EDA Approves Key Designations for Netflix and 1888 Studios

By Jim Pytell, Managing Editor On May 8, 2024

The New Jersey Economic Development Authority (EDA) today approved two designations that will further boost the state’s blossoming film and television industry. 

The first designation makes Netflix a Studio Partner of the state, allowing the media company to access expanded benefits under the state’s Film and Digital Media Tax Credit program. Under the designation agreement, Netflix commits to occupy a New Jersey film production facility for at least 10 years and is potentially eligible for a 40% base tax credit for qualified production expenses on future New Jersey film projects.

The second approval designates 1888 Studios in Bayonne, developed by Togus Urban Renewal, LLC, as a Film-Lease Partner Facility. 

This designation commits the developer to occupying the facility for at least five years and grants future tenants eligibility to apply for increased tax credits for projects filmed at the facility under the Film and Digital Media Tax Credit program.

“Today’s approvals by NJEDA are major steps in delivering thousands of jobs to New Jersey and further galvanizing the state’s growing film and television industry,” said NJBIA Chief Government Affairs Officer Christopher Emigholz. 

“We are excited for the opportunities of new workforce development programming and a flurry of economic activity that will play a starring role in transforming the economies around Fort Monmouth and Bayonne and their surrounding areas,” he said. “We thank both Netflix and 1888 Studios for their commitment to state-of-the-art production facilities and NJEDA and the Murphy administration for their commitment to bringing these projects to New Jersey under the Film and Digital Media Tax Credit program.”

Netflix

Netflix’s plan to build a state-of-the-art motion picture and television production facility was first announced in December of 2022. The studio campus will be completed in two phases over the course of several years. The first phase will include the construction of 12 soundstages that will range in size from 15,000 square feet to 40,000 square feet each with a minimum total buildout of 180,000 square feet and a maximum buildout of 500,000 square feet.

The project is expected to create more than 1,500 permanent production jobs and more than 3,500 construction-related jobs.

“Netflix’s historic investment in Fort Monmouth’s future, which will generate thousands of union jobs and significant revenue, is a testament to our broader strategy when it comes to establishing New Jersey as the Northeastern home for film and entertainment,” said Gov. Phil Murphy. “This campus is no longer a painful reminder of economic decline and disinvestment. Instead, Fort Monmouth now stands as a symbol of renewal and revived hope.”

“We thank Netflix for their commitment to this state-of-the-art production facility and EDA and the Murphy administration for their commitment to bringing this project to New Jersey.”

The Murphy administration has worked alongside the Legislature and the New Jersey Motion Picture & Television Commission to create a film incentive program that has helped attract more business to the state. Last year alone, the film and television production industry poured more than $650 million into the state’s economy – an increase of more than $150 million over the year prior – and created more than 8,500 jobs.

1888 Studios in Bayonne

Murphy said the designation of 1888 Studios as a Film-Lease Partner Facility will open the door for more production companies to film in New Jersey, helping to support local small businesses and communities and create thousands of good-paying jobs.

1888 Studios will stand as the largest and first campus style film and television studio facility in the Northeast and one of the largest in the nation, occupying 58 acres of land and 20 acres in the Newark Bay just miles from New York City. 

Designed by the leading architecture firm Gensler to evoke imagery of Golden Age Hollywood, the development will include 23 mega-powered smart sound-stages ranging from 18,000 to 60,000 square feet with 40 to 50 foot-high ceilings, more than 350,000 square feet of production support space, outdoor backlot space, amenities, office spaces, mills, lighting and grip facilities, parking garage and storage. The development will also feature a waterfront park and promenade accessible to the public. 1888 Studios is expected to open in 2026.

NJEDA Chief Executive Officer Tim Sullivan says that 1888 Studios’ designation highlights how the state’s incentives, breadth of local talent, and diverse filming locations are attracting the development of world-class studio spaces. 

To be designated as a Film-Lease Partner, developers and operators must commit to occupying and operating studio developments in New Jersey for at least five years. Future tenants of a Film-Lease Partner Facility can receive increased tax credit awards for filming in New Jersey. The tax credit award increases if the designated facility’s tenant qualifies as a “film-lease production company”. To qualify, the production company must occupy space at designated film-lease partner facility, film at least 50% of the total project shoot days in New Jersey, and film at least 50% of the New Jersey shoot days at the designated facility.

The Film-Lease Partner designation is part of the Film and Digital Media Tax Credit program, which Governor Murphy reinstated in 2018, and has led to increased film and digital media production throughout the state. The program, which is funded through 2039, provides a tax credit of up to 40% of labor expenditures and up to 35% of qualified film production expenses, including a Diversity Tax Credit of up to 4% for productions that employ the services of women or people of color.

The program was expanded in 2021, increasing the annual allocation to $400 million and granting the NJEDA authority to designate eligible film studio developments as Film-Lease Partner Facilities.

To access more business news, visit NJB News Now.

Related Articles: