New Mexico Film Incentive Program

New-Mexico-state-film-tax-creditsA Production Incentive Trailblazer

The New Mexico Film Incentive program was one of the first state programs to offer a film production tax credit and its competitive incentive program makes New Mexico a popular destination for film production.

25% Refundable Production Credit

The New Mexico Film Production Tax Credit is a 25% refundable production credit for qualified production and post-production expenses incurred in New Mexico and subject to state taxation. An additional 5% credit is available for i) direct production expenditures for a qualifying television series or ii) payments to off-camera New Mexico residents if a production utilizes a qualifying production facility for a minimum of 10 or 15 days of principal photography.

Qualifying production expenditures include purchases and rentals from New Mexico vendors, resident labor, and payments to nonresident performing artists directly hired or paid via a loan out company that withholds New Mexico state tax. There is no project cap, however, a maximum $5 million credit is allowed for direct production expenditures for the services of performing artists. An additional 15% credit is available for a limited number of nonresident crew members. New Mexico allows up to $50 million to be expended each fiscal year (July 1 – June 30) on authorized credit claims. If the cap has been reached in a given year, payments on authorized credit claims will be paid out in subsequent years.