The Refundable Film Production Tax Credit promotes and encourages hiring residents of New Mexico. However, nonresident crew employed by production can qualify at 15% for a limited number of positions based on the project’s NM budget. This is useful when there is a high level of production activity or when specialized industry skill sets are unavailable in-state.
"Industry crew" means a person in a position that is off-camera and who provides technical services during the physical
production of a film. "Industry crew" does not include a writer, director, producer, background artist or performing artist.
WHEN PRINCIPAL OCCURS ON OR AFTER JANUARY 1, 2016
Nonresident Crew Exceptions Program establishes a flat 15% credit on a specified number of employed nonresident crew for wages, benefits and per diem. This 2015 amendment eliminated the need to contract a services company to employ these individuals; it eliminates the Film Office from approving positions.
No exceptions will be made for the following positions that are filled by nonresidents that are employed, contracted directly or subcontracted by the Production: Director, Writer, Producer, Associate Producer, Co-Producer, Executive Producer, Line Producer, Director of Photography, Motion Picture Driver (whose sole responsibility is driving), Production Designer, Costume Designer, and Still Photographer.
NM BUDGET* RANGES: POSITIONS:
-Up to $2M (i.e. $1.99M) 4 positions
-$2M up to $10M (1 per 1 million) add 8 max.
-$10M up to $50M (1 per 5 million) add 8 max.
-$50M up to $150M (1 per 10 million) add 10 max.
A Standalone Pilot intended for series in New Mexico is authorized for 8 additional nonresident crew positions beyond the established quota base. In addition, at the Film Office’s discretion.
Up to 10 positions may be permitted beyond the quota base when five or more productions are being produced in NM (prep, principal or strike) at the same time as the said production. (No more than 40 positions would be allowed for any given project).
*NM Budget refers to the budget for services in NM regardless if they qualify for the incentive.
A training requirement has applied and will continue to apply to this program (scroll down) which can include the training of crew, promotion of NM and the industry, or a donation to a school with a film program. The amount for a donation to a NM film school is equal to 2.5% of the qualifying payments made to the individuals that fulfilled the approved positions (e.g. $250 for every $10k). The NM film program must meet the given criteria but is the production’s choice. (See examples of all training at the bottom of this webpage.)
Process Tip: Submit the list of positions that the production plans to apply for, before principal photography begins, to Lisa Lucas, Senior Manager of Production, along with confirmation of the project's NM budget. Request a confirmation and a call/meeting to discuss training options. After production, be sure to submit this completed template to email@example.com, Production and Incentive Controller.
For information about on-camera positions, visit Performing Artists link.
For Productions who have already shot their project but have yet to submit the Film Tax Credit Application, here is the NRCE program information pre-2016:
WHEN PRINCIPAL BEGAN PRIOR TO 2016
In 2013, a program was established that requires a high level of administration and organization by the production team. It's a four-part process: (1) positions for nonresidents, originally intended for local crew, are requested by Production in a timely manner and justifications are included; (2) the Film Office reviews and may approve requested positions; (3) the Production must establish an applicable payment structure for approved positions; and (4) the Production must complete the crew training requirement dependent upon what positions were approved. Positions requested must have been originally intended for New Mexico residents and reasonable efforts must have been made by Production to hire local crew. Ultimately, the incentive may be decreased by approximately 8 percent when employing nonresident crew due to the vendors' fees, Gross Receipts Taxes and training costs.
Tip: Qualifying vendors must meet the physical presence requirements, provide crew services as part of their ordinary course of business, and will likely be requested by the Production to meet the same liability and related contractual obligations as the Production Company requesting the service.
No exceptions will be made for the following positions that are filled by nonresidents that are employed, contracted directly or subcontracted by the Production: Director, Writer, Producer, Associate Producer, Co-Producer, Executive Producer, Production Supervisor, Director of Photography, Motion Picture Driver (whose sole responsibility is driving), Designers, Still Photographer, PAs, Personal Assistants,Carpenters (Propmakers) or Utility Techs.
Approval Process and Vendor Considerations
Tip: Tax applications are due one year from the last qualifying expenditure in each tax year - regardless if the production crosses tax years.