Film Tax Credit Expansion is a Bad Deal for New Jersey

NJPP & American Economic Liberties Project (AELP): The film tax credit program continues to be a bad investment for New Jersey.

Published on Jun 26, 2024 in Tax and Budget

Today the Assembly and Senate budget committees approved yet another expansion to the film and television tax credit program, making it easier for companies to receive credits and allowing film production studios to claim Pennsylvania workers as New Jersey film expenses. Despite overwhelming evidence that film tax credit programs offer pennies on the dollar in benefits for their costs to the state, this bill further loosens the strings on these credits. In response to this proposed legislation, New Jersey Policy Perspective and the American Economic Liberties Project issue the following statement.

Pat Garofalo, State and Local Policy Director, American Economic Liberties Project:

“The proposed changes to New Jersey’s expensive and wasteful film tax credit program make a bad deal even worse. Many of the film production jobs already go to transient workers from out-of-state. Now, this bill would let production companies claim out-of-state Pennsylvania workers — who pay Pennsylvania income taxes — as though they were New Jersey workers, further blunting any economic benefit to the state.”

Peter Chen, Senior Policy Analyst, NJPP:

“Diverting tax credits focused on affordable housing to profitable film production studios undermines their original intent and minimizes the public benefits. As each year passes, the film tax credit program continues to be a bad investment for New Jersey.”

For more information on the shortcomings of New Jersey’s film tax credit program, see NJPP and AELP’s joint analysis on film tax credit expansions.

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