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Find production companies, locations services, film equipment and camera rental companies, post production companies, film crew, and many more production services for your commercial, TV or film production in New Mexico, USA, including Santa Fe, Albuquerque, Las Cruces, Rio Rancho and Deming.

USA

Tax Incentives - Useful tax information for filming in New Mexico, USA

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.

Withholding: 4.9%.

Crew Base Considerations

3,000 crew members deep statewide. Four major sound stages. Expansive support services.

Is Mappable
No
Has Incentive Program
No
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
No
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).

Commissioner

New Mexico State Film Office, Economic Development Department
www.nmfilm.com | Nick Maniatis, Director
Phone: 800.545.9871 | info@nmfilm.com


Additional Benefit

Name
Sales and Use Tax Exemption
Name
Hotel Tax Exemption

Cap

Annual
50000000
Comp
20000000

Features

Soundstages
Yes
Post Facilities
Yes
Water Tank
No
Beach
No
Bridges
No
Big City
No
Desert
Yes
Mountains
Yes
Historical Architecture
No
Southern
No
Tropical
No

Expenditure

In-State Vendors
NA
Out-of-State Vendors
NA
Fringes Paid
NA
Taxes Paid
NA

Qualified Compensation Expenditures

Animation
Yes
Award Shows
No
Broadway
No
Commercials
Yes
Documentaries
Yes
Feature Films
Yes
Game Shows
Yes
Industrials
Yes
Infomercials
Yes
Interactive Media and Video Games
Yes
Music Videos
Yes
News
No
Post-Production
Yes
Reality Shows
Yes
Scripted Shows
Yes
Soundtrack
Yes
Sporting Events
No
Talk Shows
Yes
Trailers
No
Visual Effects
Yes
Webisodes
Yes

Proposed Legislation

Identifier
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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