Production Incentives Database
| Incentive Type | Non-Transferable Refundable Tax Credit |
| Spend | 25-30% |
| Above the Line Residents | 25-30% |
| Above the Line Nonresidents | 25-30%Restrictions apply, see Additional Information |
| Below the Line Residents | 25-30% |
| Below the Line Nonresidents | 15-20%Restrictions apply, see Additional Information |
| Bonus 1 | (TV) 5% for series television productions intended for commercial distribution with an order of at least six episodes in a single season with a New Mexico budget of at least $50,000 per episode. (and in certain circumstances this includes payments to nonresident actors) |
| Bonus 2 | (TV) 5% for standalone pilots intended for series television in New Mexico (except nonresident actors whose payments qualify for 25%) |
| Project Criteria | No minimum spend requirement Residency forms needed for resident payroll to qualify |
| Loanout Registration Required | Yes |
| Loanout Withholding | Yes, 4.9% |
| Annual Funding Caps | $50,000,000 |
| Project Caps | None |
| Minimum Spend | None |
| Sunset Date | None |
New Mexico Film Office
1100 S. Saint Francis Drive, Suite 1213, Santa Fe, New Mexico, 87505
Also Applies To:
Contact Film Office for more information
| Animation |  |
| Commercials | |
| Documentaries | |
| Game Shows | |
| Interactive | |
| Industrials | |
| Music Videos | |
| News |  |
| Sports | |
| Reality TV | |
Contact Film Office for more information Audit Requirements
Audit by a New Mexico licensed CPA is required for credits over $5 million.
Getting Started
Productions must submit the Film Production Registration form and the Film Production Tax Credit Agreement form to the New Mexico Film Office two weeks prior to the beginning of principal photography; commercials must submit required forms and include proof of media buy(s); 'Stand-alone' post productions must submit the forms prior to beginning services in New Mexico.
Screen Credit Required
Yes
Company Registration
No
Sales Use Tax Relief
Yes
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Submission deadline for each tax credit application is one year from the last qualifying production expenditure, within the production company’s tax year. Production must wait for their NM tax return. A production can expect to wait 8-10 months after wrap to receive their earned credit
Additional Information
Bonus 3
(Features) 5% when a qualified production facility is used for a minimum number of principal photography days. The required number of days to be eligible is 10 days when the NM budget is less than $30 million, and it is 15 days when the NM budget is $30 million or more. A qualified production facility may be a soundstage or a standing set (per defined specs). Utilizing the standing set is not required; however, shooting on the premises of the qualifying sound stage for the majority of (or all of) the principal days is required.
15% tax credit for limited number of nonresident industry crew wages, fringe benefits and per diem paid via production payroll (excludes payments for production designer, director of photography, line producer, costume designer, still unit photographer and driver whose sole responsibility is driving); a quota system determines the allowable positions per budget ranges.
Cap for Performing Artist: The total qualifying expenditures that apply for services of Performing Artists (excluding resident non-Leads and background) are capped and cannot exceed $5 million dollars of the tax credit.
Payments made to a personal services business (super loan-out) for the services of nonresident performing artist loan-out will qualify if the gross receipts tax (currently 5.125%) is paid by the personal services business on the portion of those payments qualifying for the tax credit and the film production company deducts and remits, or causes to be deducted and remitted, personal income tax at the maximum rate in New Mexico (currently 4.9%).
A credit claim amount of less than $2 million per taxable year shall be paid immediately upon authorization; a credit claim amount of $2 million but less than $5 million will be divided into two equal payments and paid over 2 years with the first payment to be made immediately upon authorization and the second payment to be made 12 months after; a credit claim of $5 million or more per taxable year shall be divided into three equal payments with the first payment to be made immediately upon authorization.
(Features) 5% when a qualified production facility is used for a minimum number of principal photography days. The required number of days to be eligible is 10 days when the NM budget is less than $30 million, and it is 15 days when the NM budget is $30 million or more. A qualified production facility may be a soundstage or a standing set (per defined specs). Utilizing the standing set is not required; however, shooting on the premises of the qualifying sound stage for the majority of (or all of) the principal days is required.
15% tax credit for limited number of nonresident industry crew wages, fringe benefits and per diem paid via production payroll (excludes payments for production designer, director of photography, line producer, costume designer, still unit photographer and driver whose sole responsibility is driving); a quota system determines the allowable positions per budget ranges.
Cap for Performing Artist: The total qualifying expenditures that apply for services of Performing Artists (excluding resident non-Leads and background) are capped and cannot exceed $5 million dollars of the tax credit.
Payments made to a personal services business (super loan-out) for the services of nonresident performing artist loan-out will qualify if the gross receipts tax (currently 5.125%) is paid by the personal services business on the portion of those payments qualifying for the tax credit and the film production company deducts and remits, or causes to be deducted and remitted, personal income tax at the maximum rate in New Mexico (currently 4.9%).
A credit claim amount of less than $2 million per taxable year shall be paid immediately upon authorization; a credit claim amount of $2 million but less than $5 million will be divided into two equal payments and paid over 2 years with the first payment to be made immediately upon authorization and the second payment to be made 12 months after; a credit claim of $5 million or more per taxable year shall be divided into three equal payments with the first payment to be made immediately upon authorization.
Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at incentives@mediaservices.com.
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at incentives@mediaservices.com.