Base credit is 25% on qualified nonpayroll spend, resident labor, nonresident performing artists (paid thru a Super Loanout) and 15% on wages paid to a limited number of nonresident BTL crew positions based on budget amount.
Up-to an additional 15% in uplifts are available based on project type or use of a New Mexico qualified production facility.
Qualified expenditures are direct production expenses that are made in New Mexico and subject to taxation by New Mexico. Residents must complete a declaration of residency form.
Eligible projects: animation, commercials, documentaries, feature films, game shows, pilots, standalone postproduction, reality TV, scripted TV, talk shows, video games
Incentive details
Type
Refundable tax credit
Rate
25% (base) on qualified nonpayroll spend, resident labor, nonresident performing artists; 15% on wages paid to nonresident BTL crew (limit on number of positions based on budget)
Uplift(s)
5% standalone pilot intended for series TV in NM; 5% series TV with minimum of 6 episodes ordered in a single season; 5% for use of Qualified Production Facility (QPF); 10% for use of locations within NM that are at least 60 miles from Albuquerque & Santa Fe City Halls.
Annual Cap
$130M (2025); increases $10M/year thru FY2028 and caps at $160M
Project Cap
None
Compensation Cap
$5M credit cap for non-resident principal performing artists
Eligible Expenses
Direct production and postproduction expenditures made in-state that are subject to taxation by New Mexico
Additional Info
Requirements
Minimum Spend
None
Local Hire
Requirement
Residents must complete a declaration of residency form & provide driver's license and ID
Logo/End Credit Acknowledgement Required
Yes
Loanout Withholding
5.9% (non-resident performing artist loanouts must be processed through "Super Loanout" (SLO) & gross receipts tax must be paid on behalf of the Loanout).
Application Timing
Pre-approval required (see below); within 60 days of the last eligible expense, production must submit a completion of project notice and stats form. Within one year of last eligible expense, production must submit: final tax credit application, final ledger (excel), 5 production stills, & end credit screenshot. Once the New Mexico Film Office confirms all obligations have been met by the production, the final application & approval memo are submitted to the New Mexico Tax & Revenue Department (TRD). Upon receipt of application & approval memo, TRD has 120 days to review and issue credit approval/denial.
Audit
NM CPA audit required for projects requesting a credit of $5M or more.
Productions must submit a completed application and supporting materials at least 30 days before principal photography/standalone postproduction begins. Productions must complete and submit final tax credit application within one year of the last eligible NM expenditure.
