thinking beyond Burbank or beyond the border.
The 75% production surge in 2025 wasn’t an accident. It was the result of years of smart policy combined with a greater awareness from studios, networks, and filmmakers of the State's large, experienced workforce and wide variety of “lookalike locations” in a geographically compact area; a great incentive; a film commission proactively engaged in streamlining statewide permitting; and a mature but rapidly expanding infrastructure of stages, wardrobe, lumber mills, equipment rental facilities, and more. And the momentum is only building.
For full program details, visit www.njeda.gov/film or the NJ Motion Picture & Television Commission.
Filming in New Jersey?
Don’t Leave Money on the Table.
New Jersey’s incentive is generous — but it’s also complex.
Between the 60% vendor spend threshold (when qualified spend < $1M), the withholding requirements, the tiered fee structure, and the specific rules for digital media and post, there are plenty of opportunities to either maximize what you receive - or accidentally leave qualifying expenses on the floor.
Incentiviiz is an AI-powered incentives management platform built to simplify the complicated incentives application process and maximize your return.
And they know New Jersey…because they’re based there!
Simply link Incentiviiz to your existing cloud-based file management system (Dropbox, Google Drive, and more), and it gets to work, automatically identifying and extracting qualifying expenses, tracking your progress toward minimum spend thresholds, flagging missing receipts or vendor details, and keeping you on top of application milestones and deadlines.
The platform was built by Shawn Hamilton, a former production accountant with stints at Amazon, Viacom, and more alongside the team behind the cloud-based production management system Conduiit — which is already used on productions for Netflix, HBO, Apple+, and Facebook Watch. They know this world.
Some users have reported boosting their incentives payout by 6-10% by using Incentiviiz to uncover qualifying expenses they otherwise would have missed. At that rate, it more than pays for itself. And speaking of paying for it: there’s no upfront cost. Incentiviiz retains a small single-digit percentage of the incentive collected — meaning it’s zero risk, all reward.
Productions can even borrow against their anticipated incentive at preferred rates through the platform’s banking partner, with funds dispersed as needed — a significant cash flow advantage when you’re in production.
Want to give Incentiviiz a try on your next New Jersey production? Drop founder Shawn Hamilton a line at shawn@conduiit.com — and tell him Carrie sent you.
Film commissions: Brag about your own incentive in our next Jurisdiction Spotlight.
Just reach out at carrie@carrieregan.com, or via our website.
Don’t miss a single issue of Production Incentives Insider. Smash the subscribe button below.