Welcome to New Mexico!

We are delighted you are considering our beautiful state to film your next project. We have an incredible film community of crew members, actors, directors, writers, editors and producers who, like you, want to make great art. 

Our office is available to help you and facilitate your experience.  As of July 1st, 2019, our new film incentive goes into effect.

Check out our website for updates on all the new and interesting developments.

We look forward to working together,

Todd Christensen

Director, New Mexico Film Office

GENERAL QUESTIONS

Is it a rebate or a credit? NMFO

It’s actually a refund as New Mexico offers a “refundable tax credit” for film and television production. In other words, the production receives a cash refund (which some may refer to as a rebate) for the full qualifying amount, with no brokering required, when a state return is filed. The NM Tax & Revenue Department literally sends a check or deposits the amount into the filing entity’s bank account. If your company has a tax liability in New Mexico, the liability is offset by any approved credit amount.

What is the percentage of credit your state offers? NMFO/ TRD

The refund amount is 25% as applied to each total qualifying expenditure; however, there is an extra 5% available for certain qualifying projects dependent upon their NM budgets: 1) for TV Series with an order of six episodes based and a minimum of $50K per episode OR 2) for projects that are deemed a “stand alone pilot” intended for series in New Mexico (if picked up) may also qualify OR 3) for projects (e.g. Features) that utilize the premises of a qualifying production facility or stages; OR 4) shooting in rural areas (located at least 60 miles of the exterior boundaries of certain counties, aka The SMZ). There is also a limited number of nonresident BTL crew that may qualify for a flat 15% (or an NMFO Director approved 20%) of your total NM BTL crew wages ($): through the Nonresident Crew Exceptions program.

When should I apply? NMFO

To begin the incentive program process, the new registration form and all required documents must be submitted to NMFO at least 30-days before principal photography begins.  See REGISTRATION FORMS

When does your fiscal year begin? In other words, when is your “new pot of money” available? NMFO

The state’s fiscal year begins July 1st of each year and ends June 30. FY20, for instance, is July 1, 2019 through June 30, 2020.

Will I have to pre-qualify prior to production? NMFO

NMFO will email the production a certification letter stating the certified refundable tax credit amount, determination if a CPA audit is needed and confirm the date of the last qualifying expenditure.

PROJECT QUALIFICATIONS

What determines if a project qualifies? NMFO

If a project is considered a “commercial audiovisual product,” it is likely to qualify. Also defined as a “film” for the purposes of this incentive program, it must be commercially viable – that is available to the public to be viewed either through a media buy or direct purchase. The production or product must be able to be fixed on a medium, reproduced, and intended for commercial exploitation. The entity registering is then considered the “film production company,” and the qualifying expenditures are submitted after they are made as part of the refund process.

What are some types of projects that qualify? NMFO

In addition to features, television, shorts, documentaries and commercials, other types of projects that may qualify are music videos, mobile apps, video games, virtual reality (VR), animation, internet commercials and webisodes. Elements and content development for websites or software do not.

Must I register my production company in the State of New Mexico?

The production company needs to register with the Taxation and Revenue Department for a Customer Account only. This needs to be done prior to the Film Credit application being submitted. If you have any questions, please email TRD-FilmCredit@state.nm.us or call 505.795.1735.

Must I use a New Mexico producer or production company in order to qualify? NMFO

No. However, a Federal Identification Employer Number (FEIN) would be required to file.

Will I have to spend a minimum amount in order to qualify? NMFO

No—we have no minimum spend. However, the production must shoot at least one day of principal photography in New Mexico.

Is there a certain percentage of New Mexico crew I must hire in order to qualify? NMFO

No. However, the more resident crew members hired, the higher your percentage of rebate on NM resident crew wages.

Must I use a New Mexico bank? NMFO

No.

Can I get a loan for my project from a local New Mexico bank? NMFO

Yes. Many local banks will loan to production companies against the incentive—depending on their own specific loan qualifications and approval processes.

What are the basic qualifications for feature films? NMFO

In addition to the documents submitted to the NMFO (see the 5 PHASES section on nmfilm.com), the project must be intended for “reasonable commercial exploitation;” all of your New Mexico obligations must have been met (e.g. vendors, crew and actors paid); and, a state acknowledgement and logo must be included in the screen credit for all projects with a screen crawl (including television episodes) see “END CREDITS” section here in FAQs.

►Is there a map that specifically outlines which areas of New Mexico qualify for the rural 5% uplift? TRD

Yes! Here it is: MAP OF NM / RURAL AREAS OUTSIDE THE 60 MILE ZONE of ABQ/SANTA FE CORRIDOR

What Television Projects qualify for the additional 5% credit? NMFO

For series that have been ordered by a network, and that order has at least 6 episodes to be shot in NM (which may include the pilot), and each episode has a NM budget of at least $50K each, then the production may qualify for a 30% credit on all qualifying direct production expenditures except nonresident performing artists. Note: the episode may not be fully shot in NM, but at least $50K of it applies to NM. Proof of order (e.g. a letter from the Network) must be provided to the Film Office along with a list of the applicable episode titles and NM budgets. This documentation is required with the NMFO project registration. Standalone pilots intended for series in New Mexico (if picked up) may also qualify for the additional 5%. Note: all episodes require a state acknowledgement and a state logo during the end crawl. see “END CREDITS” section here in FAQs.

Do documentaries qualify? NMFO

Yes – the same rules apply as to other projects: the documentary must be intended for exhibition and commercial exploitation.

Do commercials qualify? NMFO

Yes, as long as they’re a regional or national broadcast. Internet Commercials may also qualify. All commercials require proof of media buys and often a letter is needed from the client or ad agency explaining the relationship of the parties involved and an acknowledgement as to who will be claiming the credit.

What do you consider a “regional commercial”? NMFO

Regional commercials air in more than one state and have media buys for more than one state. If a local commercial happens to air in Texas because that cable company’s broadcast has “spill-over” across the border, that would NOT qualify. You must purchase media buys for more than one state and provide that information to the film office.

What is a “media buy”? NMFO

The media buy is basically equivalent to purchasing “ad space.” For Regional Commercials, at least two different regions, where the commercial will air, must be purchased – in other words, not just in-state. For the internet, it may be the “space” (e.g. commercials that stream for :15 before Yahoo News). Videos streaming within a company’s own website would not qualify as there would be no “ad space” purchased.

What other projects may qualify for the incentive program? NMFO

Content-based Mobile Apps and Video Game prototypes may qualify when they are commercially viable and are for public purchase or for download through a mobile platform. Only newly created elements qualify for subsequent versions. Software apps and bug fixes to the prototype do not qualify. (Nor do related licenses as they likely are vendor purchases that are not subject to state taxation.) Note: these projects are reviewed on a case by case basis.

Do music videos qualify? NMFO

Yes, as all projects, as long as they’re intended for exhibition and commercial exploitation.

Do industrials or training videos qualify? NMFO

No, unless they are intended for commercial exploitation – consider whether they will be distributed in the commercial marketplace. If their purpose is “in-house” (used to train employees, etc…) or for one client, then no, they will not qualify. If it is a product for public purchase and viewing, then it will likely qualify.

Do student films qualify? NMFO

Yes, as long as they’re intended for exhibition and commercial exploitation and fall under a project type as listed on the website. Example: a short intended for submission to film festivals will qualify; however, trailers will not.

Do print ads qualify? NMFO

No. In fact, no marketing or promotional expenses qualify. Print ads, screening costs, trailers, web design, etc., do not qualify as projects or as expenses.

What are my obligations after production besides my tax application submission? NMFO

All qualifying projects must notify the Film Office once they’ve paid all their bills, send a list of locations where they shot in NM when applicable, submit post-accounting contact information as soon as it’s available, and acknowledge the State of New Mexico in any screen credits. Features and episodes also require a Logo in addition to an acknowledgement. Don’t forget additional eligibility requirements, like Media Buys or documents for the extra 5%, may be needed to be submitted if they did not come with the registration form. (Also, if your project has a poster, we’d love to display it in our office!) See How the NM Tax Credit Process Works for all details.

What does NMFO have to report?
According to SB2 (as of 7/1/19): NMFO

“7-2F-4. REPORTING—ACCOUNTABILITY —

  1. The economic development department shall:

(1) collect data to be used in an econometric tool that objectively assesses the effectiveness of the credits provided by the Film Production Tax Credit Act;

(2) track the direct expenditures for the credits;

(3) with the support and assistance of the legislative finance committee staff and the taxation and revenue department, review and assess the analysis developed in Paragraph (1) of this subsection and create a report for presentation to the revenue stabilization and tax policy committee and the legislative finance committee that provides an objective assessment of the effectiveness of the credits; and

(4) report annually to the revenue stabilization and tax policy committee and the legislative finance committee on aggregate approved tax credits made pursuant to the Film Production Tax Credit Act and the past performance of and current outlook for the Film Production Tax Credit Act, including:

(a) the aggregate amount of credits paid subject to the aggregate amount allowed pursuant to Subsection B of Section 7-2F-12 NMSA 1978 in the prior fiscal year and the current amount of claims in the queue pursuant to Subsection C of Section 7-2F-12 NMSA 1978;

(b) the aggregate amount of approved credits paid in the prior fiscal year for expenditures by certain film production companies that are not subject to the aggregate amount of claims allowed pursuant to Section

7-2F-12 NMSA 1978;

(c) the number of applicants receiving the additional credit for television pilots and series pursuant to Section 7-2F-7 NMSA 1978;

(d) the number of applicants receiving the additional amount for expenditures made in certain areas of the state pursuant to Section 8 of this 2019 act;

(e) the aggregate amount of direct production expenditures and post production expenditures in New Mexico during the prior fiscal year, shown by county;

(f) the total number and wages of

New Mexico residents employed by film production companies in the prior fiscal year; and

(g) any other relevant information, as determined by the division.

  1. The division shall develop a form on which the taxpayer claiming a credit pursuant to the Film Production Tax Credit Act shall submit a report to accompany the taxpayer’s application for that credit.
  2. With respect to the production on which the application for a credit is based, the film production company shall report to the division at a minimum the following information:

(1) the total aggregate wages of the members of the New Mexico resident crew;

(2) the number of New Mexico residents employed;

(2) the number of New Mexico residents paid;

(4) the total number of hours worked by New Mexico residents;

(5) the total expenditures made in New Mexico that do not qualify for the credit;

(6) the aggregate wages paid to the members of the nonresident crew while working in New Mexico;

(7) the aggregate amount of direct production expenditures and postproduction expenditures in New Mexico in the prior fiscal year, shown by county; and

(8) other information deemed necessary by the division and economic development department to determine the effectiveness of the credit.

  1. For purposes of assessing the effectiveness of a credit, the inability of the economic development department to aggregate data due to sample size shall not relieve the department of the requirement to report all relevant data to the legislature. The division shall provide notice to a film production company applying for a credit that information provided to the division may be revealed by the department in reports to the legislature.”

Does New Mexico require end credits to get the incentive?
Yes. Please refer to SB2 (as of 7/1/19): NMFO

       END CREDITS:

  1. A production for which the new film production tax credit is claimed pursuant to Paragraph (1) of Subsection B of this section shall contain an acknowledgment to the state of New Mexico. Unless otherwise agreed upon in writing by the film production company and the division, the acknowledgment shall be in the end screen credits that the production was filmed in New Mexico and a three-second static or animated state logo provided by the division shall be included and embedded in the following:

(1) end screen credits before the below-the-line crew crawl for the life of the project of long-form narrative film productions; and

(2) body of the program for the life of television episodes, the placement of which shall be:

(a) in the opening sequence;

(b) as a bumper into or out of a commercial break; or

(c) in a prominent position in each single project’s end credits with no less than a half screen exposure, but not covering content.

What are some common film definitions in the state of New Mexico? Please refer to SB2 (as of 7/1/19):

DEFINITIONS:

SECTION 4. Section 7-2F-2 NMSA 1978 (being Laws 2003, Chapter 127, Section 2, as amended) is amended to read:

“7-2F-2. DEFINITIONS — As used in the Film Production Tax Credit Act:

  1. “affiliated person” means a person who directly or indirectly owns or controls, is owned or controlled by or is under common ownership or control with another person through ownership of voting securities or other ownership interests representing a majority of the total voting power of the entity;
  2. “background artist” means a person who is not a performing artist but is a person of atmospheric business whose work includes atmospheric noise, normal actions, gestures and facial expressions of that person’s assignment; or a person of atmospheric business whose work includes special abilities that are not stunts; or a substitute for another actor, whether photographed as a double or acting as a stand-in;
  3. “below-the-line crew” means a person in a position that is off-camera and who provides technical services during the physical production of a film. “Below-the-line crew” does not include a person who is a writer, director, producer or background artist or performing artist for the film;
  4. “commercial audiovisual product” means a film or a video game intended for commercial exploitation;
  5. “direct production expenditure” means a transaction that is subject to taxation in New Mexico and is certified pursuant to Subsection A of 7-2F-12 NMSA 1978:

(1)       including an expenditure for:

(a)       payment of wages, fringe benefits or fees for talent, management or labor to a person who is a New Mexico resident;

(b)       payment for standard industry craft inventory when provided by a below-the-line crew that is a New Mexico resident in addition to its below-the-line crew services;

(c)       payment for wages and per diem for a performing artist who is not a New Mexico resident and who is directly employed by the film production company; provided that the film production company deducts and remits, or causes to be deducted and remitted, income tax from the first day of services rendered in New Mexico at the maximum rate pursuant to the Withholding Tax Act;

(d)       payment to a personal services business for the services of a performing artist if: 1) the personal services business pays gross receipts tax in New Mexico on the portion of those payments qualifying for the tax credit; and 2) the film production company deducts and remits, or causes to be deducted and remitted, income tax at the maximum rate in New Mexico pursuant to Subsection H of Section 7-3A-3 NMSA 1978 on the portion of those payments qualifying for the tax credit paid to a personal services business where the performing artist is a full or part owner of that business or subcontracts with a personal services business where the performing artist is a full or part owner of that business; and

(e)       any of the following provided by a vendor: 1) the story and scenario to be used for a film;

(2)       set construction and operations, wardrobe, accessories and related services; 3) photography, sound synchronization, lighting and related services; 4) editing and related services; 5) rental of facilities and equipment; 6) the first one hundred fifty dollars ($150) of the daily expense of leasing of vehicles, not including the chartering of aircraft for out-of-state transportation; however, New Mexico-based chartered aircraft for in-state transportation directly attributable to the production shall be considered a direct production expenditure; 7) food; 8) the first three hundred dollars ($300) of lodging per individual, per day; 9) commercial airfare if purchased through a New Mexico-based travel agency or travel company for travel to and from New Mexico or within New Mexico that is directly attributable to the production; 10) insurance coverage and bonding if purchased through a New Mexico-based insurance agent, broker or bonding agent; 11) subcontracted goods and services from businesses; provided that the ordinary course of business of the vendor procuring the goods and services from the subcontractor directly relates to standard film industry goods and services; and 12) other direct costs of producing a film in accordance with generally accepted entertainment industry practice; and does not include an expenditure for:

(a)       a gift with a value greater than one hundred dollars ($100);

(b)       artwork or jewelry, except that a work of art or a piece of jewelry may be a direct production expenditure if: 1) it is used in the film production; and 2) the expenditure is less than two thousand five hundred dollars ($2,500);

(c)       entertainment, amusement or

(d)       subcontracted goods or services provided by a vendor when the subcontractors providing those goods or services to the vendor are not subject to state taxation, such as equipment and locations provided by the military, government and organizations that demonstrate to the taxation and revenue department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended or renumbered;

(e)       subcontracted services provided by a vendor when the subcontracted services are provided by a person who is below-the-line crew and is not a New Mexico resident;

(f)        hidden or other indirect service fees, costs, commissions or other remuneration received by third parties and that are not directly paid by the film production company or expressly enumerated on a film production company’s filing to claim a new film production tax credit;

(g)       wages for a person who is not a New Mexico resident and who falsely claims to be a New Mexico resident. The wages of such person shall not be considered an eligible expense for two years from the date in which the person is determined by the taxation and revenue department as having made a false claim, regardless of whether the person becomes a New Mexico resident within that time frame; or

(h)       which the film production company receives funding pursuant to Section 21-19-7.1 NMSA 1978;

  1. “division” means the New Mexico film division of the economic development department;
  2. “federal new markets tax credit program” means the tax credit program codified as Section 45D of the United States Internal Revenue Code of 1986, as amended;
  3. “film” means a single medium or multimedia program, including television programs but excluding advertising messages other than national or regional advertising messages intended for exhibition, that:

(1)       is fixed on film, a digital medium, videotape, computer disc, laser disc or other similar delivery medium;

(2)       can be viewed or reproduced;

(3)       is not intended to and does not violate a provision of Chapter 30, Article 37 NMSA 1978; and

(4)       is intended for reasonable commercial exploitation for the delivery medium used;

  1. “film production company” means a person that produces one or more films or   commercial audiovisual products or any part of a film or commercial audiovisual product;
  2. “fiscal year” means the state fiscal year beginning on July 1;
  3. “New Mexico resident” means an individual who is domiciled in this state during any part of the taxable year or an individual who is physically present in this state for one hundred eighty-five days or more during the taxable year; but any individual, other than someone who was physically present in the state for one hundred eighty-five days or more during the taxable year and who, on or before the last day of the taxable year, changed the individual’s place of abode to a place without this state with the bona fide intention of continuing actually to abide permanently without this state is not a resident for the purposes of the Film Production Tax Credit Act for periods after that change of abode;
  4. “performing artist” means an actor, on-camera stunt person, puppeteer, pilot who is a stunt person or actor, specialty foreground performer or narrator; and who speaks a line of dialogue, is identified with the product or reacts to narration as assigned. “Performing artist” does not include a background artist;
  5. “personal services business” means a business organization, with or without physical presence, that receives payments pursuant to the Film Production Tax Credit Act for the services of a performing artist;
  6. “physical presence” means a physical address in New Mexico from which a vendor conducts business, stores inventory or otherwise creates, assembles or offers for sale the product purchased or leased by a film production company and the vendor or an employee of the vendor is a resident;
  7. “postproduction expenditure” means an expenditure, certified pursuant to Subsection A of Section 7-2F-12 NMSA 1978, for editing, Foley recording, automatic dialogue replacement, sound editing, special effects, including computer-generated imagery or other effects, scoring and music editing, beginning and end credits, negative cutting, soundtrack production, dubbing, subtitling or addition of sound or visual effects; but not including an expenditure for advertising, marketing, distribution or expense payments;
  8. “principal photography” means the production of a film during which the main visual elements are created;
  9. “qualified production facility” means a building, or complex of buildings, building improvements and associated back-lot facilities in which films are or are intended to be regularly produced and that contain at least one:

(1)       sound stage with contiguous floor space of at least seven thousand square feet and a ceiling height of no less than eighteen feet; or

(2)       standing set that includes at least one interior, and at least five exteriors, built or re-purposed for film production use on a continual basis and is located on at least fifty acres of contiguous space designated for film production use; and

  1. “vendor” means a person who sells or leases goods or services that are related to standard industry craft inventory, who has a physical presence in New Mexico and is subject to gross receipts tax pursuant to the Gross Receipts and Compensating Tax Act or income tax pursuant to the Income Tax Act or corporate income tax pursuant to the Corporate Income and Franchise Tax Act but excludes a personal services business and services provided by nonresidents hired or subcontracted if the tasks and responsibilities are associated with the standard industry job position of director, writer or producer.”

Thank you for considering New Mexico to produce your project. Our competitive film credit, awe-inspiring locations and professional crew will assist you in making a cost-effective, high-quality project.

The New Mexico State Film Office (NMFO) is a division of the New Mexico Economic Development Department, which serves the film and television industry locally, nationally and internationally. The office’s purpose is to market the state to this industry, service the productions and promote jobs for New Mexico residents. The division offers resources to producers, film crew and local filmmakers and assists with the scouting of potential filming locations. The division consults with productions regarding the financial aspects of their projects, guiding them through the incentives such as the 25% to 30% (with an additional 5% in certain instances) Refundable Film Production Tax Credit and the Job Training Incentive Program for Film & Multimedia. The division also connects productions with crew, vendor services and film liaisons throughout the state.

The division focuses on four (4) main initiatives: (1) Recruitment: Television, Feature Productions and Digital Emerging Media Projects/Companies; (2) Workforce Development; (3) Statewide Industry Outreach and (4) Film Data Capture and Reports.

 TRD CERTIFIED FYIs aka FYI-370 INFORMATION REGARDING FILM PRODUCTION TAX CREDITS 

The NMFO also collects statistical data from productions to assess the effectiveness of the refundable tax credit.

 

25% to 30% Refundable Film Production Tax Credit

An additional 5% applies for:

  • RURAL; work, services or items provided on location for a production of a film or commercial audiovisual product that is located in New Mexico but at least 60 miles outside of the exterior boundaries of Santa Fe and Bernalillo counties (click below for Rural Credit Map);
  • STAND ALONE PILOT intended for series television in New Mexico or on series television productions intended for commercial distribution with an order for at least six episodes in a single season; provided that the New Mexico budget for each of those six episodes is fifty thousand dollars or more;
  • QUALIFIED PRODUCTION FACILITY: EITHER ON A SOUND STAGE OR A RANCH SET 

RURAL MAP OF NM / RURAL AREAS OUTSIDE THE 60 MILE ZONE of ABQ/SANTA FE CORRIDOR

The NMFO determines whether a project is eligible to apply for the Refundable Film Production Tax Credit, which includes determining the percentage of the credit that would apply to the qualifying expenditures for that project. Within 5 business days of receiving your Registration documents (Project Registration, Tax Information Authorization (TIA), NM Budget Topsheet (provided by NMFO), Production Budget Topsheet, and if applicable, W-9 form for the Film Crew Advancement Program, a certification letter that states the approved refundable tax credit amount, determination of a CPA audit (if needed) and the confirmation date of the last taxable NM expenditure will be sent to you.

 

NEW MEXICO PRODUCTION POSITIVES:

No minimum spend requirement

No minimum resident hire requirement

No application fees

No brokers needed

Note: at least one day of principal photography must take place in New Mexico.

ELIGIBLE PROJECTS

General Requirements to Participate

For projects to be eligible for the incentive, the following must apply:

The filing entity must be a “Film Production Company.”

The definition of 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. The filing entity (“film production company”) cannot be tax-exempt (i.e. a non-profit organization).

The project must be a “film” or “commercial audiovisual 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.

The production must be intended for exhibition and reasonable commercial exploitation. In other words, the project (or product) must be commercially viable – available to the public either via purchase or because media buys are in place. Examples include, but are not limited to, the intention for theatrical release, submission to film festivals for “pickup,” television broadcast, and certain media subscriptions, etc.

The following types of production will qualify as long as the statements above apply:

Feature films

Independent films

Television (MOW, pilots, series, reality)

Certain Commercials and EPKs*

Documentaries

Student films

Short films

Animation

Video games

Webisodes

Music videos

Infomercials

Content-Based Mobile Apps

VR

Multi-Media

New Media

Standalone Post Production

Examples of types of projects that are not eligible: PSAs, print campaigns, trailers, promotional or marketing products, web design or development, live events or commissioned projects for a single client.

*See the additional requirements under Key Points Per Project Types below

Applicable Percentage of Credit based on Project Type

30% Credit for Qualifying TV on Resident Labor for Certain Features

25% Credit for all Other Qualifying Projects

The refund amount is 25% as applied to each total qualifying expenditure; however, there is an extra 5% available for certain qualifying projects dependent upon their NM budgets: 1) for TV Series with an order of six episodes based and a minimum of $50K per episode OR 2) for projects that are deemed a “stand alone pilot” intended for series in New Mexico (if picked up) may also qualify OR 3) for projects (e.g. Features) that utilize the premises of a qualifying production facility or stages; OR 4) shooting in rural areas (located at least 60 miles of the exterior boundaries of certain counties, aka The SMZ). There is also a limited number of nonresident BTL crew that may qualify for a flat 15% (or 20% NMFO Director approved) through the Nonresident Crew Exceptions program.

All Projects: Additional Production Requirements:

Before the incentive can be processed, the following requirements must have been completed:

The Production’s post-accounting contact information has been posted online at nmfilm.com.

Projects that have scrolling end credits contain an acknowledgment that the production was filmed in “the State of New Mexico.” (COMING SOON NEW NMFILM LOGO LINK)

In addition to an acknowledgement, television episodes and long-form narrative films (e.g. features) must have included a state logo provided by the NM Film Office in the end credits (screen crawl).

The Production paid all obligations the film production company has incurred in New Mexico and notified the film office when all obligations were paid (e.g. when the last check was “cut.”)

Key Points Per Project Type:

To assist in determining eligibility, below are additional considerations and requirements to the information provided above, as relates to specific project types:

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. (Reminder, PSAs do not qualify.)

National – Proof of national media buy is required.

Internet – Proof of a media buy (as equates to “ad space”) is required. Commercials only available on the client/owner’s website do not qualify as they are considered promotional.

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

If your commercial does not qualify, consider applying for NTTC Type 16s.

Content-Based Mobile Applications:

Software products are not considered Mobile Apps for the purpose of this incentive.

Information must be provided as to who owns the content and creative elements created for the App.

The App must be available to the public via an “app store” or for purchase.

Documentaries:

Be sure to apply for the credit each year in which expenses are incurred for the project, not at the project’s end.

Qualified Production Facilities:

As defined in SB2 (new film law):

  1. “qualified production facility” means a building, or complex of buildings, building improvements and associated back-lot facilities in which films are or are intended to be regularly produced and that contain at least one:

(1)          sound stage with contiguous floor space of at least seven thousand square feet and a ceiling height of no less than eighteen feet; or

(2)          standing set that includes at least one interior, and at least five exteriors, built or re-purposed for film production use on a continual basis and is located on at least fifty acres of contiguous space designated for film production use; and

COMING SOON REGULATIONS FOR extra 5% SHOOT DAY MINIMUMS on QPF (Ranch Sets or Sound Stages).

​​ “Principal days” means that crew members are working at least 8 hours within a 24 hour period at the QPF and that talent is on camera within those 8 hours (call time to strike). Ultimately, the production rents the location for the day whether it is used for a half or a whole day of shooting (as verified on the call sheets or production reports).

Principal photography may occur anywhere on the premises of the owned and designated property when utilizing a sound stage as a QPF. It is not restricted to stage work.

A production budget topsheet, including all call sheets must be submitted to the film office to confirm the eligibility.

Once the eligibility requirements are met, the applicable direct production expenditures are the qualifying payments made to off-camera NM residents for the duration of production and their services in-state.

ATL that are “First Year Residents” cannot be qualified for this additional incentive.

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%. Exceptions may be considered by the Director under extenuating and unforeseen circumstances (e.g. re-casting).

Standalone Post Production

When projects are not shot in NM but Post Production services only are rendered here, a signed letter is required from the Client describing the relationship with the Post House and confirming which entity is claiming the credit.

Standalone Post Production requires a separate Tax Agreement than other project types.

Television Series

For the additional 5% to apply to a Television Series, the Production Company must provide a title list of all episodes that have or will shot in New Mexico prior to submitting the tax application after production. The Pilot is considered as part of the minimum requirement of 6 episodes when production is shooting “straight-to-series.”

For the additional 5%, the Parent or Production Company must also provide a NM budget per each episode in the order of 6, which may equate to a top sheet (per episode). This is needed to determine if the minimum budget requirement of $50k per episode will be met as a condition of eligibility.

For the additional 5% to apply to nonresident and resident actors, the Production Company must produce more than one television series in a given tax year: (1) a television series completes at least one season of the scheduled episodes for that series in NM and (2) the Film Production Company certifies the intention to begin or produce (at least one) subsequent, different series in NM. Please contact the NMFO Director for more details.

 

If you would rather apply for NTTC instead of the Film Incentive program:

https://nmfilm.com/wp-content/uploads/2018/09/APP-FOR-NONTAXABLE-TRANSACTION-CERTIFICATES.pdf

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)

Note:

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.

Who Qualifies:

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

The Process:

Complete the following forms (available at nmfilm.com):

Film Production Company Registration (Part One & Part Two)

Application for Business Tax Identification Number

Online CRS Registration

Application for Non-Taxable Transaction Certificates – NTTCs

NTTC FYI 204 For Your Information:

Email the completed forms:TRD-FilmCredit@state.nm.us

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.

For questions contact William Wheat, Bureau Chief, Audit and Compliance Division – District A, P.O. Box 5374, 1200 South St. Francis Drive, Santa Fe, NM 87502-5374. Phone 505-827-0920 or Email: William.Wheat@state.nm.us

NM FILM TAX CREDIT PROCESS

REGISTRATION must be completed 30 days before principal photography (7 days before for commercial projects)

PHASE I: Production Inquiry about filming in NM:  For general inquiries about filming here or to determine if your project is eligible for the NM refundable tax credit, email us at nm.film@nmfilm.com.   

Please provide the following information in the email:

  • Name, phone and email
  • Production Company and production title
  • Dates of production
  • Estimated budget

Once we have received your inquiry, we will be in contact regarding specific questions you have about the incentive.  If your project has a preliminary production schedule in place

and financing completed to begin filming in NM, please proceed to Phase II.

NMFO Contact information:

  • For NMFO incentive questions/process:
  • For film location assistance / location packages:
    • Don Gray, Contract Locations Coordinator: don@nmfilm.com or 505-476-5603
  • For press release questions / Film Crew Advancement Program (FCAP) information:
  • For general questions and information on shooting at state owned buildings:
  • For tax questions related to what expenditures qualify and the RPD-41381 Application for Film Production Tax Credit, please contact:
  • For tax questions related to filing tax returns or the RPD-41228 Film –Related Tax Credit Claim Form, please contact:

 

Phase II: Complete Registration & Agreement Forms (30 days before principal photography begins): Complete and submit the following forms to nm.film@nmfilm.com

All of these forms are required.  Please make sure they are complete and correct – incomplete forms will be returned until completed.  

 

 

PHASE III: Certification Letter from NMFO (sent within 5 business days of receiving your Phase II documents) &  Pre-Production meeting This “certification letter” we send you states the approved refundable tax credit amount, determination of a CPA audit (if needed) and the confirmation date of the last taxable NM expenditure. 

 

The NMFO will coordinate a pre-production meeting (at least 2 weeks before principal photography begins) to include representatives from NMFO and the NM Tax. & Rev. department (TRD).  An NMFO Pre-Production Meeting Agenda, TRD Pre-Production Meeting Guidelines document will be emailed beforehand and will cover the following and more: review of the certification letter from NMFO, qualifying expenses, NM vendors, CPA audits (for productions whose credit is over $5M), performing artists, approved non-resident crew exceptions (NRCE), outsourcing forms, Declaration of Residency Forms (DOR’s), Film Crew Advancement Program (FCAP), NMFO press release, call sheets, NMFO stats form and the process/timeline for the film tax credit application.

 

Please be aware:

 

  • Press Release questionnaire (an official press release must be published 1 week prior to principal photography)

 

  • If information on the registration form changes, you must update it ASAP and re-submit a new registration form so that NMFO can accurately track this information and has the most updated information for the tax audit. Note: you will also have to resubmit the forms if the filing entity or the authorized representative who signed the forms changes. Please remember that the qualifying expenses must be incurred by the tax filing entity (Dream Catcher Productions, LLC.) listed on these forms.

 

PHASE IV: Principal Photography/Post-Production/Stand Alone Post: Please reach out to NMFO with any questions/issues during this phase.  The primary contacts are Todd Christensen, Film Office Director: todd.chistensen@nmfilm.com or 505-476-5656,

 

Here are some additional resources NMFO provides:

  • Online Industry Directory: Search for crew, production vendors, post-production and support services in New Mexico. Choose either the crew or support services buttons, then search via categories.
  • Statewide Liaison Network: A film-friendly community network of city specific film offices and liaisons throughout the state, committed to assisting your production in their areas.
  • Non-Resident Crew Exceptions (NRCE) program: The NRCE Program establishes a flat 15% credit (for wages only) on Below-the Line (BTL) nonresident industry crew per 15% of the NM total BTL budget (20% allowed in certain instances).
  • Film Crew Advancement Program (FCAP): FCAP is a separate incentive for production companies to help create more job opportunities for New Mexico film crew professionals. A production company is reimbursed 50% of a participant’s wages for up to 1040 hours physically worked by the qualifying crew member in a specialized craft position (max. 2 crew members per department). This on-the-job training program is in addition and separate from the NM film production tax rebate .
  • FCAP / Operation Sound Stage (OSS): OSS is a program for military veterans and reserve component members in New Mexico, administered through FCAP of Job Training Incentive Program (JTIP) for Film & Multimedia.
  • Location Database: Search 60,000 photographs of over 8,000 locations in New Mexico. New Mexico’s terrain varies from 12,000 ft. snow-capped mountains to dry, cracked salt flats near the Mexican border. We boast eerie, otherworldly, ultra-modern cool, classic western sets, traditional military, historic Native America, big city skylines, the famed Rio Grande and endless miles of unique landscapes.
  • State-Owned Properties: NMFO facilitates location use of many state buildings and properties, not subject to location fees, throughout the state. These properties house several different state agencies that are all managed by the Facilities Management Division of General Services Department (GSD). Certain restrictions apply, and in some instances, security and personnel fees may be required.
  • Send CALLSHEETS to nm.film@nmfilm.com
  • The completed project must include an approved logo and screen credit in the end crawl/credits.
  • A general production email must be provided to post on NMFO’s website.

 

PHASE V: Starting the Tax Credit Submission Process: Once principal photography or post-production or stand alone post has ended, please provide the following required information and forms to NMFO:

  • Post-accounting contact information (name, email and phone), final vendor list and final crew list.
  • Completed NMFO stats form. Specifics of this form will be discussed in the pre-production meeting. 
  • Confirmation email stating that the production does not have any outstanding financial obligations. This confirmation is needed in order to submit the production’s film tax credit application to NM Tax. & Rev. Department (TRD).
  • Updated registration form (if changed from initial submission).
  • NRCE WORKSHEET (as discussed in pre-production meeting)
  • REMINDER: the tax credit application must be submitted before the date on the approval letter from NMFO (Phase II). *DO NOT SEND DOR FORMS, LEDGERS, BIBLES TO NMFO; TRD WILL REQUEST THESE DURING THEIR AUDIT.*
  • Visit the NM TRD website for guidelines and forms relating to the submission of the application for the film and television tax credit (RPD-41381): http://www.tax.newmexico.gov/Tax-Professionals/film-production-tax-credit.aspx

Please provide the following completed forms to start the NM film incentive process:

1.) PROJECT REGISTRATION FORM: This form is required for all qualifying incentive program projects. This form will also be used to cross-reference information needed for the Certification Letter. It is required that a production submits this form electronically at least 30 business days before principal photography begins.

2.) TRD BUSINESS TAX REGISTRATION FORM: As of 7/1/19, TRD is in the process of making a simplified registration form for individuals who need to create a profile in the TRD system with the production company’s  FEIN#. Until that form is created they are using their Business Registration Update (BTRU) form to register productions.  Taxpayers need to fill out Boxes 2,3,4,7,12 (mark Other), 13 (write Film Production), 20, 21. In box 20, (fill out the owners, presidents, VPs, Treasurers) of the production company. SSNs are required for individuals.  The owner of the company or any of the people listed in box 20 need to sign the form. If the production has more people you want to give access to, you may attach a document to the BTRU with all the information for each person listed in Box 20.

3.) TIA FORM: The purpose of the TIA form allows NMEDD and NMFO to review production companies tax information in order to track the effectiveness of the refundable tax credit program and ensure that payment is accurate and made in a timely matter.  

4.) PRODUCTION BUDGET TOPSHEET: Spreadsheet of production expenditures.  This document will be used to cross-reference the NM budget top sheet needed for the Certification Letter.

5.) CERTIFICATION LETTER: Required before setting up a pre-production meeting.  NMFO will email the production an approval letter stating the approved refundable tax credit amount, determination if a CPA audit is needed and the fiscal year the tax credit is to be submitted / completed. The certification letter will be sent within 5 business days of receiving the registration form. This letter is required to receive the refundable tax credit.

Pre-production Meeting:

NMFO PRE-PRODUCTION MEETING AGENDA: Coming Soon!

TRD PRE-PRODUCTION MEETING AGENDA

PRODUCTION PRESS RELEASE QUESTIONS

FILM CREW ADVANCEMENT PROGRAM (FCAP):This program serves as an incentive for participating companies to provide job opportunities to New Mexico residents who are ready to move up within their department or are adding a new skill set.

Other TRD Forms:

FYI-370 INFORMATION REGARDING FILM PRODUCTION TAX CREDITS

TRD DECLARATION OF RESIDENCY FORM

Film Crew Advancement Program (FCAP) Please note that “Phase I” and “Phase II” must be completed via our on-line portal. 

Film Crew Advancement Program (FCAP):  This on-the-job training program focuses on NM residents working in primarily technical industry positions.  This program serves as an incentive for participating companies to provide job opportunities to New Mexico residents who are ready to move up within their department or are adding a new skill set.  All FCAP participants must have a mentor.  The FCAP program provides a 50% reimbursement of the qualifying participants’ wages for up to 1040 hours physically worked by the crew member.  Companies are approved by the Chair of the JTIP Board. Example: a NM Grip who is ready to move up to the Best Boy position would qualify. The Key Grip would be that crew member’s mentor.

FCAP / Operation Soundstage (OSS): is a sub-program of FCAP for military veterans and reserve component members in New Mexico.  Operation Soundstage adds an additional position on each production to be available specifically to a New Mexico veteran. To be eligible for Operations Soundstage, veterans must be registered with the New Mexico Workforce Connection.  Please contact: Chris Zaffra, State Veterans Coordinator, Jobs for Veterans State Grant (JVSG) Program, Tribal Liaison and Agency Point of Contact for Federal Contractors, New Mexico Department of Workforce Solutions Phone:  (505) 841-8517 or Email:  christian.zafra@state.nm.us.

FCAP Information

FCAP Approved Job Titles

FCAP Trainee Application

Step one: Email the production companies Federal W-9 form to rochelle@nmfilm.com

Step two: The company must create an online account (“user id” and “password”) through the online portal. CLICK HERE to register and create an online account (Note: the portal works best with Chrome, Safari and Firefox.  If the “user” has created an account with another project – we recommend that the “user” create a new online account with a new email address (i.e. create a production email).

PHASE I must be completed via the online portal (during prep): submission of federal W-9 form, FCAP company Application (via portal, estimated list of trainee positions) and signed and dated FCAP agreement (NMFO will generate and send for signature by the UPM or higher).

PHASE II must be completed via the online portal (must be completed within the first week of principal photography): submission of FCAP trainee applications and resumes to the portal, preliminary crew list and day 1 call sheet uploaded to the portal).

PHASE III (completed after wrap): submission of final crew list, last day call sheet and detailed earnings reports of approved FCAP trainees to Rochelle Bussey.

For FCAP / OSS questions please contact: Rochelle Bussey, Sr. Manager of Operations and Workforce Development Programs – phone #: (505) 476-5604 – E-Mail:  rochelle@nmfilm.com Website: www.nmfilm.com

Nonresident Below the Line Crew (NRCE) per Section 7-2F-15 NMSA 1978

➢ 15% credit allowed for the payment of wages for below-the-line (BTL) crew who are not New Mexico Residents.

➢ The services must be rendered in New Mexico.

➢ As determined by the division up to 20% of the total NM BTL crew budget may be allowed by meeting the requirements in Section 7-2F-15 NMSA 1978.

 

Example Credit Amount with a $1,000,000.00 Total NM BTL Crew Budget:

NRCE SPREADSHEET

Give Back Menu of Options coming soon!!!  Please contact Rochelle Bussey with NRCE questions.

For all TRD related forms, CPA info, Film Incentive Program qualifying expenditures, TRD FYIs (new film law explanation, otherwise known as FYI-370),

please go to the LINK below:

http://www.tax.newmexico.gov/Tax-Professionals/film-production-tax-credit.aspx

Starting the Tax Credit Submission Process:

Once principal photography or post-production or stand alone post has ended, please provide the following required information and forms to NMFO:

  • Post-accounting contact information (name, email and phone), final vendor list and final crew list.
  • Completed NMFO stats form. Specifics of this form will be discussed in the pre-production meeting.
  • Confirmation email stating that the production does not have any outstanding financial obligations. This confirmation is needed in order to submit the production’s film tax credit application to NM Tax. & Rev. Department (TRD).
  • Updated registration form (if changed from initial submission).
  • NRCE worksheet (as discussed in pre-production meeting)

 

  • REMINDER: the tax credit application must be submitted before the date on the approval letter from NMFO (Phase II). *DO NOT SEND DOR FORMS, LEDGERS, BIBLES TO NMFO; TRD WILL REQUEST THESE DURING THEIR AUDIT.

 

FOR ESTIMATED TIMELINE OF YOUR CREDIT, PLEASE DISCUSS YOUR INDIVIDUAL PROJECT WITH RPD.  GO TO LINK ABOVE:

FILM STATS FORM

FILM TAX CREDIT APPLICATION