1. Filing entity must be a Film Production Company

• A “Film Production Company” is: “a person that produces one or more films or any part of a film”. This is the entity that is listed on the Film Office’s project registration that incurs the costs for the project and then files for the credit.
  
  

2. Project must be a “film” or a commercial audio-visual product

• “Film” means a single media or multimedia program, excluding advertising messages other than national or regional advertising messages intended for exhibition that is fixed on film, digital medium, videotape, computer disc, laser disc or other similar delivery medium; can be viewed or reproduced; is not intended to and does not violate a provision of Chapter 30, Article 37 NMSA 1978 (which relates to materials viewed by minors); and is intended for reasonable commercial exploitation for the delivery medium used.

• A “commercial audiovisual product” means a film or video game intended for commercial exploitation.
  
  

3. Project must be funded and greenlit prior to registration

• The project must be funded and Proof of Funds is required. See below.

• The project must be greenlit.
  

4. Project must be intended for exhibition and reasonable commercial exploitation

• The project (or product) must be commercially viable – available to the public either via purchase or because media buys are in place. 
  

What types of projects qualify?  

*this is not an exhaustive list

*Additional Requirements

Certain Commercials
Commercials require a signed letter from the Ad Agency or Client describing the relationship with the Production Company and confirming which entity is claiming the credit.

• Regional – Proof of more than one media buy is required.

• National – Proof of national media buy is required.

• Internet – Proof of a media buy (as equates to “ad space”) is required. 

EPKs
EPKs may qualify if the production company filing for the EPK is not the same as the company filing for the project featured in the EPK.

Standalone television pilots
Pilots that are not going straight-to-series require a signed letter from Parent Company verifying the production is intending production of the series in New Mexico if the Pilot is “picked up” and ordered to series. If the Pilot is shot in NM but the first season is not shot in NM, the Pilot will not be eligible for the additional 5%. 

Proof of Funds

As part of the registration process for the New Mexico Film Tax Credit Incentive, the New Mexico Film Office (“NMFO”) will conduct a verification review of all submitted proof of funds documentation. The documentation required for this proof of funds can vary depending on the type of production, the financiers involved, and the financial stability of the entities involved. All productions must provide proof of funds in a form satisfactory to the NMFO. All productions are required to provide proof of funds, which may be combined to represent at least 75% of the submitted production budget. Documentation demonstrating proof of funds may include, but is not limited to, the following:

Production is being produced by a known studio or production company

1. Must have a track record and have recently produced productions of a similar scale.
2. Producer must be in ‘good standing’ as a producer in New Mexico.
3. Must have a letter of commitment from the studio or production company confirming funding of the project through the registrant. The form of commitment may vary depending on the funding entity and industry practice and must be acceptable to NMFO.

A Financing agreement with a known studio, financier, or distributor agreeing to provide funding.

1. Must have a track record and have recently financed productions of a similar scale.
2. May include ‘cash flow’ documentation that promises financing in tranches.
3. Must be a written agreement between the financing entity and the registrant (taxpayer).
4. Financier must be in ‘good standing’ in New Mexico.

A verified bank balance with a letter from the account holder committing those funds to this production.

1. Account holder must be registrant (taxpayer) or include a financing agreement with account holder and registrant.
2. Must be ‘liquid’ cash account or a checking account readily available for immediate use in production.
3. Investment accounts, securities, bonds, or other funds subject to market fluctuation or restrictions are not acceptable unless converted to cash or otherwise approved by NMFO.
4. Company must be in ‘good standing’ in New Mexico.

NMFO may independently verify the issuing institution or signatory.

‘Good Standing’ means that the company or producer, as determined by NMFO in its discretion:

1. is properly registered and active in its jurisdiction of formation,
2. does not have existing outstanding debts, a history of outstanding debts on other productions, or is known to be in material default, bankruptcy, or insolvency proceedings, and
3. with reasonable research conducted by NMFO, it can demonstrate that it can meet the commitment. Reasonable research may include a review of publicly available information about the company or producer, including, but not limited to, news sources, litigation history, financial disclosures, and industry reputation.

“Track Record” means producing projects with the same or higher budget, a history of funding similar projects, not in default or bankruptcy, has a market cap to support this level of production, and no history of failed funding. NMFO may also consider the consistency and recency of the projects.

All determinations of proof of funds rest solely with the NMFO and further documentation may be required in the discretion of the Director. NMFO may consider the totality of the circumstances, including the consistency of a company’s production and financing history, when making such determinations. NMFO also reserves the right to require updated or additional proof of funds at any stage of the production lifecycle to ensure continued financial viability for the purposes of the New Mexico Tax Credit Incentive.