By Gavin Boyle
As the filming exodus from LA continues, New Jersey has emerged as one of the next major players in the industry, thanks to lucrative tax incentives and billions of dollars in investments in new studios.
“Film and TV started in New Jersey, way back in the day under Thomas Edison, in Fort Lee, New Jersey. We were Hollywood before there was a Hollywood,” Tim Sullivan, CEO of the New Jersey Economic Development Authority, told Fox Business. “We’re bringing ourselves back to the top of the pack with major investments, because we see a huge economic opportunity here. It’s fun to have celebrities running around making movies, but it’s really impactful to small businesses, construction workers and vendors who support the industry.”
“Carpentry, electricians, set design, costume design, hair and makeup, catering, craft services, security, lighting, all kinds of jobs are supported by the film industry,” Sullivan added.
To attract all of this business, New Jersey has made a significant economic investment, offering up to 45% in tax credits – which totaled to $592 million in 2023. To make everything even more lucrative for studios, some of the tax incentives stretch into 2039, providing them security that investments made in the state will remain worthwhile for years.
Netflix and Lionsgate have both moved to cash in on these incentives, creating state-of-the-art studios to make it easier to produce movies and TV shows in the state.
Meanwhile, Hollywood continues to struggle with its own policies that have made it an uncompetitive place to film. A group of workers and lawmakers are fighting to expand California’s film credit system while also relaxing some regulations so the state can recapture its production industry, which is fading fast.
Related: Hollywood Teeters on Collapse as Workers Call for More Tax Credits
“This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto,” said Noelle Stehman, a member of the “Stay in L.A.” campaign.
Meanwhile, President Trump has announced his own plans to save the entertainment industry by placing a tariff on any movies produced on foreign soil. While this might help somewhat, it still leaves California in a rut as productions are still able to flee LA to chase of lucrative tax credits offered by other states.
“The Movie Industry in America is DYING a very fast death,” President Trump wrote on his social media platform, Truth Social. “Other countries are offering all sorts of incentives to draw our filmmakers and studios away from the United States. Hollywood, and many other areas within the U.S.A., are being devastated.”
“Therefore, I am authorizing the Department of Commerce, and the United States Trade Representative, to immediately begin the process of instituting a 100% Tariff on any and all Movies coming into our Country that are produced in foreign lands,” President Trump added. “WE WANT MOVIES MADE IN AMERICA, AGAIN!”
As Hollywood continues to experience a mass outflow, states like New Jersey are working hard to capture this opportunity and position themselves as major players in the filming industry.
Read Next: Is Texas Becoming the New Hollywood?
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