Paramount Secures 25% of New Jersey’s Vast 1888 Production Campus
Paramount Pictures is set to establish a significant presence in New Jersey, strategically positioning itself to benefit from the state’s attractive subsidies for film and television production. The company has entered into a ten-year lease for more than 285,000 square feet at the expansive 1888 Studios production campus situated in Bayonne, New Jersey.
Paramount’s Strategic Expansion
This move allows Paramount to potentially benefit from up to 40 percent in tax credits for qualifying films and television shows produced in the state, conditional on the approval of their application. Andy Gordon, Paramount’s Chief Operating Officer, highlighted that scaling up production is integral to the company’s long-term strategy.
New Jersey’s Rising Status as a Production Hub
New Jersey is rapidly emerging as a formidable player in the film industry. This development is further evident as Netflix has recently commenced construction on a substantial $848 million production facility within the state. The site will transform hundreds of acres to accommodate the company’s expanding needs.
About 1888 Studios
The 1888 Studios facility, under development by Togus Urban Renewal, spans 58 acres. It will feature over 1.1 million square feet dedicated to production, including:
- 23 sound stages equipped with 40-foot ceilings
- Support and postproduction facilities
- Office spaces
- A backlot
Paramount will serve as an anchor tenant within this modern production ecosystem. According to Gordon, New Jersey’s competitive tax incentives are crucial in attracting production companies, creating jobs, and enhancing domestic film and TV production.
New Jersey’s Film Tax Incentives
Under the state’s film and television tax incentive program, productions can typically receive subsidies of up to 35 percent on qualifying expenses. Additionally, a special partnership program for studio and film lease partners can increase that credit by an extra five percent, making it one of the most competitive schemes globally. There can only be three such partnerships, which necessitate a strong link to significant infrastructure commitments.
Paramount is expected to submit its application for these incentives later this week. Governor Phil Murphy expressed enthusiasm about the expansion, stating, “Paramount’s move into New Jersey, leveraging the large-scale, full-service production campus at 1888 Studios, underscores the dynamic growth of our creative sector and affirms our status as a global leader in the entertainment industry.”
