2023 New Mexico Statutes › Chapter 7 - Taxation › Article 2F - Film Production Tax Credit › Section 7-2F-12 - Credit claims; certification of direct production and postproduction expenditures; aggregate amount of claims allowed; exception.

A. The division shall certify a film production company's budget for direct production expenditures and postproduction expenditures during a preproduction meeting with the division; provided that the division is prohibited from certifying a film production company's budget if the total expected claims in excess of the aggregate amount of claims that may be authorized for payment pursuant to Subsection B of this section would exceed one hundred million dollars ($100,000,000) in any fiscal year; and provided further that the limitation in this subsection shall not apply to certification of a budget for a New Mexico film partner.
B. Except as provided in Laws 2019, Chapter 87, Section 10, the aggregate amount of claims for a credit provided by the Film Production Tax Credit Act that may be authorized in any fiscal year with respect to the direct production expenditures or postproduction expenditures made on film or commercial audiovisual products shall be in the following amounts; provided that direct production expenditures and postproduction expenditures made by a New Mexico film partner shall not be subject to the aggregate amount of claims provided by this subsection:
(1) prior to fiscal year 2024, one hundred ten million dollars ($110,000,000);
(2) from fiscal year 2024 through fiscal year 2028, the amount provided in Paragraph (1) of this subsection shall be increased by ten million dollars ($10,000,000) in each of those fiscal years; and
(3) for fiscal year 2029 and subsequent fiscal years, one hundred sixty million dollars ($160,000,000).
C. If a film production company submits a claim for a credit pursuant to the Film Production Tax Credit Act and the aggregate amount of claims pursuant to Subsection B of this section has been met for the fiscal year, the claim shall be placed at the front of a queue for payment in a subsequent fiscal year. Claims shall be placed in order of the date on which the completed return in which the credit is claimed is filed. Claims authorized for payment shall be paid pursuant to the Tax Administration Act [Chapter 7, Article 1 NMSA 1978].
D. To provide guidance to film production companies regarding the amount of credit capacity remaining in the fiscal year, the taxation and revenue department shall post monthly on that department's website the aggregate amount of credits claimed and paid for the fiscal year. In addition, the division shall post monthly on the division's website the aggregate amount of claims certified pursuant to Subsection A of this section for the fiscal year or any subsequent fiscal year.
History:
Laws 2015, ch. 143, § 11; repealed and reenacted by Laws 2019, ch. 87, § 6; 2023, ch. 211, § 32.
ANNOTATIONS
Repeals and reenactments.
— Laws 2019, ch. 87, § 6 repealed and reenacted 7-2F-12 NMSA 1978, effective July 1, 2019.
The 2023 amendment,
effective June 16, 2023, increased the film production tax credit, and removed the definition of "New Mexico film partner"; in Subsection B, in the introductory clause, after "may be authorized", deleted "for payment", after "any fiscal year", deleted "is one hundred ten million dollars ($110,000,000)", and after "audiovisual products", added "shall be in the following amounts", added new Paragraphs B(1) through B(3); deleted Subsection D and redesignated former Subsection E as Subsection D; and deleted former Subsection F.
Applicability.
— Laws 2023, ch. 211, § 43 provided:
A. The provisions of Laws 2023, ch. 211, § 9 apply to taxable years beginning on or after January 1, 2023.
B. The provisions of Laws 2023, ch. 211, §§ 31 through 35 apply to film production companies that commence principal photography for a film or commercial audiovisual product on or after July 1, 2023.
Temporary provisions.
— Laws 2019, ch. 87, § 10 provided that:
A. In addition to the aggregate amount of claims that may be paid pursuant to Section 7-2F-12 NMSA 1978, a claim for a tax credit approved by the taxation and revenue department pursuant to the Film Production Tax Credit Act shall be paid:
(1) prior to July 1, 2019; provided that the aggregate amount of claims for credits that may be authorized for payment pursuant to this subsection does not exceed one hundred million dollars ($100,000,000); and
(2) on or after July 1, 2019, but prior to July 1, 2020; provided that the aggregate amount of claims for credits that may be authorized for payment pursuant to this subsection does not exceed ninety-five million dollars ($95,000,000) and that the claim meets the requirements of the Film Production Tax Credit Act; provided further that, if the fiscal year 2019 general fund revenues estimated by the consensus revenue estimating group presented to the legislative finance committee in August 2019 exceeds the fiscal year 2019 general fund revenues forecasted by the consensus revenue estimating group in February 2019 by at least thirty million dollars ($30,000,000), then the ninety-five million dollar ($95,000,000) threshold shall be increased to one hundred twenty-five million dollars ($125,000,000).
B. A claim that exceeds the authorized amounts to be paid as provided in this section shall be paid in accordance with the applicable provisions of the Film Production Tax Credit Act, as those provisions were in effect on the date the claim was approved.