NMSA 1978, § 7-2F-12 — 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.