Netflix Officially Gets $387 Million In Tax Breaks To Open In NJ

EATONTOWN, NJ — On Dec. 19, the board of the New Jersey Economic Development Authority (NJEDA) approved $387 million in tax breaks for Netflix to build its film studios at Fort Monmouth.

These are not new tax breaks: For more than two years now, it's been reported that the state of New Jersey would grant Netflix tax breaks if they built film studios here.

But the Dec. 19 vote by the NJEDA board made the tax credits official; these are Aspire tax credits, which the state created to help "commercial and residential real estate development projects that have financing gaps." Netflix previously estimated it will cost them $848 million to build a state-of-the art film production facility at Fort Monmouth.

Gov. Phil Murphy used the tax breaks to lure Netflix to open in New Jersey, reasoning that Netflix will create hundreds — if not thousands — of jobs in the film industry, ranging from set construction, screenwriting, acting, filming and animation, marketing, wardrobe, hair/make-up and more.

Netflix co-CEO and chief content officer Ted Sarandos said in 2023 that he estimates opening Netflix at Fort Monmouth will create 1,500 permanent jobs in the movie industry.

“This new studio will catalyze job creation and economic growth," Sarandos said Dec. 19.

"(This) will bring good-paying union construction and permanent jobs," said NJEDA CEO Tim Sullivan, who was appointed by Murphy to drive economic development in the state. "The Netflix studio will prove to be an economic game-changer for the residents and small businesses of Monmouth County."

One of the most lasting legacies of Gov. Murphy's time in office (his term ends in 2026) are his efforts to make New Jersey a U.S. movie/TV production headquarters.

This $387 million is not the only tax break Netflix is getting from New Jersey. To encourage the development of large, long-term film studios in the state, the Murphy administration designated Netflix a "Studio Partner" in May 2024. This means that if Netflix occupies their Fort Monmouth production facility for at least 10 years, it is eligible for a 40-percent base tax credit on all production expenses on movies/TV shows filmed in New Jersey.

The reason so many movies are filming in New Jersey ("Happy Gilmore 2," the new Bruce Springsteen and Bob Dylan bio-pics, just to name a few) is because Gov. Murphy revived the state's Film and Digital Media Tax Credit. The credit means any movie filmed or produced in New Jersey gets a 35-percent reduction in their state taxes.

The 40-percent tax break Netflix will get for building at Fort Monmouth is not in addition to the 35-percent tax credit, clarified an NJEDA spokesman.

“(This) will help create thousands of good-paying jobs, support small businesses and vendors, and stimulate the regional economy," Gov. Murphy said Dec. 19.

And that's why Brookdale — Monmouth County's community college — just unveiled an entire associate's degree in film production last month. Other community colleges across New Jersey say they plan to start similar programs, preparing students for jobs in the film industry.

Some concerned about Netflix doing overnight filming

Also in December, the Planning Boards in Oceanport and Eatontown gave their approval for Netflix to begin building movie studio lots. However, several members of the Oceanport Planning Board raised these concerns about Netflix doing around-the-clock filming on the old Army base. Board members said they were worried about outdoor filming, bright lights shining into peoples' homes at night, plus loud noise and traffic.

The four-hour meeting Netflix had with the Oceanport Planning Board on Nov. 12 is available for public view: https://www.gotostage.com/chan...

Discussion between Board members and Netflix representatives got heated at times during that Nov. 12 meeting. A Netflix representative did say they plan to do some outdoor filming at Fort Monmouth. But filming will mostly be done inside the first four soundstages they will build, which are soundproof.

Construction on the first four soundstages will not start until the end of 2025, or even early 2026. Netflix plans to open the facility in 2028.

If all goes well, Netflix plans to build a total of 12 soundstages at Fort Monmouth, and may develop all 200 acres of the former base, which has sat abandoned since the U.S. Army closed the base in 2011.

The goal is for Netflix to turn Fort Monmouth into its East Coast filming headquarters, Gov. Murphy previously said. That means the majority of anything you watch on Netflix would be filmed right here in New Jersey.

And Netflix is not the only film studio the Murphy administration gave tax breaks to: Last June, the NJEDA approved 1888 Studios for similar Aspire tax credits. 1888 Studios, developed by Togus Urban Renewal, plans to build a film/television studio facility on 58 acres in Bayonne.

Prior on Netflix opening at Fort Monmouth:

Noise, Overnight Filming From Netflix Worries Oceanport Planning Board (Nov. 15)

Brookdale Now Offers College Courses In Film Production And Wardrobe (Dec. 6)