NM FILM PRODUCTION REFUNDABLE TAX CREDIT IN TEN STEPS - PLUS CHECKLIST
Please begin this process when (1) a shooting/production schedule
has been determined; and, (2) when funding and cast are in place.
Step One: Read All Program Information
This document was created by the New Mexico Film Office (NMFO) to assist productions with the tax credit
process. Please take the time to read this entire document and the documents available online at nmfilm.com,
including the “Tax Credit FAQS.” All steps must be followed to meet the incentive requirements.
Step Two: Print This Document
Print the checklist within this document and please post it on the primary contact’s production wall. Please also
have this checklist readily available for the pre-production meeting (step six).
Step Three: Registration & Agreement Forms
Complete the following two (2) forms available under Incentives/Forms at nmfilm.com:
1) Film Production Company Registration
2) Film Production Tax Credit Agreement (Stand-Alone Post has a separate agreement)
Send completed forms to Sherry England, Production Administrator
Email: [email protected] (email preferred)
Fax: 505-476-5601
Mail: Attn: Sherry England
New Mexico State Film Office, EDD
1100 St. Francis Dr., Suite 1213
First Floor Joseph Montoya Building
Santa Fe, NM 87505
For incentive questions, contact Tobi Ives, Sr. Manager of Production, 505.476.5612.
For productions, physical or digital, submit these forms before Principal Photography begins.
Commercials must also provide proof of media buy(s) with these forms.
For “stand-alone” post productions, submit these forms before services begin in New Mexico.
After we approve the Registration Form, an email will be sent to the authorizing representative to confirm its receipt.
Step Four: Submit Synopsis
Email project synopsis to the Film Office. Any non-scripted projects (reality television, documentaries, etc.) or
other project types must also submit a summary or medium-appropriate outline of the project. Indicate if the project
involves any potentially hazardous conditions to minors or animals and whether it complies with state laws (see
“Tax Agreement” referenced in step three). Email this document to [email protected]. Hard copies may also be
submitted to the film division (see address in step three).
Please indicate for informational purposes: (1) if you have submitted or will be submitting a script (which must be in
standard industry format of PDF or Final Draft) to the Film Office for location assistance; and, (2) the anticipated
rating per the MPAA/Television rating system or equivalent if not applicable.
For questions about this requirement, contact Tobi E. Ives, Sr. Manager of Production at 505.476.5612.
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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Step Five: Pre-Production Meeting at Local Offices
Email Tobi E. Ives at the Film Office to schedule a pre-production meeting: [email protected], or call
505.476.5612. We will coordinate with the New Mexico Tax & Revenue Department (TRD) in order for the TRD Film
Unit Supervisor to participate in this meeting at your local production office. The incentive program, including
specific questions for this project, will be discussed in detail at this meeting. This meeting should at least include
the Line Producer and/or UPM and/or Production Supervisor, Head Accountant and Payroll Accountant.
The previous steps must be completed prior to this meeting. For remote locations or if schedules conflict,
conference calls may substitute for this “in-person” meeting.
Please provide a preliminary crew list and vendor list to the Film Office at this time. If it is not yet available, please
email to [email protected] as soon as they are distributed. Also add [email protected] to the call sheet
distribution list.
Tip: TRD provides a service that assists productions with crew residency. Productions often take advantage of
this during prep. Email each of the signed Declaration of Residency forms (DORs) to [email protected] for
TRD to relay whether each crew member has filed their state income tax return as a full-time, in-state
resident, in the past. No other information is provided. (This service does not apply to First Year Residents.)
Step Six: Press Release & Publicist Information
For features and television projects*, a press release must be provided to the Film Office at least one week prior to
the commencement of principal photography. The primary contact will receive press release (PR) questions from
the Film Office. Please respond to these questions and/or submit a draft press release to [email protected].
If there is not a response to the PR questions or a draft is not submitted, the Film Office will distribute a press
release announcing the project is filming in New Mexico unless otherwise agreed upon in writing with the production
company. Information may also be provided about our Give Something Back tweet program promoting education
(contact Lindsey Valdez, [email protected]). For any questions regarding incentive process, please contact
Sherry England at 505.476.5605.
(*Other applicable projects may be asked to also submit a PR.)
COMPLETE YOUR PRODUCTION!
Enjoy our state, be safe, and please contact us if you need any assistance along the way.
Step Seven: Crew & Vendor Obligations
Billing Contacts, Crew List & Vendor List
Email [email protected] with accounting contacts and address(es) for billing inquiries to be posted online.
Include, per statute, the name of the production, the address of the production company and contact information
that includes a working phone number, fax number and email address for both the local production office and the
permanent (post accounting) production office. This is required to notify the public in case there is the need to file a
creditor claim against the production company. This information will remain posted on the web site until all financial
obligations incurred in the state by the film production company have been paid.
Include the final crew list and final vendor list in this email.
Payment Verification
In addition to providing the billing contacts, email [email protected] with verification after all checks have been
“cut” and all bills have been paid. This means that payments of all financial obligations incurred in the State of New
Mexico have been made and that you do not have any outstanding financial obligations. Per law, the Film Office
will provide a letter to NM TRD confirming that this requirement has been fulfilled. The Film Office cannot by law
submit your Tax Credit Application Package to NM TRD until verification has occurred.
If the Film Office contacted the production regarding outstanding payments to crew and vendors prior to the Film
Tax Credit Application Package submission, please include in the email to Sherry England, [email protected], a
list of those vendors and the date they were paid.
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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Step Eight: Additional NMFO Wrap Requirements
NMFO Statistics
Complete the “Stats” form and email to [email protected]. This form can be found at www.nmfilm.com: click
“Incentives” in the bottom menu and then in the pop-up menu, click “Forms.” This form can also be found under the
sub-menu in this section, “Receiving the Credit.” This is a requirement for all sizes and types of projects.
Tips:
Line 30: this is the approximate spend in areas where purchases were made, both qualifying and non-qualifying. Look
for spend particularly in rural areas (based on billing addresses) and only include large purchases when reviewing the
petty cash covers. Do not include payroll. This does include rentals, expendables, food, location fees and fuel.
Line 31: this line includes qualifying rentals, expendables, food and location fees. Not fuel or payroll. To avoid entering
Gross Receipts Tax (GRT) from every receipt, productions typically code for four of the major cities and counties where
the majority of expenditures were made and have an “other” field that is manually tracked. Refer to the NM GRT rates
table on the NM Tax & Revenue website to back out the applicable GRT. (The final total should be rounded to the
nearest thousandth.)
NM Locations
In a separate email to [email protected], provide a final list of all New Mexico filming locations used during
production.
Name and contact of CPA Firm
This applies only for credits over $5m. The firm must be registered and licensed to practice in New Mexico. Please
send contact to [email protected] copied to [email protected].
NM Vendor Forms
If applicable, submit NM Vendor Forms, when production utilizes General Production Service vendors, to
[email protected].
Follow Up Meeting
Email [email protected] to arrange either an in-person meeting or conference call with the NMFO. This should
include at least the Producer, Line Producer and/or UPM along with the Head Accountant and/or POC. This
meeting/call is to discuss the production experience, any additional information needed by the Film Office and the
credit timeline. It must occur prior to the local production offices closing.
Screen Credits
Projects with an end crawl must include an acknowledgement of the State of New Mexico. Examples include
“Filmed on Location in New Mexico,” or “Thank You to the State of New Mexico.” For long-form narrative (features)
a NM state logo, provided by the NMFO, must ALSO be included. A logo will be requested to be included for TV.
Step Nine: Tax Credit Application Package
Complete the following form: Application for Film Production Tax Credit (RPD-41229).
This form is available on nmfilm.com, under Incentives/Refundable Tax Credit/Receiving the Credit or here:
http://www.tax.newmexico.gov/tax-professionals/pages/filmproductiontaxcredit.aspx.
This form is submitted after the last qualifying expenditure for the project has been made (or within your taxable
year if your project crosses years). The address on this form should be your corporate, home or primary office – not
your New Mexico production office, because your credit check will be sent to the address you list if you do not
choose direct deposit.
Physically mail your TAX CREDIT APPLICATION PACKAGE which must include:
1. Application for Film Production Tax Credit form (RPD-41229): hard copy, original signature
2. Excel workbook with separated ledgers (worksheets): Crew Payroll, Performing Artists Payroll
(separated by residents, nonresidents and for Super Loan Outs), Accounts Payable, Petty Cash and Journal
Entries and Post Production Expenditures if applicable (submit on a CD or thumb drive – DO NOT EMAIL)
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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Step Nine (Continued)
3. Declaration of Residency Forms (DORs): organized either on thumb drive or in a binder, alphabetized
4. Summary of Payroll Report: electronic version to download preferred by TRD; on CD or thumb drive
5. Copies of petty cash envelopes: sorted by envelope number or by payee; include on CD or thumb drive
6.
Backup Documents:
● backup for fuel cards (invoices with location addresses)
● backup for P-cards/credit cards
● backup for shipping
● Chart of Accounts
7. Final Crew list, Talent List and Final AP Vendor list
8. Television Series Verification*: if the project is a qualifying television series, include a copy of the episode
title list and schedule, a budget summary for each episode and proof of the distribution order. Either email
these documents to [email protected] for review or mail them to the Film Office at the address below.
They must also be included in a folder on the CD or removable thumb drive being submitted to TRD.
9. Qualifying Production Facility Verification*: if the project uses a qualifying production facility for at least
10 or 15 days of principal photography, include the budget top sheet, shooting schedule and a map of the
areas used at the facility marked with the corresponding shoot dates. Also include the call sheets (or
production reports) for those dates. Stills are recommended but not required. Either email these documents
to [email protected] for review or mail them to the Film Office at the address below. They must also be
included in a folder on the CD or removable thumb drive being submitted to TRD.
Send your completed Tax Credit Package to:
Sherry England
Production Administrator
New Mexico Film Office, EDD
1100 St. Francis Drive. #1213
Joseph Montoya Building, 1st Floor
Santa Fe, NM 87505
505.476.5605
Email submissions will not be accepted.
-
If your credit is anticipated to be over $5m, your CPA firm should have already contacted TRD.
If you scheduled a TRD site visit to review source documents, contact TRD regarding what required
backup you must include (#6).
And, if you have any questions about how to prepare your package, please contact: Priscilla Castro,
Film Unit Supervisor, at [email protected] or call 505-827-0919.
*Projects that are not considered a television series or are not utilizing a qualifying production facility can skip #8 & #9 above.
Step Ten: Filing for the Credit
After the Film Office determines that all financial obligations in the state have been met, this package will be
forwarded to NM TRD. TRD performs an internal review (a four to six month process). Once the review begins,
provide any additional documentation to TRD immediately upon request by TRD. After this review, TRD will return
the Application for Film Production Tax Credit form with the approved claim amount to the filing entity. Sign this
form and file your state income tax return or informational return (using the applicable form: PIT, CIT, PTE or
FID-1). However, you must wait until after the close of your company’s taxable year to file this credit claim. The film
office requests to be notified when the approved claim amount is received or when it is filed: [email protected].
Tip: If you need help figuring out which income tax return to use, contact Jerry Montoya (contact below).
Tip: Check the “REFUND EXPRESS” box for a direct deposit and a faster refund.
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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Step Ten: Filing for the Credit (Continued)
Step Ten: Filing for the Credit
Attach a copy of the approved Application for Film Production Tax Credit with the return and send it to:
Jerry Montoya
Audit and Compliance Division, Director’s Office
P.O. Box 630
Santa Fe, NM 87504-0630
Tip: The overall process can be about 7 to 12 months including the 6-8 weeks from the time the return is
filed to when the credit is received.
Other Notes & Tips
Remember Step One! – Additional details are available at NMFILM.COM.
Once the Tax Credit Application Package has been submitted to TRD by the Film Office, all questions must be
directed to TRD by the authorized project representative(s). TRD will contact the authorized representative(s)
directly with any questions.
The credit is applied to any tax liability the production company has incurred (franchise fees, if applicable) and the
excess credit refunded back to your production company subject to the deferment payments structured below.
The Film Tax Credit program has a deferred payment system based on the refund amount. This affects when the
production company receives the credit:
- If your tax credit is less than $2M, payment occurs immediately upon authorization by TRD.
- If your tax credit is $2M or more but less than $5M, the first payment occurs immediately upon
authorization by TRD and the second occurs twelve months later.
- If your tax credit is $5M or more, the first payment occurs immediately upon authorization by TRD; the
second payment occurs twelve months later; and, the third payment occurs twenty-four months after the
first payment.
All payments are subject to the cap. If $50M is not totally paid out in a given fiscal year, deferred payments
scheduled in the following fiscal year will be paid in advance until $50M has been expended. If there are still funds
available after these future payments have been made, up to $10M will be “rolled over” to the next fiscal year.
(New Mexico’s fiscal year is July 1 through June 30.)
If you didn’t find answers to your questions in this document or on our website, please contact:
Tobi E. Ives, Sr. Manager of Production, NMFO: [email protected] or 505.476.5612
For questions pertaining to the status of your Tax Credit Application Package, contact:
Priscilla Castro, Film Unit Supervisor, NM Tax & Rev. Dept.: [email protected], 505-827-0919.
For questions regarding the filing of returns, contact:
Jerry Montoya, Audit & Compliance, NM TRD: [email protected] or 505.827.0929
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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NEW MEXICO’S 25% or 30% REFUNDABLE TAX CREDIT CHECKLIST 
Before Production – Steps 1 through 6:
 Thoroughly read the incentive information and documents at nmfilm.com. STEP ONE
 Complete Film Production Company Registration form and submit to the NMFO. STEP THREE
 Complete Film Production Tax Credit Agreement and submit to the NMFO. STEP THREE
 Send synopsis, script or other medium-related outline to NMFO. STEP FOUR
 Collect Declaration of Residency forms from crew along with their proof of residency and submit forms to
TRD to verify: Jerry Montoya: [email protected] or fax 505.827.9801. STEP FIVE TIP
 Schedule Pre-Production Meeting with NMFO & TRD (scheduled via NMFO). STEP FIVE
 Meet with NMFO & TRD (at local production offices). STEP FIVE
 Submit a preliminary crew and vendor list to [email protected] and add this email to the call sheet
distribution list. STEP FIVE
 Submit answers to NMFO Press Release questions to NMFO (Features/Television). STEP SIX
During Production
 One to two weeks prior to the end of Principal Photography, contact TRD to schedule a “Site Visit” during
wrap. This is an optional service based on staff availability. It entails a review of source documentation.
 Contact Priscilla Castro, Film Unit Supervisor: [email protected] or 505.827.0919
 For credits over $5M, CPA firm contacts TRD: [email protected] or 505.827.0919
After Production – Steps 7 through 10
 Email the NMFO when the production has wrapped and provide the post-accounting contact information
which will be posted on nmfilm.com. STEP SEVEN
 Email the NMFO the final crew and vendor lists. STEP SEVEN
 Confirm that all New Mexico financial obligations have been paid. STEP SEVEN
 Email the NMFO the completed “Stats” Form and NM filming locations list. STEP EIGHT
 Email the NMFO the name of the CPA firm (licensed to practice in NM), if applicable, and determine if the
audit has been scheduled by production. STEP EIGHT
 Schedule a follow up with the NMFO call during wrap. STEP EIGHT
 Schedule the Tax Credit Package to be submitted to the NMFO after your final expenditure has been
made/booked either for the project or within the company’s tax year; and, determine deadline for
participation. It is highly recommended to submit the Tax Credit Application within 3 to 4 months of wrap.
 Request a state logo for the end crawl if applicable. STEP EIGHT
 Mail the Application for Film Production Tax Credit and package to NMFO. STEP NINE
 Forward this document/information to the post-accountant or the person who will be filing the return.
 As the internal audit by TRD is a 4-6 month process, determine if the company will meet their tax deadline.
 Notify the NMFO when the approved amount has been received by the filing entity from NM TRD:
[email protected]. STEP TEN
 Upon the close of the filing entity’s taxable year, file the New Mexico Income Tax Return or Information
Return with a copy of the approved Application for Film Production Tax Credit. STEP TEN
New Mexico Film Office │800.545.9871 │ 505.476.5600 │ nmfilm.com │Tax Credit Process │ Ver. May 2014
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