Netflix Ditches Hollywood: How New Jersey Snagged the Streaming Giant With Massive Tax Breaks

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Look what’s growing in the Garden State.

On Tuesday morning, The Hollywood Reporter witnessed Netflix beginning construction on their new eastern headquarters, Netflix Studios Fort Monmouth in central New Jersey. (Did you know there’s a central New Jersey?) This extensive renovation project, where Netflix plans to transform an abandoned U.S. Army base into a dozen soundstages, a backlot, advanced post-production facilities, office spaces, and approximately half a million square feet of everything Netflix, is made possible by one factor: tax incentives.

You might want to take some notes here, California.

Prior to three demolition blows being struck at an old, deteriorating military structure (which was equipped with safety helmets, rest assured), and before breakfast sandwiches made of pork roll, egg, and cheese were distributed among attendees, including David Chase, the creator of “The Sopranos”, New Jersey already had seven ongoing film productions for Netflix. In the upcoming years, this number is set to significantly increase.

Instead of basing its future on New York City, the global streaming leader chose to invest in a different location, with Governor Phil Murphy expressing his belief that New Jersey offers the top film-incentive program nationwide. As he spoke, standing alongside Sarandos on stage, Netflix co-CEO Ted Sarandos enthusiastically endorsed this assertion, perhaps a bit prematurely. It’s possible someone glanced at the teleprompter ahead of time.

Ted Sarandos’ passion for the project is clearly noticeable, and it also makes sound business sense. As the head of a nearly half-a-trillion dollar publicly-listed corporation, Sarandos’ decision to base Netflix partially in New Jersey wasn’t purely sentimental, despite his birth there; rather, he selected it as a matter of good fiscal responsibility.

New Jersey’s tax incentives for film and television production are quite advantageous. The state provides a credit of up to 35% on eligible film production costs, and an even higher credit of up to 40% for post-production expenses related to digital media (such as Netflix productions), which Sarandos specifically praised as crucial to Netflix Studios Fort Monmouth.

Generous incentives have played a significant role in positioning New Jersey as the sixth-highest state for film and television productions, as revealed by a study conducted by ProdPro on April 8th. In terms of funds spent over the past year, New Jersey trails only Illinois, New Mexico, Georgia, New York, and California, with expenditures amounting to $536 million, $725 million, $805 million, $2.23 billion, $4.07 billion, and $6.34 billion respectively.

According to Murphy, the standout aspect of New Jersey’s film tax incentive program isn’t just the amount of money they’re ready to invest, but more so the length of time they’re prepared to commit. The New Jersey Film and Digital Media Tax Credit Program has been extended until June 30, 2039. Murphy described this as a clear demonstration that it’s not about the current generation, but rather for future generations.

“And that to me is the strongest statement you could make,” he told us.

As I stood up to take my turn at the podium, I couldn’t help but reminisce about the moment I fell head over heels for the idea of Netflix Studios Fort Monmouth. That spark ignited during my very first chat with Murphy, the soon-to-depart two-term governor of New Jersey.

Even though Murphy was noticeable in Fort Monmouth’s affairs, he wasn’t the sole New Jersey politician who courted Netflix to Monmouth County. Luckily, they all had a chance to address the crowd on this drizzly Tuesday in Eatontown, NJ. The benefits of tax credits were highlighted repeatedly. (State Senator Vin Gopal briefly mentioned other appealing aspects of New Jersey, such as its coastline and educational institutions.)

Wow, how significant movie credits can be, as noted by the Speaker of the New Jersey General Assembly, Craig Coughlin.

Senator Declan O’Scanlon confessed that it took him some time to support the initiative leading to Netflix Studios Fort Monmouth, and later on, he surprisingly conceded, “I made a mistake.” This is an unusual admission for any politician.

Additionally, each of them took time to highlight their roots, and for Coughlin, this meant taking a stand against HBO, a major competitor in premium TV content. He expressed his displeasure at the idea of another show like Boardwalk Empire, which was based on historic Atlantic City, bypassing New Jersey in favor of New York, saying “Enough with that!” or perhaps more colorfully, “To the devil with it!

As for O’Scanlon, it was this declaration: “We’re kicking California’s ass.”

Welcome to New Jersey.

Despite the fact that we’re far behind (and likely always will be) in terms of total investment and output, there is some validity to O’Scanlon’s argument. California’s arrogance about Los Angeles’ dominance in the entertainment industry has led to a significant amount of production moving elsewhere. It’s only now that California’s governor, Gavin Newsom, is starting to match incentives for filmmaking.

In the case of Hollywoodland, local authorities unfortunately added to its struggles with lengthy permit procedures that led to significant delays. However, Monmouth County Commissioner Director Thomas Arnone assures us that such issues will not be a problem in this project.

“We will make this easy for you,” he said to Sarandos.

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2025-05-13 21:55