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Las Cruces Center Project

New Mexico Film Incentive Program

The Las Cruces Film Office works closely with the New Mexico Film Office, under the statewide liaison network to ensure your stay in New Mexico is trouble-free. The following information is included to answer often-asked questions about the New Mexico Location Experience. It is highly recommended that you contact the Las Cruces Film Office or the New Mexico Film Office with specific questions you may have regarding production or location requirements.

Film Investment Program

New Mexico offers a 0% loan, for up to $15 million per project, (which can represent 100% of the budget) for qualifying feature films or television projects. Terms are negotiated.

For the State Investment Council Policies and Procedures, please visit:
www.state.nm.us/nmsic/PDF%20files/NMFilmPolicy.pdf

Key Requirements
Script must meet rating requirement*

The film must be wholly or substantially shot in New Mexico (at least 85% of principle  photography)

A guarantor for the principal amount of the loan must be in place (See Step Four for a list of acceptable guarantors)

A signed distribution contract must be in place (See Step Six, Number 12, for more details on distribution)

60% of Below-the-Line (BTL) payroll must be allocated to New Mexico residents

Tax Incentives

New Mexico Offers two tax incentives: Up to 20% in Film Production Tax Rebates or Nontaxable Transaction Certificates – NTTCs (Used primarily for commercials) You may choose one program per expenditure.

Up to 20% in Film Production Tax Rebates

New Mexico offers a 15% tax rebate program and an additional 5% tax rebate program (totaling a 20% tax rebate) on production expenditures that are subject to taxation by the State of New Mexico. This is a refund, with no brokering required and no cap – the more you spend, the more you get back. 

Requirements for 15% tax rebate:
Script cannot exceed an “R” rating

Film shall contain an acknowledgment that the production was filmed in the State of New Mexico

Production shall agree to pay all obligations the film production company has incurred in New Mexico

Production shall agree to publish, at completion of principal photography, a notice at least once a week for three consecutive weeks in local newspapers in regions where filming has taken place to notify the public of the need to file creditor claims against the film production company by a specified date

Production shall agree that outstanding obligations are not waived should a creditor fail to file by the specified date

Production shall agree to delay filing of a claim for the Production Tax Credit until the New Mexico Film Division delivers written notification to the Taxation and Revenue Department that the film production company has fulfilled all requirements for the credit

Requirement for additional 5% tax rebate (totaling a 20% tax rebate):
60% of your Below-the-line payroll must be allocated to New Mexico residents

Nontaxable Transaction Certificates (NTTCs) (Used primarily for commercials)

NOTE: If you choose to use the Nontaxable Transaction Certificates (NTTCs) on a given expenditure, you may not count the same expenditure toward the Tax Rebate Programs.

The State of New Mexico charges a gross receipts tax, or sales tax, at the point of sale. As an incentive, the state will issue your company Nontaxable Transaction Certificates (NTTCs), which work much like grocery-store coupons. A certificate is presented at the point of sale, and no gross receipts tax is charged.

This program is used primarily by producers of local, regional, and national advertisements.

Film Crew Advancement Program (FCAP)
Offers productions a 50% wage reimbursement for providing on-the-job training to qualified crew members

In an effort to increase the number of qualified crew members for the burgeoning New Mexico Film and Media industry, the New Mexico Film Office, in collaboration with the International Alliance of Theatrical and Stage Employees (IATSE) Local 480, has created the Film Crew Advancement Program (FCAP). FCAP provides on-the-job-training opportunities for new and existing film and media technicians, while offering an economic incentive for production companies. Projects hiring approved trainees qualify for a 50% wage reimbursement from the State of New Mexico for each trainee hired. All trainees must be New Mexico residents.

For additional information and forms, visit
www.nmfilm.com
or call: (505) 827-9810

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