Calling Georgia laws 'Jim Crow 2.0,' Phil Murphy dangles NJ tax breaks to film, TV companies

Dustin Racioppi
Trenton Bureau

Tapping into the backlash to Georgia's new "un-American" voting laws, Gov. Phil Murphy is trying lure movie and television studios to New Jersey. 

The Democratic governor sent a letter Thursday to major production companies, including Walt Disney Co., Warner Bros. and Netflix, offering up to 40% in subsidies.

Murphy sent his letter two days after he signed early voting into law — with Georgian activist and former gubernatorial candidate Stacey Abrams — which he has been touting all week

In the letter, which was obtained by the Trenton bureau of the USA TODAY Network Atlantic Group, Murphy presented New Jersey as a progressive contrast to Georgia.

He described the new laws there as “Jim Crow 2.0” policies that are "an attack on people of color by a Governor and Legislature willing to do anything to stay in power." 

"One thing is clear: when it comes to social policies, corporate responsibility, and — not to be overlooked — economic opportunity, New Jersey is now a top contender for your business," Murphy said in the letter, which was first reported on by The Wall Street Journal.

"If you are looking to expand, relocate, or consolidate, we respectfully invite you to come experience all that the Garden State has to offer, including our shared values of protecting the constitutionally granted rights of our citizens."

Come to New Jersey, leave Georgia

At a news conference in Cresskill, Gov. Phil Murphy said the return of film tax credits were showing promise.

The new laws by Georgia's Republican leaders impose a range of new restrictions, such as banning water and food from being passed out to residents waiting on line to vote and reducing the number of ballot drop boxes.

The measures have been widely condemned as Republican efforts to suppress the vote in communities of color after Democrats won two U.S. Senate seats and the traditionally red state flipped for Joe Biden in the 2020 presidential election. 

The blowback has been strong in recent days. Major corporations based in Georgia, such as Coca-Cola and Delta Airlines, condemned the new laws as out of line with their corporate values. Prominent voices in business, including Kenilworth-based Merck & Co. leader Ken Frazier, called for corporations to be more forceful against the policies. 

And Biden said he supports calls for Major League Baseball to move its summer All-Star Game out of Atlanta in reaction to the laws. League Commissioner Rob Manfred announced Friday it will move the game out of state and said it is the “best way to demonstrate our values as a sport.”

But major figures in Georgia, including Abrams, have warned against calls for boycotts, saying that the people most hurt by the new voting laws would also suffer the most if business fled the state. 

With the help of its own tax credits, Georgia has become a popular destination for television and movies. Recent films it reportedly hosted production for include "Venom," "Avengers: Endgame" and "Godzilla: King of the Monsters." And Atlanta, in particular, has come to be known as "Hollywood of the South." 

More:NJ tax breaks: Murphy signs giant $14.5 billion corporate tax incentives bill

New Jersey's pitch

With State Sen. Max Burns of Sylvania standing with other lawmakers to governor's right, Gov. Brian Kemp signs SB 202 into law on March 25 as the measure revises voting standards in Georgia. Burns is the chairman of the Senate Ethics Committee.

New Jersey stands to benefit if any business chooses to relocate here from Georgia, but Murphy's offer to reel them in with tax breaks is not the way to do it, said Brandon McKoy, president of the left-leaning think-tank New Jersey Policy Perspective.

The organization has been critical of the state's tax incentives, and McKoy said Friday that film tax credits "are one of the worst investments a state can make." 

McKoy cited studies in two states with film tax credits that showed "a terrible return on investment for taxpayers." In Louisiana, the state got back 36 cents for every dollar spent on tax credits; Massachusetts saw an even lower return, 14 cents for every dollar. 

"Of course companies should rethink their priorities in light of Georgia's restrictive voting laws," McKoy said in a statement. "But New Jersey would be smart to avoid this race to the bottom." 

Murphy has been a cheerleader for the film tax credits even though one legislative analysis projected a loss of $425 million over five years.

He brought the tax credits back in 2018 and expanded them earlier this year, offering up to $2.6 billion over 13 years as part of a $14 billion package of various incentives

"Our new $14.5 billion economic incentive package makes the Garden State just as competitive as Georgia to attract film and television production businesses," Murphy said in the letter.

"The package also has something for almost any industry or project: from a small business looking to buy basic equipment, to a start-up looking for growth investment, to a corporation seeking a new home for hundreds of employees." 

To movie and television production companies, Murphy offered in his letter tax credits of up to 30% of eligible production costs and a subsidy for brick-and-mortar studio development of up to 40%. On top of that, he boasted that New Jersey has the nation's top-ranked schools, a diverse workforce and "first-class" infrastructure. 

"We expect that New Jersey will soon become the major production epicenter on the East Coast," he said.

More:How the NJ Legislature plans to push through $14B in tax breaks in less than one week

Dustin Racioppi is a reporter in the New Jersey Statehouse. For unlimited access to his work covering New Jersey’s governor and political power structure, please subscribe or activate your digital account today.

Email: racioppi@northjersey.com 

Twitter: @dracioppi