| Photo by Glenn Carstens-Peters on Unsplash
TRENTON, NJ—Netflix Inc. is now a Studio Partner of the New Jersey Economic Development Authority (NJEDA), which allows the media company to access expanded benefits under the state’s Film and Digital Media Tax Credit program.
Under the designation agreement, Netflix commits to occupy a New Jersey film production facility for at least ten years. It is potentially eligible for a 40 percent base tax credit for qualified production expenses on future New Jersey film projects.
“The expanded Film and Digital Media Tax Credit program, coupled with strong state support, make a compelling case for the return of major production companies to New Jersey – the birthplace of film,” said Governor Phil Murphy. “With Netflix leading the way, the creation of new, world-class studios has solidified New Jersey standing as a national leader in film and television production. These substantial investments will create thousands of good-paying jobs, support small businesses and vendors, and stimulate the regional economy.”
In January 2023, Netflix entered into a Purchase and Sale and Redevelopment Agreement with the Fort Monmouth Economic Revitalization Authority (FMERA) to purchase 292 acres and develop over one million square feet of studio production and support space at the former Fort Monmouth. The state-of-the-art production studio campus will include 12 soundstages, backlot areas, an office building, and other production support facilities. Netflix designated over 280,000 square feet of production space included in the project as Studio Partner Facility space. Netflix plans to open the entire facility in 2028.
“With the advantages of a generous Film and Digital Media Tax Credit program and today’s designation, Netflix is poised to grow its presence in New Jersey, revitalizing local communities and providing countless exciting career opportunities,” said NJEDA Chief Executive Officer Tim Sullivan.
Founded in 1997, Netflix is a leading entertainment services company offering subscription video-on-demand and over-the-top streaming services for movies and television shows. In 2013, Netflix established its original content division, and its productions, such as “Stranger Things,” “Black Mirror,” and “The Irishman,” have garnered critical acclaim and won numerous awards.
Total production spending in New Jersey has surged since 2018 when Governor Murphy reinstated the Film and Digital Media Tax Credit program, funded through 2039. The program provides a tax credit of up to 35 percent of qualified film production expenses, including a Diversity Tax Credit of up to four percent for productions that employ the services of women or people of color.
The program was expanded in 2021, increasing the annual allocation to $400 million and granting the NJEDA authority to designate eligible film production companies as Studio Partners, which must commit to occupying large studio developments in New Jersey that can potentially have significant economic impacts. Studio Partners have access to a separate $150 million pool of incentives under the Film and Digital Media Tax Credit program, which allows a production company to capture additional above-the-line salaries and wages as part of its tax credit award.
Netflix Co-CEO Ted Sarandos thanked the Murphy administration for bringing the project to fruition, saying it takes them one step closer to making New Jersey an international center for studio production.
“Netflix is excited to be a part of it,” he said.
–With Jay Domingo/PDM
