Will TV production companies stop filming in New Jersey?  Odds are they will, if the state axes the tax credit for production companies. At a state hearing Wednesday, actors, producers and directors made their case to extend the tax credit.

Representatives from “Mercy” and “Law and Order: Special Victims Unit” urged Republican Gov. Chris Christie to reconsider ending the 20 percent tax credit the state has offered since 2006 to lure movie and TV production companies to the state. Both TV series are filmed largely in New Jersey.

New Jersey has benefitted greatly by the popular and successful TV drama “The Sopranos”. Feature films such as “The Wrestler” starring Mickey Rourke as a professional wrestler past his prime and “Julie and Julia” starring Meryl Streep as cooking legend Julia Childs were also filmed in New Jersey.

“If there hadn’t been a credit program in place, New Jersey would not have been an option” as a location for “Mercy,” series producer Jim Bigwood told the hearing chaired by state Senate Budget Appropriations Committee Chairman Paul Sarlo, a Democrat and supporter of the tax credit.

Yesterday’s hearing was held in the warehouse where hospital drama “Mercy” has been filmed since last year. The series was not renewed by NBC but had been considered for cable, a possibility that was nixed because of uncertainty over New Jersey’s tax credit, according to Brian O’Leary, tax counsel for NBC Universal.

O’Leary contrasted the fate of “Mercy” with that of “Law and Order: Criminal Intent,” a New York-filmed series that NBC dropped but opted to move to USA Network.

Critics have characterized New Jersey’s film tax credit as an unnecessary handout to Hollywood. Christie has vowed to cut it from the state budget that must be passed by July 1.

New Jersey will do anything to close it’s budget gap, but cutting the New Jersey tax credit to production companies will continue the flow of businesses leaving the state. According to a study released by Boston College’s Center on Wealth and Philanthropy, from 2004 through 2008, $70 billion in wealth left New Jersey.

Will the TV stars rally for a tax credit extension really make a difference? I don’t think so. It appears the state hasn’t learned that offering tax credits and tax incentives attract, and keep, businesses.

No wonder New Jersey has a budget deficit.

source: The Jersey Journal