The Real Star of 'Happy Gilmore 2'? New Jersey’s Tax Credits

Adam Sandler's Happy Gilmore 2 is doing huge numbers for Netflix, but the movie may never have happened without New Jersey stepping up to provide the infrastructure and tax incentives to make the film happen.

The production spent a record-breaking $152.5 million in the state, making it the largest film production expenditure in New Jersey's history.

Production spent an average of $2.3 million per day while in the state, which is a major economic boom.

So, how did a state once primarily known for The Sopranos and Bon Jovi become a blockbuster production hub? The answer, my friends, is all about the tax credits.

The Power of a Good Incentive

To reward all that money coming in, New Jersey awarded the production roughly $62.5 million in tax credits, which offset the cost of production.

Netflix obviously liked working with the state, because they're going to build a $1 billion studio there and invest heavily in shooting in the area.

New Jersey's Film and Digital Media Tax Credit Program is aggressively attracting major productions that might have otherwise filmed in traditional hotspots like Georgia or California.

“Under Governor Murphy’s leadership, New Jersey has become a Happy Place for filmmakers, with our above par tax credits, all-star local talent, and diverse locations,” said NJEDA Chief Executive Officer Tim Sullivan.

He continued, “As productions continue selecting New Jersey, the film industry will boost our economy by helping generate good-paying jobs and support small businesses throughout the state.”

What This Means for Filmmakers

Now, you might be thinking, "That's great for The Sand Man, but I'm not working with a nine-figure budget." And you're right, but this news is still incredibly relevant to you, and here's why:

• Infrastructure and Crew: When major productions come to town, they build up the local film infrastructure. This means more experienced crew, more rental houses, and more sound stages. This creates a network of industry professionals and a film-friendly environment that can benefit productions of all sizes.
• The "Hollywood East" Effect: New Jersey wanting to become a go-to production destination is great for anyone wanting to shoot on the East Coast. It can also mean that it's easier to get permits, find locations, and source experienced crew when the state is actively courting the film industry.
• Tax Incentives Aren't Just for Blockbusters: While the headlining numbers are for the big-budget productions, many states have incentives that are accessible to smaller, independent films.

The Takeaway

The next time you're location scouting, think about the financial incentives in the states you want to shoot that could actually make your film a reality.

New Jersey just proved that the right program can turn any state into a production paradise.

So call your local legislators and tell them to keep up.

I'm pretty annoyed California isn't!