Earlier today Governor Murphy signed a bill to expand New Jersey’s film tax credit program. The legislation raises the annual spending cap for film tax credits from $75 million to $100 million and extends the program until July 1, 2028. In response to the bill signing, New Jersey Policy Perspective (NJPP) releases the following statement.

Sheila Reynertson, Senior Policy Analyst, NJPP:

“It’s disappointing to see state lawmakers get starry-eyed over an industry that isn’t likely to grow the state’s economy. The hope that more film credits will turn New Jersey into a major production hub is just not backed up by the research, mostly because the jobs created in and adjacent to the film and TV industry are overwhelmingly temporary. Regardless of the level of assets and infrastructure that exist for the industry, the state will always be stuck in a race to the bottom with other states, using costly tax credits to rent jobs that will leave once a better deal is offered.

“Film tax credits simply do not generate enough tax revenue or economic activity to offset their costs. The high price of these tax breaks, combined with the short-term nature of the jobs they bring, make film tax credits a poor use of state resources. New Jersey would be better off investing in assets already proven to drive economic growth, like job training, higher education, and transit infrastructure.”

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