SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 3503

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 4, 2025

      The Senate Community and Urban Affairs Committee reports favorably and with committee amendments Senate Bill No. 3503.

      As amended, this bill provides corporation business tax and gross income tax credits to production companies for costs incurred for certain accredited theater productions.

      Specifically, the bill provides that a production company may receive tax credits for costs related to eligible theater productions that are performed at qualified facilities in New Jersey.  The credits allowed equal 35 percent of the production’s eligible production and performance expenditures.  Under the bill, production and performance expenditures include: (1) expenditures for design, construction, and operation, including sets, special and visual effects, costumes, wardrobe, make-up, and accessories; (2) costs associated with sound, lighting, staging, facility expenses, rentals, per diems, and accommodations; (3) payroll costs up to $250,000 per week; (4) certain advertising and public relations expenditures; and (5) transportation expenditures.

      The bill requires production companies to apply to the New Jersey Economic Development Authority for the initial approval of tax credits.  However, the bill provides that the Director of the Division of Taxation in the Department of the Treasury is responsible for the final approval of tax credits.  Under the bill, the total value of tax credits awarded in each fiscal year may not exceed $10 million.

COMMITTEE AMENDMENTS:

      The committee amendments remove the requirement for the date on which an accredited theater production was performed at New York City’s Broadway theater district to be included in an application for tax credits.  The amendments also make technical changes to the bill.