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- Do video games qualify?
- Does print (still shots) qualify?
- Will pornography qualify?
- What about post-production?
- Can a non-profit organization claim the rebate?
- Do I have to spend a minimum amount in order to qualify?
- Is there a cap on New Mexico expenditures?
- Is there an annual cap/allocated fund?
- Any caps?
- Is there a certain percentage I must film in New Mexico in order to qualify?
- Is there a certain percentage of New Mexico crew I must hire in order to qualify?
- Do I have to pre-qualify or “get in line”?
- When should I apply?
- Back to that out-of-state director and producer thing…
- Must I register my production company in the State of New Mexico?
- Must I use a New Mexico producer or production company in order to qualify?
- Must I use a New Mexico bank and have a New Mexico bank account?
- How do we receive our money?
- How long does it take to get the rebate?
- It seems too good to be true. Is it really that simple?
- I still have some unanswered questions. What do I do?
- I already did. And I still have questions.
- What qualifies?
Anything that has a New Mexico state tax attached.
- What doesn’t qualify?
Anything that doesn’t have a New Mexico state tax attached: non-profits,
governmental agencies, etc...
- Will out-of-state crew qualify?
No. However, their housing and per diem will.
- Does the rebate apply to out-of-state ATL?
Only actors and stunt performers – “performing artists.”
- What about other out-of-state ATL such as directors or producers?
Nope, just actors and stunt performers.
- Really, are you absolutely certain out-of-state directors or producers don’t qualify?
Yup, absolutely certain.
- What about New Mexican ATL?
Yes, all ATL New Mexico residents will qualify.
- I’m confused about the out-of-state actor “super loan-out” thing I’ve been hearing about. Could you explain?
Most productions use a “super loan-out,” a secondary company they open in a
state other than New Mexico. They register this “super loan-out” to do business in New Mexico and run all of their out-of-state cast salaries through this entity. New Mexico requires that the “super loan-out” pay a 5% gross receipts tax on these salaries; however this 5% is rebateable, and so you would have a net profit of 21.25%. Please keep in mind that the actors must agree to file and pay New Mexico personal income tax in order for their salaries to qualify. (Note: several payroll companies can facilitate the “super loan-out” through their non-New Mexico offices.)
- Is it a credit or a rebate?
Technically, New Mexico has a “refundable tax credit.” In other words, cash for
the full amount – with no brokering required. New Mexico Taxation & Revenue literally sends you a check.
- Is the tax rebate assignable?
No.
- Is the rebate on the full amount or just the tax portion?
The full amount. Example: you spend $95.00 and $5.00 on tax for a total of
$100.00. You would receive $25.00 back.
- Must I always pay tax in order for an expenditure to qualify?
No, not in all cases will you be paying the tax. Example: you rent a home to be used as a location. The homeowner will not charge you tax; however, that location fee will qualify because now the homeowner must pay income tax on that amount. Remember, it’s anything that has a state tax attached.
- Do commercials qualify?
Yes, as long as they’re a regional or national broadcast.
- Do documentaries qualify?
Yes.
- Do short films qualify?
Yes.
- Do video games qualify?
Yes.
- Do video games qualify?
Yes.
- Does print (still shots) qualify?
No.
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- Will pornography qualify?
No.
- What about post-production?
Yes. Stand-alone post will even qualify. So if you film in California, but decide to
do your post in New Mexico, your post-production expenditures will qualify.
- Can a non-profit organization claim the rebate?
No, sorry, because the mechanism for receiving the rebate is filing a New Mexico
tax return, and non-profits are tax exempt.
- Do I have to spend a minimum amount in order to qualify?
No.
- Is there a cap on New Mexico expenditures?
No. The more you spend, the more you get back.
- Is there an annual cap/allocated fund?
No.
- Any caps?
Just on cast/talent. $20M cap, meaning a maximum rebate of $5M on cast/talent.
- Is there a certain percentage I must film in New Mexico in order to qualify?
No. Even if you film one day in New Mexico, the expenditures for that one day
will qualify.
- Is there a certain percentage of New Mexico crew I must hire in order to qualify?
No. But keep in mind since out-of-state crew do not qualify, the more New
Mexico crew members you hire, the greater the rebate.
- Do I have to pre-qualify or “get in line”?
No.
- When should I apply?
Not until you’re greenlit and opening New Mexico production offices.
- Back to that out-of-state director and producer thing…
Wow, you’re pushy. Sorry, no. And Lisa is not available, and she will tell you the
same thing.
- Must I register my production company in the State of New Mexico?
No.
- Must I use a New Mexico producer or production company in order to qualify?
No.
- Must I use a New Mexico bank and have a New Mexico bank account?
No. (Though vendors are always a little more willing to accept in-state checks, and possible “holds” are usually avoided by using a local bank)
- How do we receive our money?
By filing a New Mexico tax return.
- How long does it take to get the rebate?
Approximately 60 – 75 days.
- It seems too good to be true. Is it really that simple?
Yes.
- I still have some unanswered questions. What do I do?
Read the 8-page document on our web site, which explains the program in great
detail.
- I already did. And I still have questions.
Contact Jennifer at the New Mexico Film Office: jennifer@nmfilm.com or 505-476-5610 or Jerry Montoya, New Mexico Taxation & Revenue Dept: jerrym@state.nm.us or 505-827-0929
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