Following his incentives for cinema and television, New Jersey Governor Phil Murphy has signed legislation to boost tax credits for digital media production as part of a push to attract new industry to the state.

Murphy established a tax credit program for film and television in 2018 and plans to expand it in 2020. It has boosted production, drawing productions such as West Side Story, The Equalizer, and The Many Saints of Newark to the city. This new law applies the same rules to digital media, which the statute does not define but can include everything from entertainment websites to digital publication to video games. The NBC Universal Digital Media Campus in Englewood Cliffs (where CNBC is headquartered) and Audible, which is owned by Amazon, are two of the state's leading digital firms.

The new legislation increases the amount of tax credits available for digital media content to 30% of qualified spending throughout the state and 35% in selected counties (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem). It also raises the annual cap on tax credits for digital media content production from $10 million to $30 million.

“Digital media projects are just as important to the entertainment industry and economy as film projects, and deserve the same opportunities to grow and thrive in our state,” said State Senator Gordon Johnson, a sponsor of the legislation. “This law will give New Jersey an even more competitive edge by further establishing our state as an appealing destination for creative projects of all kinds.”

The new legislation increases the amount of tax credits available for digital media content to 30% of qualified spending throughout the state and 35% in selected counties (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, or Salem). It also raises the annual cap on tax credits for digital media content production from $10 million to $30 million.

In March, the specifics will be revealed.

The New Jersey Film Digital Media Tax Credit Program, according to Murphy, "will ensure that our state remains a top destination for some of our country’s most significant film and TV productions."

New Jersey is in the middle of the country, halfway between New York and Philadelphia. It boasts a decent amount of skilled industry employees due to its proximity to New York City. "But convenience is nothing if it doesn’t also make financial sense to attract the business activity," remarked another supporter, State Senator Paul Sarlo. "By increasing the credits of these programs and enhancing the financial incentive to support the film industry and digital media in our state we can solidify New Jersey as a go-to destination for these projects."

Legislators remarked that attracting new business is especially important while the state recovers from the effects of the Covid-19 outbreak.

In a statement, the MPA stated, "Governor Murphy led the way to enact a strong production incentive program in 2018 and New Jersey has already benefited from the film, television, and streaming industry directly supporting more than 20,000 jobs and over $2 billion in wages. That program grows stronger with new enhancements signed into law last night which will create more jobs in the state and investment into the New Jersey economy. I applaud Governor Murphy for his continued leadership, and all the champions of the creative economy in the legislature for expanding New Jersey’s production incentive program."