Nonresident Below-the-Line-Crew Credit (NRCE)


  • NRCE/GIVEBACK FORMS Pre-FY24 (principal photography date BEFORE July 1, 2023) production NRCE spreadsheet link
  • NRCE/GIVEBACK FORMS FY24 (principal photography date AFTER July 1, 2023) production NRCE spreadsheet link
  • Giveback is only for productions whose first day of principal photography is on or before June 30, 2023.
  • The NRCE calculation can be found on page 6 of the FYI-370.

The Non-Resident Below the Line Crew (NRCE) program in New Mexico offers a tax credit equal to 15% of wages paid to below-the-line crew members who are not residents of New Mexico and who contribute directly to the production of films or commercial audiovisual projects in the state. Key aspects of the program include:

For Non-Film Partners:

1. Eligibility Criteria

- Only non-resident below-the-line (BTL) crew members are eligible.
- Services rendered in New Mexico qualify.
- Excludes payments to certain positions (producers, directors, writers, cast, and production assistants) and personal services businesses.

2. Credit Limitations

- Capped at 15% of the production's total New Mexico budget for below-the-line crew wages.
- Positions allowed based on the final New Mexico budget (total number of positions not to exceed twenty):

    - Up to 5 positions for budgets up to $2,750,000.     
    - Up to 10 positions for budgets > $2,750,000 and up to $7,500,000.
    - Up to 15 positions for budgets > $7,500,000 and up to $11,000,000.
    - Additional positions for every $10,000,000 increase beyond $11,000,000.
    - 5 extra positions for a television pilot ordered to series intended for New Mexico production.

For Film Partners:

1. Eligibility Criteria
- Applies to non-resident below-the-line crew.
- Services rendered in New Mexico.
- Excludes payments to specific positions and personal services businesses.

2. Credit Benefits
- Before July 1, 2028: Eligible wages up to 100% of resident below-the-line wages.
- 72-hour notice of opportunity to be hired as below-the-line crew provided to residents.
- After July 1, 2028, limitations and requirements are identical to those for non-film partners.

Film Partner Guidelines for Compliance with 72-Hour Notice Requirement:
1. Position Identification:
    - Clearly identify the non-resident below-the-line positions the production is looking to fill.
    - The notice should include details such as name, state of residency, position titles, job descriptions, and expected start dates.

2. Proof of Resident Crew Outreach/Documentation:
- Maintain records of attempts made to fill positions with resident crew members.
- Document the outreach efforts, including job postings (NMFO bulletin board, IATSE Local 480 blasts, etc.), emails, or notifications sent to resident crew members or collective bargaining units representing them.
- Provide reason/justification that production did not hire the resident crew.

3. Job Posting Requirements:
- Ensure job postings are:
    - Clearly visible and accessible to resident below-the-line crew.
    - Posted for a minimum of seventy-two hours.
    - Detailing job details, qualifications, and application instructions.

Submission to New Mexico Film Office:
- Submit documented proof of compliance with the seventy-two-hour notice and resident crew outreach efforts to the New Mexico Film Office for approval.