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
• insurance and bonding purchased through a New Mexico-based insurance agent
• other direct costs

1. Submit script to Film Office Director for determination of rating.
   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 rating, the Film Office will call you.
2. Complete the Film Production Company Registration Form (download), The Production Tax Credit Agreement (download)
and Application for Business Tax ID Number (download). 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 (download) to your department heads. This will help maximize your rebate and minimize expenditures 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 (download). 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 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 compile a comprehensive list of New Mexico expenditures and calculate your 15% rebate.
9. Complete the Application for Film Production Tax Credit form (download). Mail this package to: Jerry Montoya, Audit & Compliance Division/ 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 (download) 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 Taxation and Revenue Department (address listed in Step 9). The credit will 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 (download). 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 loanout company will qualify for the rebate.
• Employee fringe benefits paid to a payroll company qualify for the tax rebate, 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/ summary report.
• Expenditures made to Section 501 (c) non-profit organizations do not qualify because these organizations are tax exempt. These include Goodwill, 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.

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 coupons. A certificate is presented at the point of sale, and no gross receipts tax is charged.

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 related 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

1. Complete the following forms:
• Film Production Company Registration form (download)
• Application for Business Tax Identification Number (download)
• Application for Nontaxable Transaction Certificates – NTTCs (download)
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.