loading animation Loading...

Incentives

Production Incentives Database

Incentive Type Non-Transferable Refundable Tax Credit
Spend 25-35%
Above the Line Residents 25-35%
Above the Line Nonresidents 25-35%*Restrictions apply, see Additional Information
Below the Line Residents 25-35%
Below the Line Nonresidents 15-20% *Restrictions apply, see Additional Information
Bonus (Rural Bonus) 5% increase for productions that shoot in rural areas, defined as 60 miles outside the counties of Bernalillo (home to Albuquerque) and Santa Fe
Bonus (TV Bonus) 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 - contact Film office )
OR
(TV Bonus) 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, 5.9%
Annual Funding Caps $110,000,000
Project Caps None
Minimum Spend None
Sunset Date None
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
The application must be submitted within one year of the date of the last direct production expenditure in New Mexico or the last post production expenditure in New Mexico for the registered project and that are included in the credit claim. Production must wait for their NM tax return. The tax return deems the amount and year of allocation. A production can expect to wait 8-10 months after wrap to receive their earned credit

for applications submitted prior to July 1st 2019. 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.

New applications received after July 1st 2019 will be issued in one lump sum.
Additional Information
Bonus
(Features Bonus) 5% bump on cost incurred at that facility 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.(except nonresident actors whose payments qualify for 25%)



(*NRCE) Non Resident Crew Exemptions - For Non resident-Below the-line(BTL) crew only- The film office will determine first if a project can qualify 15% or 20% of its total NM BTL budget( full BLT crew's wages, both resident and non resident) towards the 15% tax credit on Non resident BTL crew. This is for off camera BTL only and cannot include any positions related to a ATL including writer, director, background actor or performing office. Also, the NRCE is for those positions that are considered "available" in NM.

(*NRCE)To clarify,For a project's total NM BTL budget, the film office decides on the budget % (15% or 20%) and then that total is applied with the 15% qualifying %.

(*NRCE)As an example; if a project has $1,000,000 in total NM BTL budget, if the film office decided on 15% to apply that will give you $150,000, and then 15% of that is $22,500. The $22,500 will be the amount in credit the production will receive. (with a max payout of 22,500 for 15% of the BTL budget; or 30,000 for 20% of the BTL budget)

(*NRCE)To receive this credit the production must partake in the "Giveback" program. A project must give back in the form of set photos(5) and/or a movie poster along with optional donations valued at certain levels (such as rural screenings, podcast, speaking events, and social media) that are equal to 2.5% of the nonresident below-the-line crew direct production expenditures ( payment of wages, fringe benefits and per diem). Contact the film office for further details.

Film Crew Advancement Program (FCAP) are available for upwards of 50% of certain qualified wages and positions. Contact Film office for more details


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.

(SLO)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 5.9%).

Employer taxes DO NOT Qualify - FUTA, SUTA and FICA

Film Production Partners of the New Mexico do not effect the Annual cap.

Separate Native American Grant Available. $100K will be available annually and awarded to Native American companies and Film makers for all types of productions in $5k increments




Last updated: 01/04/2021

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 [email protected].