New film production tax credit
For film companies that commence principal photography on or after July 1, 2019, a credit is available in an amount equal to 25% of direct production and direct postproduction expenditures made in New Mexico that are subject to taxation and directly attributable to the production of a film or commercial audiovisual product. An additional 5% credit is allowed for certain direct production expenditures made for qualifying productions. In addition, a 5% credit is also allowed for production expenditures in areas more than 60 miles from Bernalillo or Santa Fe counties.Excluded from the credit are costs for which the film production company has already executed a nontaxable transaction certificate under Section 7-9-86 NMSA 1978.
NOTE: If you are a New Mexico film partner,refer to F04 New Mexico Film Partner New Film production tax credit to claim your credit.
How To Apply For This Credit
To obtain approval for the credit, first apply to the New Mexico Film Office, a division of the EDD. After the film production company receives approval from EDD, the company must apply to the Department to get Department approval of the credit. See Form RPD‑41391, Application for New Film Production Tax Credit. When you are approved, you may claim the credit by filing your personal or corporate income tax return.