Murphy signs law to expand New Jersey’s film tax credit

(The Center Square) – Gov. Phil Murphy signed legislation to expand New Jersey’s film tax credit, but a leading Republican says the governor should focus on tax relief for Main Street businesses.

S-4094/A-6070 bolsters the New Jersey Film & Digital Media Tax Credit Program through an expanded digital media production tax credit. Murphy signed the tax credit into law in July 2018; it was expanded in January 2020.

“This legislation will ensure that our state remains a top destination for some of our country’s most significant film and TV productions,” Murphy, a Democrat, said in a news release.

An Office of Legislative Services (OLS) analysis found the measure could reduce state revenues by about $20 million annually.

However, state Sen. Joe Pennacchio, R-Montville, criticized the governor for signing the bill and pocket vetoing A-4958/S-3740. The vetoed measure would have given a temporary sales and use tax exemption for small businesses to winterize operations.

“Dishing out big bucks to the Hollywood elite may be sexy and applauded by the entertainment world, but it’s a slap in the face to the one-third of businesses that closed their doors during this pandemic,” Pennacchio said in a news release. “These are Murphy’s twisted priorities.

“New Jersey taxpayers deserve more from our Governor, who claims to be ‘done with tax increases,’ but can’t break himself of the old habit,” Pennacchio added.

This article was published by The Center Square and is republished here with permission. Click here to view the original.

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