L.A, New York….New Jersey? Odd as it sounds, it looks like there could be a new filming hub in the making, and it’s not anywhere you might have predicted! With the news that Netflix and Lionsgate will both now be investing in permanent studio space in the production-friendly state, this is certainly one to watch. Entertainment attorney and local expert, Brandon Blake of Blake & Wang P.A, dives deeper into this new trend.
Lucrative Tax Incentives
A key part of this shift is, of course, the rather compelling tax incentives on offer under the state’s film tax credit scheme, which is being further expanded to draw more high-profile projects to the area. Offering 30-35% offsets, and extended until 2034, it’s a compelling reason to look at the state. As part of this attempt to lure more shoots to the state, Lionsgate has now been granted ‘Studio Partner’ designation. This builds on them becoming the anchor tenant for Lionsgate Newark Studios, operated by Robert Halmi’s Great Point Studios. They will be able to offset qualifying above-the-line wages and some other costs associated with using high-cost creatives and talent. While Lionsgate Newark Studios will be the first purpose-built studio constructed in the area, it won’t be the last, either.
Netflix Unveils Major Plans
We’ve also heard Netflix unveil plans for one of the biggest full-integration production facilities globally, to be constructed in Fort Monmouth, New Jersey. This project will rework a former military base, and about $850M in investment is planned. There will be 12 soundstages, production facilities, and a backlot. The plans were approved last Wednesday, and now must pass the Governor and a 3-6 month due diligence period, as well as some local approvals.
This will give Netflix an East Coast production hub in an area with strong crew availability- and, of course, those tax incentives. Strangely, Netflix has yet to leverage those on a production. Should the New Jersey hub go ahead, it could generate between 1,400- 2,200 jobs, and a tremendous influx of dollars into the area.
Film and Television 