TRENTON, N.J. — A Senate panel on Thursday advanced legislation aimed at strengthening New Jersey’s arts sector by offering tax credits to production companies staging accredited theater performances in the state.
The bill, sponsored by Senate Republican Leader Anthony M. Bucco (R-25), was approved by the Senate Community and Urban Affairs Committee. It would provide corporation business tax and gross income tax credits to eligible production companies for qualified theater production expenses.
“Our arts organizations play a vital role in strengthening our economy, inspiring creativity, and expanding opportunities for New Jerseyan’s of all ages,” Bucco said. “Providing these tax credits will send a clear message that New Jersey is committed to growing its arts community by helping reduce the financial burdens that too often sway production companies away from bringing their talent here. This is a smart investment that will attract world-class performances to venues like the renowned Mayo Performing Arts Center, support local jobs, and further solidify New Jersey as a premier destination for the arts.”
As amended, the bill would allow production companies to receive tax credits equal to 35% of eligible production and performance expenditures for accredited theater productions performed at qualified facilities in New Jersey.
Eligible costs include design, construction and operational expenses such as sets, special effects, costumes, makeup and accessories; sound, lighting, staging and facility costs; rentals, per diems and accommodations; payroll expenses up to $250,000 per week; certain advertising and public relations costs; and transportation expenses.
The bill requires production companies to seek initial approval from the New Jersey Economic Development Authority, while final approval of tax credits would be made by the state Division of Taxation. The total value of credits awarded each fiscal year would be capped at $10 million.
