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active State Tax Credit

New Mexico Film Production Tax Credit

New Mexico Film Office / New Mexico Taxation and Revenue Department

25–40% of NM production spend

Researched for this program: 4 rejection traps · 6 required documentsWhat decides this award ↓

The short version

Refundable 25–40% NM film credit

New Mexico's film production tax credit is one of the most competitive in the US: a 25% base refundable credit on direct in-state production expenditures, with stackable uplifts that can push the effective rate to 40%. The credit is refundable — the state pays the credit in cash regardless of the production company's New Mexico tax liability. No minimum spend requirement. Annual fiscal year cap of $140 million for FY 2026.

Funding type
Tax Credit
Level
State
Amount
25% refundable base credit on direct New Mexico production expenditures. Stackable uplifts: +10% for rural productions (60+ miles from Albuquerque or Santa Fe); +5% for TV pilots or series; +5% for shooting at a qualified facility. Maximum effective rate: 40%. Annual FY 2026 Film Fund cap: $140,000,000.
Realistic amount
A $5M New Mexico spend earns $1.25M at the base 25% rate, or up to $2M at the 40% maximum. Credits are paid as cash by t…
Deadline
Rolling — no intake cycles. Apply through New Mexico Film Office before production begins. FY 2026 annual cap is $140M; apply early in the fiscal year.
Status
active
States
NM
Payment model
tax offset

Who qualifies

Hard requirements

What it covers

Eligible expenses

  • New Mexico resident and non-resident labor (for work physically performed in New Mexico)
  • Equipment rentals from New Mexico vendors
  • Location fees paid to New Mexico landowners and facilities
  • Qualified production facility fees at certified studios
  • Post-production services performed in New Mexico
  • Materials and supplies purchased from New Mexico vendors

Ineligible expenses

  • Development costs, script rights, and story acquisition
  • Costs incurred outside New Mexico
  • Marketing, distribution, and publicity costs for the completed project
  • Pass-through costs to out-of-state vendors

How to apply

  1. 1

    Register with New Mexico Film Office

    Contact the NMFO before production begins to register your project and confirm eligibility. Obtain a production certificate or pre-certification documentation.

  2. 2

    Track and document New Mexico expenditures

    Maintain detailed records of all in-state payroll, vendor payments, facility rentals, and equipment costs. Distinguish between New Mexico-qualifying and out-of-state costs.

  3. 3

    Submit cost report and claim credit

    After production wraps, file a New Mexico Corporate Income and Franchise Tax return and claim the credit using the applicable tax forms. A CPA or accountant familiar with NM film credit rules is strongly recommended.

  4. 4

    Receive refund

    Because the credit is refundable, if the credit exceeds the production company's NM tax liability, the state pays the balance as a cash refund. Processing typically takes 3–9 months after filing.

Industry & certifications

NAICS codes: 512110, 512120, 512191

Insider tip

Unlike Georgia, NM pays refunds in cash — no need to sell credits to a third party. The rural +10% uplift is the most impactful: productions 60 miles from ABQ/Santa Fe earn 35% base vs. 25% — worth planning the shoot location around.

Deadline & timing

The $140M annual cap is FY 2026 specific and can be exhausted mid-year — productions should register their credit claim early. New Mexico fiscal year runs July 1–June 30. Credit is claimed after production is complete and costs are verified.

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