NEW MEXICO
TAX INCENTIVES
Procedures & Forms
ALBUQUERQUE photo: nmfilm.com
NEW MEXICO TAX INCENTIVES:
15% Film Production Tax Rebate
OR
Nontaxable Transaction Certificates – NTTCs
(Used primarily for commercials)
You may use only one incentive per expenditure.
RANDALL DAVEY ESTATE,
15% FILM PRODUCTION TAX REBATE: SANTA FE
photo: nmfilm.com
Benefit:
New Mexico offers a 15% tax rebate on production expenditures that are sub-
ject 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.
Who Qualifies:
Feature films, television, national commercials, and documentaries. A “film”
is defined as a single medium or multi-media program, including national ad-
vertising messages, fixed on film, videotape, computer disc, laser disc, or
other delivery medium, that can be viewed or reproduced and that is exhib-
ited in theaters or by individual television stations, groups of stations, net-
works, cable television stations or other means or licensed for home viewing.
Content cannot exceed an “R” rating.
Applicable Expenses:
· cost of a story and scenario to be used for a film
· wages or salaries of talent, management, and labor of New Mexico residents
· cost of set construction and operations, wardrobe, accessories, and
related services
· costs of photography, sound synchronization, lighting, and related services
· costs of editing and related services
· rental of facilities and equipment (including location fees)
· leasing of vehicles, food, and lodging
· airfare purchased through a New Mexico-based travel agency or company
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BLACK MESA, SAN ILDEFONSO PUEBLO photo:nmfilm.com
· insurance and bonding purchased through a New Mexico-based insur-
ance agent
· other direct costs
The Process:
ACADEMY HIGH SCHOOL, 1. Submit script to Film Office Director for determination of rating.
ALBUQUERQUE
photo: nmfilm.com Preferred method for sending script:
Final Draft via email to: lisas@nmfilm.com
or
hard copy to: Director, New Mexico Film Office, 1100 S. St. Francis Dr.,
Ste. 1200, Santa Fe, NM, 87505-4147
Once we have read your script and determined that it will make the rat-
ing, the Film Office will call you.
2. Complete the Film Production Company Registration Form and Applica-
tion for Business Tax ID Number. (Included in this packet, or you may
download forms at www.nmfilm.com/resources/incent.html) Mail or fax
forms to: John Armijo, New Mexico Film Office, 1100 S. St. Francis Drive,
Suite 1200, Santa Fe NM 87505, Fax: 505-827-9799.
3. After your forms have been processed, the Film Office will call or email
you your CRS number.
4. Distribute the Rebate Guidelines handout (included) to your depart-
ment heads. This will help maximize your rebate and minimize expen-
ditures that do not qualify.
5. As you begin the hiring process, each New Mexico resident employed on
your production must complete a Declaration of Residency form (Includ-
ed or available at www.state.nm.us/tax/forms/year03/form03.htm). You
must also make a copy of each employee’s drivers license. Copies of
the Declaration of Residency and drivers’ licenses must be turned in with
your rebate package. Also, save your company’s Federal I-9 forms.
6. From the beginning of pre-production, keep a ledger (in print or on CD) of
New Mexico vendors and expenditures with copies of receipts.
7. Make a copy of the front of each completed petty cash envelope, with the
NAME of each vendor. Note: some gas stations are Native American-owned
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BONANZA CREEK RANCH photo: nmfilm.com
and are exempt from paying state taxes; therefore, they do not qualify for
the rebate. Simply writing in “fuel” will not be sufficient.
8. Once production is completed, use your records from Step 6 to com-
pile a comprehensive list of New Mexico expenditures and calculate
your 15% rebate.
9. Complete the Application for Film Production Tax Credit form (in-
cluded). Mail this package to: Jerry Montoya, Audit & Compliance Divi-
sion/Film Credit Auditor, New Mexico Taxation and Revenue Department,
P.O. Box 630, Santa Fe, NM 87504-0630. The Department will review your
claim and return the form to you with the approved amount.
10. Complete the Film Production Tax Credit Claim form (included) and file
an income tax return (Using Forms PIT, CIT, PTE or FID-1). Attach the
form with the approved credit amount and send to the New Mexico Taxa-
INDIAN DANCER
tion and Revenue Department (address listed in Step 9). The credit will photo: nmfilm.com
then be applied to any tax liability you have incurred, with any excess
credit refunded back to your production company.
15% Film Production Tax Rebate Guidelines
A copy of this page is included w/ this packet. Photocopy and distribute it
to your department heads.
Note: The 15% tax rebate applies only to expenditures that are subject to
taxation in New Mexico.
· “Performing Artists” who arrange to be paid through a New Mexico loan-
out company will qualify for the rebate.
· Employee fringe benefits paid to a payroll company qualify for the tax re-
bate, except State unemployment tax, workers compensation tax, FICA,
and Federal unemployment taxes.
· Per diem to out-of-state employees does qualify.
· Purchases made using petty cash must be documented by vendor receipts.
· A Declaration of Residency* form and an I-9 form is required for the pay-
roll of every New Mexico resident you include for the tax rebate. *You
must get proof of residency (valid New Mexico driver’s license, current
New Mexico voter registration card, or copy of last year’s New Mexico
3 nmfilm.com
SANTA FE NATIONAL FOREST photo: nmfilm.com
personal income tax return) from the employees you hire. Please
make certain that the employee completely fills out his/her Declara-
tion of Residency form and include a copy of that form in your led-
ger/summary report.
· Expenditures made to Section 501 (c) non-profit organizations do not
qualify because these organizations are tax exempt. These include Good-
will, Salvation Army, churches, museums, schools, etc.
· Purchases made on the Internet do not qualify.
· Payments made to the State or Federal Government do not qualify. This
would include permits and postage.
· Purchases made on tribal lands do not qualify, as they are tax exempt.
This includes service stations, restaurants, hotels, grocery stores, etc.
· Cell phone reimbursements when the billing address is outside of New
Mexico do not qualify.
· The address on your registration form should be your corporate, home or
primary office – not your production office, as your rebate check will be
sent to the address you list.
· Keep a summary of vendors’ names and receipts.
BLIND HORIZON
photo: Neil Jacobs
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 15%
Tax Rebate.
Benefit:
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 cou-
pons. A certificate is presented at the point of sale, and no gross receipts tax
is charged.
nmfilm.com 4
FILM CREW photo: Eli Reed
Who Qualifies:
This program is used primarily by producers of local, regional, and national
advertisements.
Applicable Expenses:
· the cost of a story and scenario to be used for a film
· salaries of talent, management and labor; including payments to personal
services corporations with respect to the services of qualified performing
artists, as determined under Section 62b(a)(A) of the Internal Revenue
Code of 1986
· cost of the construction and operations, wardrobe, accessories, and relat-
ed services
· costs of sound synchronization, lighting, and related services
· costs of editing and related services
· rental of facilities and equipment (including location fees)
· other direct costs of producing the film, not including lodging, rental of
vehicles, or catering TESUQUE TRUCK
photo: Michael Dellheim
The Process:
1. Complete the following forms:
· Film Production Company Registration form (included)
· Application for Business Tax Identification Number (included)
· Application for Nontaxable Transaction Certificates – NTTCs (included)
2. Mail or fax the completed forms to: New Mexico Film Office, 1100 S. St.
Francis Drive, Suite 1200, Santa Fe, NM 87505-4147 Fax: 505-827-9799
3. New Mexico Taxation and Revenue Department will send you a New Mexico
Business ID Number and CRS -1 Filer’s Kit.
4. You will receive Type 16 NTTC Certificates from the New Mexico Taxation
and Revenue Department. Present them to the vendor at the point of sale
and no tax will be added to your bill.
5 nmfilm.com
Film Production Company
Registration Form
Note: To avoid any delays, please type or print clearly. If the appropriate response is
“not applicable” or “none”, use “N/A” in the space.
PROJECT TITLE: ______________________________________________________
TYPE OF PROJECT (Check one only): Feature Film TV/Cable Program
Documentary Music Video National Commercial
Local/Regional Commercial Short
Other (please describe) ________________________________
Check here if applying for the Gross Receipts (or sales) Tax Deduction..
Registration for the NTTC Program is one-time. Subsequent Type 16 NTTC
certificates can be ordered directly from the Taxation and Revenue Department by
calling 505-827-0950.
Check here if applying for the 15% Film Production Tax Credit. To qualify for the rebate please
submit a script to the Film Office so that we may verify that the content does not violate existing state
statutes.
PRODUCTION COMPANY INFORMATION:
BUSINESS NAME: ______________________________________________________
Permanent Business Address (not a P.O. Box)
____________________________________________________________________
City, State, Country: ___________________________________ Zip:___________
Principal Contact________________________________ Title__________________
Phone__________________Fax: __________________ Email__________________
Mailing Address (if different from above):
___________________________________________________________________
City, State, Country: ________________________________ Zip: _____________
Phone_____________________Fax________________ Email_________________
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Principal Street Address (Courier address) in New Mexico (if different from above):
___________________________________________________________________
City, State, Country: ______________________________Zip: _________________
Principal Contact________________________________ Title__________________
Phone_____________________Fax: ___________________ Email______________
TYPE OF ENTITY: C Corporation S Corporation LLC
Partnership Estate or Trust
Other (Please Describe): ____________________________
Federal Tax I.D. (FEIN - 9 characters)_____________________________________
New Mexico Tax I.D. (CRS Tax Number - 11 characters)______________________
State in which incorporated or registered: __________________________________
PRODUCTION INFORMATION:
First day NM Production expenses begin:____________ Last Day: _____________
Number of Shoot Days in New Mexico: ___________________________________
Estimated expenditure in New Mexico: ____________________________________
PRINCIPAL CONTACT INFORMATION:
Name: ___________________________________ Title: _____________________
Permanent Street Address (Home or forwarding address):
____________________________________________________________________
City, State:____________________________________ Zip: __________________
Phone_____________________Fax___________________ Email_______________
CERTIFICATION:
I hereby affirm that I am authorized to sign on behalf of the applicant film production company
described above, and further affirm that any items for which the applicant is seeking a rebate are
intended for use exclusively as an integral part of the pre-production, production or post-
production filming activities engaged in the State of New Mexico. I further certify that the film
will be exhibited in theaters and will have an onscreen credit for the State of New Mexico.
Authorized Representative’s Name: __________________________________________
Title: ___________________________ Signature: ______________________________
Phone: ___________________ E-mail: _________________ Date: _____________
Fax or mail this signed form to the New Mexico Film Office, 1100 St. Francis Dr.,
Santa Fe, NM 87505-5003. Fax: 505-827-9799. Phone: 800-545-9871 or 505-827-
9810.
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ACD-31015
REV 11/00
STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
APPLICATION FOR BUSINESS TAX IDENTIFICATION NUMBER
PLEASE TYPE OR PRINT IN BLACK INK - Please read instructions on reverse
FOR OFFICE USE ONLY
New Mexico Taxation and Revenue Department Identification Number Date Issued Flag "N" No-Mail
month day year
Project:
( NM TRD ID# ) 0 _ - _ _ _ _ _ _ - 00 _
1. Registration Type (choose one) Regular Seasonal Temporary (max 6 months) If checked, item #11 must be completed NTTC Only
2. Provide your Federal Employer Identification Number (FEIN) if business entity is required to have an FEIN per IRS guidelines:
3. Business Name
5. Business Telephone ( ) ext.
4. DBA Other Telephone ( )
(mobile, pager, message, etc..)
6. Mailing Address City State Zip Code Country
7. Physical Location Address ( not a PO Box ) City State Zip Code Country
8a. Select the type of business entity you are registering - (must check one) For Corporations and Pass Through Entities (PTE) Only
Sole Owner / Proprietorship Federal Agency Indian Tribe / 9a. Are you registering for Corporate Income Tax or PTE purposes only? Yes No
Limited Liability Co. (LLC) State Agency Pueblo 9b. Provide the address and phone number for income tax purposes same as #6 above
Partnership County Estate Address: ____________________________________________ Phone # ______________
Corporation Municipality Trust ____________________________________________
8b. Income tax treatment of entity - (If applicable, check one) 9c. Will the Corporate Income be reported by another Corporate entity?
Exempt 501( c ) _____ PL 86-272 S Corporation Yes No If yes, give the following information
Proprietorship (LLC only) Partnership (LLC only) NM TRD ID# ___________________ FEIN _______________
Limited (Partnership only) Non-Nexus
BUSINESS NAME
10. Date business activity 11. Date you anticipate business 12. If you qualify as a Seasonal 13. Will business pay 14. Method of 15. Select CRS
started or is anticipated to close (only enter if you have business, specify the months wages to employees Accounting filing status
to start in New Mexico. checked "Temporary" above) you are engaging in business. in New Mexico? MONTHLY
month day year month day year Begin Month End Month
CASH
QUARTERLY
Yes No ACCRUAL
SEMIANNUAL
16. Select the type(s) of business you are engaged in. 17. Liquor License Type/No. 20. If applicable, provide former owner's:
Accomodation, Food Administrative & Support Services and NM TRD ID#
Services, & Drinking Places Waste Management & Remediation
Business Name
Agricluture, Forestry, Services 18. Public Regulation
Hunting & Fishing Arts, Entertainment & Recreation Commission No. 21. Are you operating or have you operated any
Professional, Scientific & Real Estate & Rental & Leasing other business(es) in New Mexico? Yes No
Technical Services Health Care & Social Assistance
If Yes, give: NM TRD ID#
Finance & Insurance Transportation & Warehousing 19. Contractors License No.
Information Educational Services Business Name
Manufacturing Wholesale Trade Construction (attach additional pages if needed)
Mining Government Retail Trade 22. Will business sell Gasoline? Yes No
Utilities Other Services 23. Will business sell Special Fuels? Yes No
Briefly describe nature of business: 24. Will business sell Cigarettes? Yes No
25. Will business sell Tobacco Products? Yes No
26. Will business engage in Severing Natural Resources? Yes No
27. Will business engage in processing Natural Resources? Yes No
28. Will business be a Water Producer? Yes No
NOTE: If you answered Yes to any of the above, please complete a Special Tax Registration Form.
29. Will business be involved in Gaming Activities? Yes No
30. List Owners, Partners, Corporate Officers, Association Members, or Shareholders. If listing an entity other than an individual, please see instructions.
( attach additional pages if necessary )
#1 #2
SSN
NAME & TITLE
ADDRESS
PHONE & E-MAIL
I declare that the information reported on this form and any supplemental page(s) is true and correct.
Print Name & Title Signature Date
Application must be complete or processing will be delayed.
Please return both copies to the Taxation and Revenue Department, office locations are on the reverse side.
11 nmfilm.com
RPD-41271 STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
INT. 08/2002
DECLARATION OF RESIDENCY
Purpose of this form. Film production companies claiming a tax credit based on wages or salaries paid
to New Mexico residents for work performed on a film produced in New Mexico must have each such
employee complete this declaration of residency. The film production company must retain this form in
its records.
Name Social Security Number
Permanent Residence - physical address
City, State and Zip Code Telephone Number
Title of Film Project
1. Are you presently a resident of New Mexico? See Residency below.
2. Do you anticipate changing your residency status during the time that
you are expected to work on the film project?
3. What evidence have you provided the film production company to show residence in New Mexico?
You must provide at least one of the following.
A valid New Mexico drivers license.
Enter the drivers license number.
A current New Mexico voter registration.
Enter the registering county.
A copy of last years New Mexico personal income tax return.
Other. Indicate type. If you cannot provide one of the previous three forms of evidence, other evidence may be
acceptable. For example, a minor may present parents proof of residency. Other evidence must be clear and con-
vincing, and show intent to maintain a permanent residence in New Mexico. Proof of ownership of property or estab-
lishing an abode in New Mexico is not acceptable unless supplemented by other information showing intent.
Residency. To be a resident of New Mexico for tax purposes you must be domiciled in New Mexico.
Your domicile is your permanent home; it is the place to which you intend to return after any temporary
absence. You can have only one domicile. A change in domicile is established only by establishing a
physical presence in a new location with an intent to abandon your old domicile and make a home in the
new location permanently or indefinitely.
I declare under penalty of perjury that I have examined this document and to the best of my
knowledge and belief it is true, correct and complete.
Signature Date
13 nmfilm.com
STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
Application for Film Production Tax Credit Instructions
ABOUT THIS CREDIT: Beginning on January 1, 2002, the film production nontaxable transaction certificate (NTTC) Type 16 pursuant to 7-9-86 NMSA
tax credit, Section 7-2F-1 NMSA 1978, provides a tax credit for an eligible 1978. Type 16 NTTCs may be executed by a qualified production company
film production company of 15% of film production expenditures made in New to purchase property, lease property or purchase services that qualify as
Mexico that are subject to taxation by the State of New Mexico and directly production costs.
attributable to the production in New Mexico of a film. The film production tax (b) expenditures which are not subject to tax by New Mexico.
credit shall not be claimed for expenditures for which the film production Wages and salaries for talent, management and labor are eligible for
company has delivered a nontaxable transaction certificate pursuant to the film production tax credit only when paid to individuals who are New
Section 7-9-86 NMSA 1978. Mexico residents during the time that they performed work on the project.
To be eligible for the film production tax credit a film production Residency may be demonstrated by possession of a valid New Mexico
company must first be approved by the New Mexico Film Office of the driver's license, possession of current registration to vote in New Mexico or
Economic Development Department. After approval, the eligible film produc- filing as a resident a New Mexico income tax return for a previous year. Other
tion company may apply for the credit by submitting a completed form RPD- evidence may be acceptable; for example, a minor may present parents'
41229, Application for Film Production Tax Credit, to the Taxation and proof of residency. Form RPD-41271, Declaration of Residency, must be
Revenue Department. The Department may approve the film production tax completed by the employee and retained in the records of the film production
credit and issue a document granting the tax credit. Please allow four to six company.
weeks to process the application.
FORM INSTRUCTIONS:
To claim the approved film production tax credit the approved film Name/address block Complete all information requested in this block. If the
production company may apply all or a portion of the film production tax credit contact for the permanent records is different, enter the contact information
granted against personal income tax liability or corporate income tax liability. below.
If the amount of the film production tax credit exceeds the film production Line A Enter the total direct production expenditures made in New Mexico
company's tax liability for the taxable year in which the credit is being claimed, that are subject to taxation by the State of New Mexico and directly attributable
the excess shall be refunded. To claim approved credits against tax liabilities, to the production in New Mexico of the film project for which this credit is claimed.
complete Form RPD-41228, Film Production Tax Credit Claim Form, and Do not include any direct production expenditures for which the film production
submit the form with the return to which the taxpayer wishes to claim the credit. company has delivered a Type 16 NTTC pursuant to Section 7-9-86 NMSA
1978. Do not include direct production expenditures made outside New
"Film" means a single media or multimedia program that is fixed on film,
Mexico, or direct production expenditures which are not subject to New
videotape, computer disc, laser disc or other similar delivery medium that can
be viewed or reproduced and fulfills at least one of the following conditions: Mexico state tax.
Line B Enter the film production tax credit claimed. Multiply line A by 15%.
l
is exhibited in theaters,*
This is the amount of film production tax credit that you are claiming.
l
is licensed for exhibition by individual television stations, groups of Certifications You must certify that the statements set out under Certifica-
stations, networks, cable-television stations or by other means, or tions are true and correct. You must place a check mark in the box next to
l
is licensed for the home viewing market. each statement.
Film also includes a national advertising message that is exhibited in Sign the application, enter your title and the date of signature. Mail to: Taxation
theaters. and Revenue Department, Administrative Resolution and Services Bureau,
PO Box 630, Santa Fe, NM 87504-0630
* The film for which the credit is being taken must be exhibited in
theaters before the credit can be claimed. Required Supporting Documentation Submit the following documenta-
tion to support your claim:
Direct production expenditures include:
(a) the cost of a story and scenario to be used for a film;
l
A copy of the approval from the New Mexico Film Office.
(b) wages or salaries for talent, management and labor paid to persons who l
A copy of the final cost-accounting summary for the project with a
are residents of New Mexico; breakout of the New Mexico costs for each line item.
(c) the cost of set construction and operations, wardrobe, accessories and l
The name, address, social security number and amount paid for every
related services; resident of New Mexico for whom the company wishes to claim credit
(d) the cost of photography, sound synchronization, lighting and related for wages and salaries.
services; l
If the company has obtained Type 16 NTTCs from the Taxation and
(e) the cost of editing and related services; Revenue Department, a listing of every person to whom the company
(f) rental of facilities and equipment; has delivered an NTTC. The list must contain the name, address and
(g) leasing of vehicles; New Mexico CRS identification number, if applicable, and the dollar
(h) costs of food or lodging; amount of purchases from that person.
(i) airfare if purchased through a New Mexico-based travel agency or travel
company; Enter the contact information for the permanent records.
(j) insurance costs and bonding if purchased through a New Mexico-based Name ___________________________________________________
insurance agent, and
(k) other direct costs of producing the film within film industry practice. Telephone and E-mail Address _______________________________
Direct production expenditures exclude:
Mailing Address ___________________________________________
(a) expenditures for which the film production company has delivered a
15 nmfilm.com
STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT
RPD-41229
INT. 08/2002 APPLICATION FOR FILM PRODUCTION TAX CREDIT
The purpose of this form. This form may be used by an approved film production company to apply for a film production tax credit. To
receive approval, contact the New Mexico Film Office of the Economic Development Department at (505) 827-9810 or (800) 545-9871.
The amount of the credit is equal to fifteen percent of production expenditures made in New Mexico that are subject to taxation by the State
of New Mexico and directly attributable to the production in New Mexico of a film project. Submit this completed application with required
documentation to the Taxation and Revenue Department, one application for each approved film project. The Department will notify you
of the approved amount of credit. This refundable credit can be applied against personal or corporate income tax due the state of New
Mexico. Use form RPD-41228, Film Production Tax Credit Claim Form, to claim the credit.
Mail this form to: Taxation and Revenue Department, Administrative Resolution and Services Bureau, P.O. Box 630, Santa Fe, New Mexico, 87504-0630.
For assistance call (505) 827-1012 for personal income tax returns or (505) 827-0817 for corporate income tax, pass-through entity, or fiduciary income
tax returns.
Name of Eligible Film Production Company Taxpayer Identification Number (SSN or FEIN)
Mailing Address Enter the contact information for the permanent records on City, State and Zip Code
the reverse if different.
Name of Contact Person Telephone Number Fax Number and E-mail Address
A. Total production expenditures made in New Mexico that are subject to
taxation by the State of New Mexico and directly attributable to the production $
in New Mexico of the film project for which this credit is claimed.
$
B. Film production tax credit claimed (Line A x 15%)
C. Enter the Project Title as indicated on the New Mexico Film Office Film Production Company
Registration Form.
Please ensure all required supporting documentation is attached to your application.
Certifications
I certify that the film:
has been exhibited in theaters or has been licensed for exhibition by television or for the home viewing market; and
that the total direct production expenditures included in line A above:
include only expenditures made in New Mexico directly attributable to the approved production;
include only expenditures which are subject to taxation by the State of New Mexico, and
exclude expenditures for which the film production company delivered a nontaxable transaction certificate pursuant
to 7-9-86 NMSA 1978.
For long-form narrative films only, I certify that the film contains an acknowledgment that the production was
filmed in New Mexico.
I declare I have examined this application, including accompanying invoices, schedules and/or statements, and to the best of my
knowledge and belief this application is true, correct and complete.
Authorized Signature Title Date
FOR DEPARTMENT USE ONLY
This application for Film Production Tax Credit was reviewed by the Taxation and Revenue Department and was
Approved in the amount of $
Adjusted and approved in the amount of $
Disapproved
Reason for adjustment/disapproval
Signature of Director or Delegate Date Approval No.
17 nmfilm.com
RPD-41228
INT. 07/2002
State of New Mexico - Taxation and Revenue Department
FILM PRODUCTION TAX CREDIT CLAIM FORM
ABOUT THIS CREDIT:
Beginning on January 1, 2002, the film production tax credit, Section 7-9F-1 NMSA 1978, provides a credit for an eligible film
production company of 15% of film production expenditures made in New Mexico directly attributable to the production in New
Mexico of a film. The expenses must be subject to taxation by the State of New Mexico. The film production tax credit shall not
be claimed for expenditures for which the film production company has delivered a nontaxable transaction certificate according
to Section 7-9-86 NMSA 1978.
To be eligible for the film production tax credit a film production company must first be approved by the New Mexico Film Division
of the Economic Development Department. To apply for eligibility contact the Film Division at (505) 827-9810 or (800) 545-9871.
Once approved by the New Mexico Film Division, the eligible film production company may apply for the credit by submitting a
completed form RPD-41229, Application for Film Production Tax Credit, to the Taxation and Revenue Department. The Department
may approve the film production tax credit and issue a document granting all or part of the tax credit.
HOW TO USE THIS FORM:
An approved film production company may apply all or a portion of film production tax credits approved by the Taxation and Revenue
Department against personal income tax liability or corporate income tax liability. When claiming an approved film production tax
credit, this claim form must accompany the PIT-1, CIT-1, PTE, or FID-1 return to which the taxpayer wishes to apply the credit.
If the amount of the film production tax credit exceeds the film production company's income tax liability for the taxable year in
which the credit is being claimed, the excess shall be refunded.
INSTRUCTIONS FOR COMPLETING THE FILM PRODUCTION TAX CREDIT CLAIM FORM:
Enter the name and taxpayer identification number of the approved film production company and the New Mexico Taxation and
Revenue Department approval number from form RPD-41229, Application for Film Production Tax Credit . Enter the report period
of the New Mexico income tax return for which you wish to claim the credit and check the type of New Mexico income tax form
filed. Enter the amount of film production tax credit available on this form and on the appropriate income tax form.
Attach this claim form to your income tax return and mail to the address on the return.
For additional assistance call (505) 827-1012 for personal income tax returns and (505) 827-0817 for corporate income tax returns,
pass-through entity returns, or fiduciary income tax returns.
Name of Approved Film Production Company
Taxpayer Identification Number (SSN or FEIN)
of Approved Film Production Company
AMOUNT OF FILM PRODUCTION TAX CREDIT
Approval Number $ , , .
REPORT PERIOD* Check One
PIT-1 Form
through CIT-1 Form
Month Day Year Month Day Year PTE Form
FID-1 Form
* Enter same report period as entered on your attached tax form.
______________________________________________________ _________________ _____________________
Signature of Taxpayer or Agent Date Phone Number
Attach to appropriate New Mexico tax form
19 nmfilm.com
ACD – 31050 New Mexico Taxation and Revenue Department
INT – 04/2005
P.O Box 5557
Santa Fe, New Mexico 87502-5557
www.state.nm.us/tax
INSTRUCTIONS FOR NONTAXABLE TRANSACTION CERTIFICATES
REQUIREMENTS: All New Mexico sellers/lessors who wish to execute NTTCs are required to: 1) register with the Taxation and Revenue
Department, 2) complete the Application for Nontaxable Transaction Certificates, and 3) be in compliance with the department. Sellers/lessors are in
compliance with the department when: 1) all required returns have been filed: 2) they are not a delinquent taxpayer, and 3) their CRS business
registration is complete.
CAUTION: Fraudulent statements made to obtain certificates, or fraudulent use of certificates received pursuant to this application with intent to
evade or defeat the tax may subject the person or business to a fine of not more than ten thousand dollars ($10,000) or imprisonment for not more
than five (5) years or both. (Sections 7-1-72 NMSA 1978 and 7-1-73 NMSA 1978) In addition, misuse of these certificates may result in loss of the
privilege to execute NTTCs for up to one (1) year. (Section 7-9-43 NMSA 1978)
NTTC DESCRIPTIONS AND AUTHORIZED USES: See reverse for complete descriptions of NTTC types.
• Type 2: for tangibles for resale, lease or re-lease, or for purchase by manufacturer
• Type 5: for services for resale, for export, or for services performed on manufactured products
• Type 6: for construction contractor’s purchase of construction materials and construction services
• Type 9: for purchase of tangible personal property by New Mexico or United States governments, 501(c)(3) organization, or credit unions
• Type 15: for tangible personal property purchased by qualified federal contractors
• Type 16: for sales of property, services and leases to qualified film production companies, accredited foreign missions, and their
accredited members
• Type OSB NTTCs are issued to registered New Mexico sellers/lessors to execute to Out-of-State Buyers who are not registered with the
department, but who will resell tangible personal property outside of New Mexico
OPTION #1
NTTC-NET: The department has developed NTTC-NET, a paperless system on the web, to expedite the processing of Nontaxable Transaction
Certificates (NTTCs). The department encourages all taxpayers to use NTTC-NET to apply for, execute, record, and request additional NTTCs
online. If you know the seller’s/lessor’s CRS identification number to whom you wish to execute a NTTC, you may immediately execute the NTTC
online. When the recipient’s CRS identification number is known, there is no limit to executing NTTCs on NTTC-NET, but you may request up to
five (5) NTTCs to be executed at a later date if the seller’s/lessor’s name and CRS identification number is not known. You must first record
executed NTTC information before applying for additional NTTCs to be executed at a later date.
For instructions on how to use NTTC-NET, go to www.state.nm.us and click on the NTTC-NET link. The benefits of using NTTC-NET are: 1)
NTTCs are issued immediately; 2) you can print the NTTCs to your local printer; 3) you do not have to contact the department to process your
order; 4) you can request or execute NTTCs twenty-four (24) hours a day, seven (7) days a week, and 5) you do not need to complete the application
below.
OPTION #2
IF YOU DO NOT HAVE ACCESS TO NTTC NET COMPLETE THE APPLICATION FORM BELOW:
HOW TO APPLY OR REORDER: If you do not yet have the name and CRS identification number of the vendor to whom you wish to execute
the NTTC, complete the application below, providing all information requested. Mail the application to the New Mexico Taxation and Revenue
Department, P.O. Box 5557, Santa Fe, New Mexico 87502-5557, or you may deliver it to your local district office.
NOTE: You may reorder additional NTTCs ONLY after your executed NTTCs have been recorded with the department. To record your
executed NTTCs, submit the Nontaxable Transaction Certificate Report or record them online. The department will only issue a maximum of five
(5) NTTCs to be executed at a later date
-----------------------------------------------------------------------------------------------------------------------------------------------
APPLICATION FOR NONTAXABLE TRANSACTION CERTIFICATES
To be executed at a later date
(All information below must be completed)
BUSINESS INFORMATION OF APPLICANT NM CRS IDENTIFICATION NUMBER OF APPLICANT
Name: 0 ___ - ___ ___ ___ ___ ___ ___ - 0 0 - ___
Mailing CONTRACTORS LICENSE
New Application
Address: NUMBER (if applicable)
City: State: Zip: Reorder ___ ___ ___ ___ ___
Type of NTTC Quantity Requested: 5 combined maximum
Date: Phone No: (circle number)
Print Name: 1 2 3 4 5
Authorized
Signature: 1 2 3 4 5
New Mexico Taxation and Revenue Department, PO Box 5557, Santa Fe, New Mexico 87502-5557
NTTC TYPE DESCRIPTIONS
TYPE 2 certificates may be executed: 2) Construction services to be performed on a construction project that is
1) By manufacturers for the purchase of tangible personal property that will either subject to gross receipts tax upon completion or that takes place on
become an ingredient or component of the manufactured product. (7-9-46) Indian tribal territory. (7-9-52) Formerly Type 7. Enter your contractor’s
Formerly Type 1. license number on the application or submit proof that such a number is not
2) For the purchase of tangible personal property or licenses for resale required. (See note below.)
either alone or in combination with other tangible personal property or
licenses in the ordinary course of business. (7-9-47) TYPE 9 certificates may be executed for the purchase of tangible personal
3) By a lessee for the lease of tangible personal property or licenses for property only and may not be used for the purchase of services, for the
subsequent lease in the ordinary course of business, except for the lease of lease of property or to purchase construction materials for use in construc-
furniture or appliances, the receipts from the rental or lease of which are tion projects. The following may execute Type 9 NTTCs:
deductible under Subsection C of Section 7-9-53, the lease of coin-operated 1) Governmental agencies. (7-9-54)
machines, and for the purchase of manufactured homes as defined in Sec- 2) 501(c)(3) organizations. (7-9-60) These organizations register with the
tion 7-9-3(G). (7-9-50) Formerly Type 3. Taxation and Revenue Department and submit proof of Internal Revenue
4) For the purchase of tangible personal property or licenses for subse- Service 501(c)(3) nonprofit determination before they may execute Type 9
quent lease in the ordinary course of business, except for the lease of NTTCs.
furniture or appliances, the receipts from the rental or lease of which are 3) Federal or state-chartered credit unions. (7-9-54 and 7-9-61.2) For-
deductible under Subsection C of Section 7-9-53; the lease of coin-operated merly Type 14.
machines, and for the purchase of manufactured homes as defined in Sec- 4) Indian tribes, nations or pueblos when purchasing tangible personal
tion 7-9-3(G). (7-9-49) Formerly Type 4. property for use on Indian reservations or pueblo grants. (7-9-54)
TYPE 5 certificates may be executed: TYPE 15 certificates may be executed by qualified federal contractors on a
1) For the purchase of services for resale if the subsequent sale by the contract-by-contract basis. A copy of the federal contract is required. The
buyer is in the ordinary course of business and the subsequent sale of Taxation and Revenue Department may contact you for additional informa-
the service is subject to gross receipts tax or governmental gross re- tion.
ceipts tax. (7-9-48)
2) For the purchase of services for export when sold to an out-of-state TYPE 16 certificates may be executed by:
buyer and delivery and initial use of the product of the service occurs 1) Qualified film production companies to purchase property, lease property
outside New Mexico. (7-9-57) Formerly Type 8. or purchase services. A qualified production company must submit proof of
3) By manufacturers for the purchase of services performed directly upon registration with the New Mexico Film Division of the Economic Develop-
tangible personal property they are in the business of manufacturing or ment Department. (7-9-86)
upon ingredient or component parts thereof. (7-9-75) Formerly Type 13. 2) Accredited diplomats or missions for the purchase of property or services
or the leasing of property. (7-9-89) Formerly Type D.
TYPE 6 certificates may be executed by a construction contractor to pur-
chase: TYPE NTTC-OSB certificates may be executed by OUT-OF-STATE
1) Construction materials that will become ingredients or components of a BUYERS for the purchase of tangible personal property that will be resold
construction project that is either subject to gross receipts tax upon comple- or become an ingredient or component of a manufactured product, or for
tion or that takes place on Indian tribal territory. (7-9-51) Enter your contractor’s services performed on a manufactured product. Type NTTC-OSBs must
license number on the application or submit proof that such a number is not be obtained by the seller.
required. (See note below.)
Note: Proof that a construction contractor's license is not required includes a detailed written statement explaining the circumstances that exclude the
contractor from the jurisdiction or application of New Mexico statutes which provide for construction contractor's licensing and regulation of construction
activity.
23 nmfilm.com
PRODUCTION TAX CREDIT AGREEMENT
PRODUCTION TITLE: “__________________________________________________”
THIS AGREEMENT entered into this _______ day of _______, 2005 by
____________________, (“Company”) and the State of New Mexico (“Grantor”), with respect to
Company’s production of a motion picture currently entitled “______________________________” (the
Picture).
The Company and the State of New Mexico agree as follows:
1. To be eligible for the Production Tax Credit, a film production company shall submit to the New
Mexico Film Division of the Economic Development Department information required by the division to
demonstrate conformity with the requirements of this section and shall agree:
(A.) to pay all obligations the film production company has incurred in New Mexico;
(B.) 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;
(C.) that outstanding obligations are not waived should a creditor fail to file by the specified date;
and
(D.) 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.
2. The New Mexico Film Division shall determine the eligibility of the company and shall report
this information to the Taxation and Revenue Department in a manner and at times the Economic
Development Department and the Taxation and Revenue Department shall agree upon.
3. To receive a Production Tax Credit, a film production company shall apply to the Taxation and
Revenue Department on forms and in the manner the Department may prescribe. The application shall
include a certification of the amount of direct production expenditures or technology expenditures made
in New Mexico with respect to the film production for which the film production company is seeking the
Production Tax Credit. If the requirements of this section have been complied with, the Taxation and
Revenue Department shall approve the Production Tax Credit and issue a document granting the tax
credit.
4. The film production company may apply all or a portion of the Production Tax Credit granted
against personal income tax liability or corporate income tax liability. If the amount of the Production Tax
Credit claimed exceeds the film production company's tax liability for the taxable year in which the credit
is being claimed, the excess shall be refunded.
COMPANY:
Company: __________________________________________________
By: _______________________________________________________
Title: ______________________________________________________
Date: ______________________________________________________
GRANTOR:
State of New Mexico
By: _______________________________________________________
Date: ______________________________________________________
15% Film Production Tax Rebate Guidelines
Photocopy and distribute to your department heads.
Note: The 15% tax rebate applies only to expenditures that are subject to
taxation in New Mexico.
· “Performing Artists” who arrange to be paid through a New Mexico loan-
out company, will qualifyfor the rebate.
· Employee fringe benefits paid to a payroll company qualify for the tax re-
bate, except State unemployment tax, workers compensation tax, FICA,
and Federal unemployment taxes.
· Per diem to out-of-state employees does qualify.
· Purchases made using petty cash must be documented by vendor receipts.
· A Declaration of Residency* form, and an I-9 form is required for the
payroll of every New Mexico resident you include for the tax rebate. *You
must get proof of residency (valid New Mexico driver’s license, current
New Mexico voter registration card, or copy of last year’s New Mexico
personal income tax return) from the employees you hire. Please make
certain that the employee completely fills out his/her Declaration of
Residency form,, and include a copy of that form in your ledger/summa-
ry report.
· Expenditures made to Section 501 (c) non-profit organizations do not
qualify because these organizations are tax exempt. These include Good-
will, Salvation Army, churches, museums, schools, etc.
· Purchases made on the Internet do not qualify.
· Payments made to the State or Federal Government do not qualify. This
would include permits and postage.
· Purchases made on tribal lands do not qualify, as they are tax exempt.
This includes service stations, restaurants, hotels, grocery stores, etc.
· Cell phone reimbursements when the billing address is outside of New
Mexico do not qualify.
· The address on your registration form should be your corporate, home or
primary office – not your production office, as your rebate check will be
sent to the address you list.
· Keep a summary of vendors’ names and receipts.
25 nmfilm.com
UNM GOLF COURSE photo: marblestreetstudio.com
filmnewmexico
a division of the New Mexico Economic Development Department
Joseph M. Montoya Bldg.
1100 St. Francis Dr.
Santa Fe, NM 87505-4147
(505) 827-9810
800-545-9871
FAX: (505) 827-9799
nmfilm.com
Front Cover Photo: Jean Lawton
This brochure is for illustrative purposes only and is
intended to provide a general review of programs
and policies described. It is not a contract. (c) 2005
New Mexico Economic Development Department
nmfilm.com 26