Streaming giant Netflix has been awarded up to $387 million in tax credits for the flagship studio complex it's developing in New Jersey. This is the second project to get such a package as the Garden State looks to bolster TV and film production within its borders.
The New Jersey Economic Development Authority approved the tax incentives to Los Gatos, California-based Netflix on Thursday. The entertainment company is buying nearly 300 acres in Fort Monmouth, a parcel spanning Oceanport and Eatontown, to build a state-of-the-art production facility and campus. The EDA pegged the total development costs at $1.21 billion.
The facility, Netflix Studio, will serve as the subscription video firm's flagship production location on the East Coast, the state agency said.
New Jersey Gov. Phil Murphy has made attracting entertainment companies to the Garden State one of the linchpins of his administration's economic development strategy, and he's had success. There are now several movie-and-TV production facilities planned for New Jersey. One of them — 1888 Studios in Bayonne — was awarded $400 million in tax credits in June.
The New Jersey projects are moving forward as states such as Georgia have seen a slowdown in TV and movie production, according to media reports.
Netflix Studio is considered a transformative project under New Jersey's Aspire Program and was approved for an award not to exceed $387 million over 10 years. The studio campus will be over 1 million square feet and include 12 soundstages, backlot areas, an office building and other production support facilities. Netflix plans to open the full facility in 2028.
Job catalyst
“With Netflix leading the way, the creation of new, world-class studios has solidified New Jersey’s standing as a national leader in film and television production,” Murphy said in a statement. “The approval made by the NJEDA Board today will help create thousands of good-paying jobs, support small businesses and vendors, and stimulate the regional economy.”
The 1888 Studios project is also receiving its tax credits under the Aspire program. The Bayonne development, being undertaken by Togus Urban Renewal, will be the largest and first campus-style film and television studio facility in the Northeast, according to the EDA. It will occupy 58 acres.
“We are grateful to receive support from Governor Murphy, the local officials in Oceanport and Eatontown, and the NJEDA to help build Netflix Studios at Fort Monmouth,” Ted Sarandos, Netflix co-CEO, said in the statement. “This new studio will catalyze job creation and economic growth, contributing to a vibrant production ecosystem in New Jersey."
Local approvals in place
Earlier this year, the EDA designated Netflix and 1888 Studios as studio partners, allowing the projects to access expanded benefits under the state’s Film and Digital Media Tax Credit program. Under the designation agreement, they commit to occupy a New Jersey film production facility for at least 10 years and are potentially eligible for a 40% base tax credit for qualified production expenses on future New Jersey film projects.
The Oceanport and Eatontown planning boards have granted initial approvals for Netflix's plans.
“Under Gov. Murphy’s leadership, the film industry is growing in New Jersey, exemplified by Netflix’s commitment to build a major, world-class studio at Fort Monmouth,” EDA CEO Tim Sullivan said in the statement. “The Aspire Program will ensure the continued development of this transformative project, which will bring good-paying union construction and permanent jobs. The Netflix Studio will prove to be an economic gamechanger for the residents and small businesses of Monmouth County.”
Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 to support mixed-use, transit-oriented development with tax credits, to commercial and residential real estate development projects that have financing gaps.