About Non-Taxable Transaction Certificates (NTTCs)
Not to be used in conjunction with the Refundable Film Production Tax Credit.
(Used primarily for local commercials and PSAs)
If you choose to use the Non-taxable Transaction Certificates (NTTCs) on a given expenditure, you may not count the same expenditure toward the Film Tax Credit. NTTC Type 16s are not issued if a Film Production Company is participating in the Film Production Tax Credit. Production can either use Type 16s or apply for the credit. Vendors or a production may consider requesting a Type 5 (resale) when subcontracting (e.g. for a subcontractor to be exempt from NM GRT).
The State of New Mexico charges a gross receipts tax, or sales tax, at the point of sale. As an incentive, the state will issue your company Type 16 Non-taxable Transaction Certificates (NTTCs), which work much like grocery-store coupons. A certificate is presented at the point of sale and no gross receipts tax is charged.
This program is used primarily by producers of local advertisements and PSAs.
What Qualifies for the NTTCs:
- the cost of a story and scenario to be used for a film
- salaries of talent, management and labor; including payments to personal services corporations with respect to the services of qualified performing artists, as determined under Section 62b(a)(A) of the Internal Revenue Code of 1986
- cost of the construction and operations, wardrobe, accessories, and related services
- costs of sound synchronization, lighting, and related services
- costs of editing and related services
- rental of facilities and equipment (including location fees)
- other direct costs of producing the film subject to GRT and in accordance to generally accepted entertainment industry practices (similar to what qualifies for the Refundable Film Production Tax Credit)
See Section 7-9-86
- Complete the following forms (available at nmfilm.com):
- Email or fax the completed forms: Sherry England or 505-476-5605
- New Mexico Taxation and Revenue Department will send you a New Mexico Business ID Number and CRS -1 Filer's Kit.
- You will receive Type 16 NTTC certificates from the New Mexico Taxation and Revenue Department. Present them to the vendor at the point of sale and no tax will be added to your bill.
- Email Priscilla Castro with questions.