New Mexico

Register the production company with Taxation and Revenue Department; submit the project registration form and all required documentation at least 30 days PRIOR to the start of principal photography (PP) in New Mexico (NM); pay all NM obligations; and submit the final application within one year of making the last qualifying expenditure in NM. A declaration of residency form is required to be completed by all residents except extras.

Qualified spend includes “direct production expenditures” that are subject to taxation in NM along with all wages paid to NM residents, nonresident performing artists, and a limited amount/number of nonresident below-the-line (BTL). The amount of nonresident BTL wages that may qualify is capped at 15% of the total budgeted amount of NM BTL crew wages (for film partners the NRCE credit is still 15%, but nonresident wages claimed cannot exceed resident wages claimed). The size of the budget determines the number of nonresident BTL that may be included in the calculation. Payments made to ANY nonresident performing artist are subject to 5.9% withholding. Nonresident performing artists hired via their loan out company must go thru a “super loan out” company (ask about using Cast & Crew’s SLO). Other than nonresident performing artists, no other nonresident above-the-line qualify (for NM Film Partners, the additional $10 million cap per production referenced above will apply to the services of nonresident performing artists, directors, producers, screenwriters, and editors).

This program is administered on a first-come, first-served basis. The base incentive is a refundable tax credit equal to 25% of qualified nonpayroll spend, resident labor, payments to nonresident performing artists, and 15% of the wages paid to a limited number of nonresident BTL crew. In addition to the 25%, an additional 10% may be earned on “direct production expenditures” and postproduction expenditures, including payments to nonresident performing artists but not on wages of qualified nonresident BTL crew (15%), provided the work, services, or items are provided on location in NM at least sixty miles from the Albuquerque and Santa Fe City Halls. Additional uplifts include: 1) 5% for a standalone TV pilot intended for series television in NM if “picked up” or for a TV series with an order for at least six episodes in a single season with a NM budget of $50,000 or more per episode; and, 2) 5% if certain criteria are met for using a QPF. Annual funding increases by $10 million per fiscal year through 2028. Refunds are made on a first-come, first-served basis. Prior to July 1, 2028, a NMFP may qualify nonresident BTL wages equal to 100% of the amount of resident BTL wages, provided the production company gives a seventy-two-hour notice of the opportunity to be hired as resident BTL crew. The maximum rate that may be applied to any expenditure is 40%.