Post Production Overview
Looking for local post production professionals and businesses? Search our online industry directory.**
New to the work flow of post production services? Click here for a comprehensive chart. Chart provided by the New Mexico Post Alliance.
Considering moving your emerging media business to New Mexico? Contact Nick Maniatis, Director of the New Mexico Film Office.
Post Production Services and the 25% Refundable Tax Credit
There are two ways post production services will qualify for the 25% Refundable Film Production Tax Credit : either a project is shot in another state or country, but the company uses a New Mexico Post Production facility or vendor for any of the post services, or a production that shoots in New Mexico also does the post here. The services must be rendered in New Mexico and subject to state taxation in either case. In essence, these services will qualify whether the company only does post in New Mexico (Stand-Alone Post Production) or does post work in NM after the production shoots in NM.
"Postproduction expenditure" means an expenditure for editing, Foley recording, automatic dialogue replacement, sound editing, special effects, including computer-generated imagery or other effects, scoring and music editing, beginning and end credits, negative cutting, soundtrack production, dubbing, subtitling or addition of sound or visual effects; but not including an expenditure for advertising, marketing, distribution or expense payments.
This definition of Post Production means that expenditures such as travel, hotel, per diem, etc., would NOT be allowed when incurred under Post Production. These expenditures are allowed for the credit for “direct production expenditures” and not for post production services.
Post production expenditures that qualify for the incentive must be directly attributable to the production of a commercial film or audiovisual product; must be for services performed in New Mexico; and must be subject to taxation by the state of New Mexico.
They exclude post production expenditures for which another taxpayer claims the film production tax credit; and, they can not exceed the usual and customary cost of the goods or services acquired when purchased by unrelated parties. When the buyer and seller are affiliated persons or the sale or purchase is not an arm's length transaction, the Secretary of Taxation and Revenue may determine the value of the goods or services. Comparables may be requested during the audit for the approved claim amount.
Stand-Alone Post Production Tax Credit
Stand-alone post production will qualify for the 25% Refundable Tax Credit, meaning if you "film" your project in another state or country, but post production services are rendered in New Mexico (eg. through local post production facilities) those expenditures will qualify.
Only the approved film production company/producing entity can claim the credit. If a post production company is hired or subcontracted by a film production company to complete a post production aspect of a film/media production, the film production company will claim the credit, not the post-production company. You must be the “film production company” in order to claim the credit.
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