New Mexico Film Production Tax Credit
New Mexico Film Office / New Mexico Taxation and Revenue Department
25–40% of NM production spend
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
- For-profit film, television, commercial, music video, animation, and digital media production companies
- No minimum spend requirement — all qualifying New Mexico expenditures are eligible
- Expenditures must be direct production costs incurred in New Mexico
- Rural uplift (+10%): production must take place 60+ miles from Albuquerque or Santa Fe city centers
- TV series uplift (+5%): applies to pilots and episodic series
- Qualified facility uplift (+5%): production must use a certified New Mexico qualified production facility
- Non-resident labor qualifies if work is physically performed in New Mexico
- Post-production work performed in New Mexico qualifies
Hard requirements
- Must be incorporated
- Restricted to industry: film, television, commercial, or media production
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
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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
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
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.
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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
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.
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.