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FORM 318 New Jersey Corporation Business Tax
2022 Film Production Tax Credit
Name as Shown on Return Federal ID Number Unitary ID Number, if applicable
NU
Read the instructions before completing this form
Note: This credit has expired with privilege periods and tax years commencing after July 1, 2015, under the provisions of sec-
tion 3 of P.L. 2005. A new film and digital media production credit was established under P.L. 2018, c. 56. Complete Form 327
to claim the new credit.
Combined Return Filers
The taxpayer is included as a taxable member on a New Jersey combined return. See instructions.
Fill in oval if member is not sharing its credit with other members of the group.
Part I Qualifications
1. Were the qualified film production expenses incurred during a privilege period beginning after
January 12, 2006, or were the qualified digital media content production expenses incurred during a
privilege period beginning on or after January 11, 2008? ............................................................................. YES NO
2. Were at least 60% of the total film production expenses, exclusive of post-production costs, or were at
least $2,000,000 of the digital media content production expenses incurred for services performed and
goods used or consumed in New Jersey?.................................................................................................... YES NO
3. Did the principal photography of the film begin within 150 days of the approval date of the tax credit
application? Leave blank if qualified expenses relate only to digital media content production. .................. YES NO

4. Is a copy of the approval for this tax credit included with the return? ........................................................... YES NO
NOTE: If the answer to any of the above questions is “NO,” do not complete the rest of this form. The taxpayer does not qualify for this
tax credit. Otherwise, go to Part II.
Part II Calculation of the Allowable Credit Amount and Carryover
(Combined return filers DO NOT complete Part II. Continue with Part III.)

5. Film Production Tax Credit carried forward from the prior year ................................................ 5.

6. Enter tax liability from page 1, line 2 of CBT-100, CBT-100S, or BFC-1 .................................. 6.

7. Enter the required minimum tax liability (see instructions) ............................................................ 7.

8. Subtract line 7 from line 6 ......................................................................................................... 8.

9. Enter 50% of the tax liability reported on line 6 ........................................................................ 9.

10. Enter the lesser of line 8 or line 9 ............................................................................................. 10.
11. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d) ..............................Total 11.

12. Subtract line 11 from line 10. If zero or less, enter zero ........................................................... 12.
13. Allowable credit for the current tax period. Enter the lesser of line 5 or line 12 here and on
Part I, Schedule A-3 of the CBT-100, CBT-100S, or BFC-1 ....................................................... 13.

14. Amount of credit carryover to following year’s return (subtract line 13 from line 5) ................... 14.

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Name as Shown on Return Federal ID Number Unitary ID Number, if applicable
NU
Part III Calculation of Allowable Credit Amount and Carryover – Combined Return Filers ONLY
Section A – ALL Combined Return Filers
15. Film Production Tax Credit carried forward from the prior year .......................................................... 15.
16. Enter the group tax liability from Schedule A, Part III, line 5, column (a) of CBT-100U ...................... 16.
17. Enter the aggregate minimum tax of combined group members (see instructions) ................................ 17.
18. Subtract line 17 from line 16 ............................................................................................................... 18.
19. Enter 50% of the tax liability reported on line 16 ................................................................................ 19.
20. Enter the lesser of line 18 or line 19 ................................................................................................... 20.
21. Other tax credits used by combined group on current year’s return (see instructions):
(a)
(b)
(c)
(d) ......................................Total 21.
22. Subtract line 21 from line 20. If zero or less, enter zero ..................................................................... 22.
23. Allowable credit for the current tax period. Enter the lesser of line 15 or line 22. If sharing, also
enter in the member’s column of Part I, Schedule A-3 of the CBT-100U ........................................... 23.
If SHARING credit, complete line 24.
If NOT sharing credit, skip line 24 and complete Section B.
24. Amount of credit carryover to following year’s return (subtract line 23 from line 15) .......................... 24.
Section B – Combined Return Filers NOT Sharing Credit
25. a) Enter combined group tax liability from line 16 ............................ 25a.
b) Divide line 25a by the combined group allocation factor from
Schedule J, line 9 ........................................................................ 25b.
c) Member’s share of combined group tax liability – Multiply line 25b by member’s allocation factor
from Schedule J, line 9 .................................................................................................................. 25c.
26. Required minimum tax liability ............................................................................................................ 26. 2,000
27. Subtract line 26 from line 25c ............................................................................................................. 27.
28. Enter 50% of the tax liability reported on line 25c .............................................................................. 28.
29. Enter the lesser of line 27 or line 28 ................................................................................................... 29.
30. Other tax credits used by taxpayer on current year’s return (see instructions):
(a)
(b)
(c)
(d) .......................................Total 30.
31. Subtract line 30 from line 29. If zero or less, enter zero ..................................................................... 31.
32. Allowable credit for the current tax period. Enter the lesser of line 23 or line 31 here and in the
member’s column of Part I, Schedule A-3 of the CBT-100U .............................................................. 32.
33. Amount of credit carryover to following year’s return (subtract line 32 from line 15) .......................... 33.

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Instructions for Form 318
Film Production Tax Credit
Purpose of this Form
A new film and digital media production credit was established under P.L. 2018, c. 56, and is claimed on Form 327. Form 318 must be
completed by any taxpayer claiming an unused, unexpired Film Production Tax Credit and/or credit carryforward as provided for under the
prior credit program, which expired for privilege periods or tax years after July 31, 2015, pursuant to prior N.J.S.A. 54:10A-5.39. In general,
the previous credit is allowed in an amount equal to 20% of the qualified film production expenses paid by the taxpayer during the privilege
period, provided that at least 60% of the total production expenses (other than post-production) were for services performed or goods used
in New Jersey, and provided that the principal photography began within 150 days after the credit application was approved. A credit is
also allowed in an amount up to 20% of the qualified digital media content production expenses provided that at least $2,000,000 of the
expenses were for services performed or goods used in New Jersey. This credit may be claimed for qualified film production expenses
incurred on or after January 12, 2006, and/or qualified digital media content production expenses incurred on or after January 11, 2008.
P.L. 2010, c.20 suspended the film and digital media credit of N.J.S.A. 54:10A-5.39 for Fiscal Year 2011.

Parts II and III are used to calculate the allowable credit and carryover. Taxpayers filing Forms CBT-100, CBT-100S, or BFC-1 complete
Part II and CBT-100U filers complete Part III.

The amount of the tax credit that cannot be applied to the current tax period due to the applicable limitations can be carried over to the
seven privilege periods following the privilege period for which the credit was allowed.

Definitions:
Film means a feature film, a television series or a television show of 15 minutes or more in length intended for a national audience.
“Film” shall not include a production featuring news, current events, weather and market reports, public programming, talk show, game
show, sports event, award show or other gala event, a production that solicits funds, a production containing obscene material as
defined under N.J.S. 2C:34-2 and N.J.S. 2C:34-3, or a production primarily for private, industrial, corporate, or institutional purposes.

Qualified Film Production Expenses means an expense incurred in New Jersey for the production of a film including post-produc-
tion costs incurred in New Jersey. Qualified expenses include but are not limited to wages and salaries of individuals employed in the
production of a film on which the New Jersey Gross Income Tax has been paid or is due; the costs of construction, operations, editing,
photography, sound synchronization, lighting, wardrobe, and accessories; and the cost of rental of facilities and equipment. Qualified
expenses do not include expenses incurred in marketing or advertising a film.

Total Film Production Expenses means costs for services performed and tangible personal property used or consumed in the pro-
duction of a film.

Post-Production Costs means the cost of the phase of production that follows principal photography in which raw footage is cut and
assembled into a finished film with sound synchronization and visual effects.

Qualified Digital Media Content Production Expenses means an expense incurred in New Jersey for the production of digital
media content. Qualified expenses include but are not limited to wages and salaries of individuals employed in the production of
digital media content on which New Jersey Gross Income Tax has been paid or is due; the costs of computer software and hardware,
data processing, visualization technologies, sound synchronization, and editing; and the rental of facilities and equipment. Qualified
expenses shall not include expenses incurred in marketing, promotion, or advertising digital media or other costs not directly related to
the production of digital media content. Costs related to the acquisition or licensing of digital media content by the taxpayer for distribu-
tion or incorporation into the taxpayer’s digital media content shall not be qualified digital media content production expenses.

Total Digital Media Content Production Expenses means costs for services performed and property used or consumed in the pro-
duction of digital media content.

Combined Return Filers
If filing a combined return, this form must be completed by the member that earned (purchased) the credit. All combined return filers must
check the combined return filers box at the top of the form and complete Part III, Section A.

Members Opting Not to Share. In general, tax credits are earned by a member of the combined group and are shareable with the com-
bined group. However, members are not required to share their credits. See N.J.S.A. 54:10A-4.6.i and TB-90(R), Tax Credits and Com-
bined Returns. In addition to Section A, members that choose not to share must also complete Part III, Section B and fill in the oval at the
top of the form to indicate they are not sharing the credit.

Taxpayers must include the appropriate credit form in the year the credit was earned even if they are not claiming the credit on
their tax return.

Part I – Qualifications
The answer to all questions must be “YES.” If the answer to any of the questions is “NO,” the taxpayer is not entitled to the Film Production
Tax Credit.

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Part II – Calculation of the Allowable Credit Amount and Carryover (for CBT-100, CBT-100S, and BFC-1 
Filers only)
For CBT-100, CBT-100S, and BFC-1 filers, the allowable Film Production Tax Credit for the current tax period is calculated in Part II. Com-
bined return filers do not complete Part II, and must complete Part III instead. The amount of this credit in addition to the amount of any 
other tax credits is limited to 50% of the taxpayer’s total tax liability and cannot exceed an amount that would reduce the total tax liability 
below the statutory minimum. 

Line 7 – The minimum tax is assessed based on the New Jersey Gross Receipts as follows:
                             New Jersey Gross Receipts                 CBT-100/BFC-1      CBT-100S
                             Less than $100,000                        $500                    $375
                             $100,000 or more but less than $250,000   $750                    $562
                             $250,000 or more but less than $500,000   $1,000                  $750
                             $500,000 or more but less than $1,000,000 $1,500                  $1,125
                             $1,000,000 or more                        $2,000                  $1,500

If a taxpayer is filing a separate return and is a member of an affiliated or controlled group that has a total payroll of $5,000,000 or more for 
the return period, the minimum tax is $2,000. Tax periods of less than 12 months are subject to the higher minimum tax if the prorated total 
payroll exceeds $416,667 per month.

Line 11 – Taxpayers claiming multiple credits must list any credits already applied to the tax liability to ensure accuracy of the calculation 
for maximum credit allowable.

Part III – Calculation of the Allowable Credit Amount and Carryover for Combined Return Filers
For CBT-100U filers, the allowable Film Production Tax Credit for the current year is calculated in Part III. All combined return filers must 
complete Section A. Members that choose not to share their credit must also complete Section B.

Section A – To be completed by ALL combined return filers
This section calculates the amount of credit allowable for the group. If a member chooses not to share their credit with the group, Section A 
must still be completed to ensure the credit allowed for the member does not exceed the amount that would otherwise be allowed against 
the group tax liability.

The amount of the credit calculated in this section cannot exceed 50% of the group tax liability otherwise due and cannot reduce the tax 
liability to an amount less than the aggregate statutory minimum tax of the group members.

Line 17 – Multiply the number of taxable group members by $2,000 and enter the result.

Line 21 – Combined groups claiming multiple credits must list any credits already applied to the group tax liability to ensure accuracy of 
the calculation for maximum credit allowable.

Section B
This section is used to calculate the amount of credit allowable for members that choose not to share their credit with the group. Section B 
is completed based on the member’s share of the group tax liability. The amount of the credit calculated in this section cannot exceed 50% 
of the member’s tax liability otherwise due and cannot reduce the tax liability to an amount less than $2,000. The amount of the credit is 
also limited to the amount that would otherwise be allowed against the group tax liability if the member had been sharing the credit.

Line 30 – Members claiming multiple credits must list any credits already applied to the member’s tax liability to ensure accuracy of the 
calculation for maximum credit allowable.

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