Quick Hit:

Netflix has officially launched construction on a $900 million production complex in central New Jersey, transforming a defunct U.S. Army base into a flagship East Coast studio hub. More than a third of the project’s funding—$387 million—is being fronted by New Jersey taxpayers through lucrative film and digital media tax credits. While Netflix executives praise the state’s financial incentives, critics might question the long-term value of subsidizing a billion-dollar streaming giant with public money.

Key Details:

• Netflix is building a $900M production facility at Fort Monmouth, a former Army base in Eatontown, NJ.

• The project is receiving $387M in state tax credits, covering over 40% of the cost.

• New Jersey officials, including Gov. Phil Murphy (D), are touting the move as an economic win, though critics argue the tax breaks mirror failed policies seen in other blue states.

Diving Deeper:

Netflix co-CEO Ted Sarandos and New Jersey Governor Phil Murphy (D) appeared together Tuesday at the groundbreaking ceremony for what’s being called Netflix Studios Fort Monmouth. The 500,000-square-foot facility will include multiple soundstages, a backlot, and post-production suites—representing the streamer’s largest East Coast expansion to date. But while Hollywood glitz made a splash in the Garden State, the real spotlight belongs on the $387 million in taxpayer-funded incentives backing the deal.

New Jersey’s tax credit programs—which cover up to 35% of production costs and 40% of digital post-production—are being used to entice major studios to relocate or expand operations in the state. Sarandos directly credited the tax incentives for Netflix’s decision, emphasizing the economics behind the move. "This was not about nostalgia," said Sarandos, despite his New Jersey roots. “It was a business decision.”

Republican State Senator Declan O’Scanlon, who represents Monmouth County, acknowledged his past opposition to the credit program, telling The Hollywood Reporter, “I was wrong.” The GOP lawmaker now boasts that New Jersey is “kicking California’s ass”—a nod to the Golden State’s increasingly hostile regulatory and tax climate that has driven out productions in recent years.

Governor Murphy, seated in a Netflix-branded director’s chair during the event, lavished praise on the tax credit program, calling it “the single best in the entire country.” He emphasized the studio’s potential for future generations, and pointed to legislation extending the credits through 2039—virtually guaranteeing decades of subsidized filmmaking in the state.

Still, critics may see warning signs. Generous corporate handouts like these have a checkered track record, particularly when awarded to politically favored industries. Similar strategies in states like California and New York have produced mixed economic results, often benefiting deep-pocketed media companies while leaving taxpayers with little measurable return.

Netflix currently has seven productions underway in New Jersey, and expects activity to grow significantly when the new campus opens, slated for 2028. Local officials are pledging a red-carpet rollout for the studio, with Monmouth County Commissioner Director Thomas Arnone promising to “make this easy” for Netflix—a stark contrast to the permitting headaches that have dogged projects in California.

While Democrat leaders and Netflix execs tout job creation and cultural enrichment, the nearly $400 million in tax subsidies raise serious questions about economic priorities and fiscal discipline. In the end, New Jersey residents may be the ones left footing the bill, even as Hollywood cashes in.