CHIVUKULA/GREENWALD/GORDON BILL TO PROVIDE DIGITAL MEDIA TAX CREDIT PASSES ASSEMBLY

CHIVUKULA/GREENWALD/GORDON BILL TO PROVIDE DIGITAL MEDIA TAX CREDIT PASSES ASSEMBLY

(TRENTON) - The Assembly today approved gubernatorial changes to legislation Assemblymen Upendra Chivukula, Louis D. Greenwald, and Bob Gordon sponsored to provide a corporate business tax credit for the production of digital media content in the state.

Under the measure (S-2526/A-4250) digital media content would include data or information intended for use over the Internet as well as in reformatting text, graphics, photographs, animation, sound and video, and electronic gaming content.

"New Jersey must bolster its position as a leader in high-tech industries and provide a greater incentive for business to invest in our state," said Chivukula (D-Somerset). "A digital media content  tax credit would bring more cutting-edge jobs and technology to the state."

Recognizing the growing importance of new media, this measure would provide a corporate business tax credit of up to $5 million annually for qualifying digital media. The existing annual $10 million in tax credit for qualifying companies for film production would also now include digital  media.

To qualify for the tax credit for digital media, a company would need to incur at least $2 million dollars of its total production costs in New Jersey and generate in-state employment. Eligible companies would receive a tax credit of up to 20 percent of the expenses.

As the information-age economy changes, so must the state's tax policies," said Greenwald (D-Camden). "A more enlightened tax policy would sharpen the state's competitive edge in this expanding economic sector and allow New Jersey to stay at the forefront of the digital industry."

"The tax credit would help to jumpstart New Jersey's digital media industry and provide film and digital media production companies with economic incentives to do business in our state," said Gordon (D-Bergen). 

Similar tax credits were enacted in 2006 to encourage film and media production in the state. The Chivukula/Greenwald/Gordon measure would expand the credit program to include digital media.

The bill previously passed both legislative houses but was conditionally vetoed by Governor Jon S. Corzine.

The Assembly passed the bill again 70 to 9 with zero abstentions after incorporating the Governor's recommended changes. It now goes to the Governor for his signature.

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