- Type of Incentive
- 25%–30% Refundable, Non Transferable Tax Credit
- Maximum Benefit
25% refundable production tax credit (30% maximum with bonuses). 25% refundable post-production tax credit.
Bonus: 5% for (1) qualifying TV series OR (2) qualifying resident crew labor expenses and fringe benefits during production in NM, excluding performing artist compensation, if shooting requirements in a qualified production facility in NM are met.
- Compensation and Project Caps/ Funding Per Year
Program is administered on a first-come, first-served basis.
Annual Cap: $50M (with a rolling cap: when annual cap is met, $10M in tax credits are still granted but paid after the July 1 FY).
Project Cap: None; payments are deferred if credit is more than $2M.
Comp Cap: Up to $20M in payments, in aggregate, to all 'performing artists' (residents and non-residents).
- What Qualifies
Generally, direct production expenditures and post- production services made in NM and subject to NM tax. Payments to residents qualify and compensation for non-resident 'performing artists' employees qualify to the extent their compensation is subject to NM income tax withholding. Payments to non-resident 'performing artists' through a loan-out company or super-loan-out structure may qualify if such payments subject to income tax withholding and NM gross receipts tax (GRT). Payments to local vendors with 'physical presence' and subject to NM GRT generally qualify with certain restrictions.
- Application Considerations
Production company registration is not required but Tax ID registration is necessary if production company withholds NM taxes. Submit initial application after fully financed and opening a NM production office (response <= 24 hours) but prior to start of principal photography. NM does not require submission of a distribution plan or charge an application fee.
- Application Considerations
CPA audit required for credits > $5M. Claim tax credit with a complete NM tax return. Credit is non-transferable and must be filed within one year of the last qualifying expenditure, but not before the last NM qualifying expenditure occurs. Tax credit < $2M will be paid out immediately upon authorization of the filed tax return. Credit $2M-$5M will be paid out in two installments 12 months apart. Credit of >= $5 will be paid in three installments.
- Loan-Out Company Considerations
Registration: Tax ID registration will be required by performing artist loan-outsand to obtain non-taxable transaction certificate.
- Crew Base Considerations
3,000 crew members deep statewide. Four major sound stages. Expansive support services.
- Is Mappable
- Has Incentive Program
- You Should Know
Loan program available. Production must choose either the refundable tax credit or the NM GRT deduction/sales tax exemption, but it may not benefit from both. Additionally, a production has the ability to assign the tax credit to a third-party financial institution
- Screen Credit Required
- Project Criteria
Projects must be commercially viable and are subject to script review. Expenditures must be directly attributable to production, performed in NM, and subject to tax by NM.
25% post-production credit requires either: (1) the project is filmed out-of-state but uses a NM post-production facility or vendors for any of the post services OR (2) post-production work is in NM for a production also filmed in NM.
Bonus: Additional 5% for: (1) qualifying TV series (minimum six episodes w/NM budget >= $50K per episode; includes pilot if 'picked up') OR (2) resident crew labor expenses and fringe benefits during production in NM (excluding performing artist compensation), and if shooting in a qualified production facility in NM for a minimum of 10 days (for budgets < $30M) or 15 days (budgets >= $30M).
New Mexico State Film Office, Economic Development Department
www.nmfilm.com | Nick Maniatis, Director
Phone: 800.545.9871 | firstname.lastname@example.org
- Sales and Use Tax Exemption
- Hotel Tax Exemption
- Post Facilities
- Water Tank
- Big City
- Historical Architecture
- In-State Vendors
- Out-of-State Vendors
- Fringes Paid
- Taxes Paid
Qualified Compensation Expenditures
- Award Shows
- Feature Films
- Game Shows
- Interactive Media and Video Games
- Music Videos
- Reality Shows
- Scripted Shows
- Sporting Events
- Talk Shows
- Visual Effects
- N.M. Stat. Ann. Ch. 7, Art. 2F
These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact EP Financial Solutions or your legal or tax advisors to confirm any laws or the effect of incentives on your project.
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