New Mexico Film Production Tax Credit Application

Film Production Tax Credit Application
Form RPD-41229 (Obsolete)
RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

APPLICATION FOR FILM PRODUCTION TAX CREDIT

The purpose of this form. This form may be used by a film production company that commences principal photography prior to January
1, 2016, for a film project as approved by the Film Office of the New Mexico Economic Development Department (EDD) to apply for a
film production tax credit. Submit this completed application with required documentation to the Taxation and Revenue Department. See
the instructions for a complete description of the requirements. A film production company that commences principal photography on or
after January 1, 2016, that is determined to be eligible by EDD must use form RPD-41381, Application for Film and Television Tax Credit.
For assistance, call (505) 841-6338 or send email to [email protected].
Taxpayer identification number (SSN or FEIN)

Name of film production company

Mailing address
Name of contact person

City, state and ZIP code
E-mail address

Telephone number

Enter the title of the eligible project as indicated on the New Mexico Film Office registration form.

Col 1. Qualifying expenditures

Col 2. Credit amount claimed

1. 	 Total qualifying direct production expenditures (25%).............
2.	 Total direct production expenditures qualifying for an
	
additional 5% for television pilots and series...........................
3.	 Total direct production expenditures qualifying for an
	
additional 5% for qualifying production facilities......................
4.	 Total qualifying postproduction expenditures (25%)................
5.	
	
	
	

Total expenditures attributable to a production on
which the film production company receives a tax
credit 	pursuant to the federal new markets tax credit
program (20%).........................................................................

6.	 Total film production tax credit claimed. Round to the nearest
whole dollar and enter the sum of Column 2, lines 1-5...........

I certify that the amounts identified as direct production and postproduction expenditures included in this application on line
6, column 2 are qualifying expenditures according to the provisions of the Film Production Tax Credit Act. Furthermore, I
declare I have examined this application, including accompanying invoices, schedules and/or statements, and to the best
of my knowledge and belief this application is true, correct and complete.

Authorized Signature				

Title					

FOR DEPARTMENT USE ONLY

Date

This application for film production tax credit was reviewed by the Taxation and Revenue Department and was:
		Approved in the amount of	

		$

		Adjusted and approved in the amount of		

$

		Disapproved
Reason for adjustment/disapproval

Signature of Director or Delegate			

Date

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions

These instruction and definitions are modified to reflect the
laws applicable for film projects that begin principal photography before January 1, 2016, and for applications submitted
to the Film Office of the New Mexico Economic Development
Department (EDD) after June 19, 2015. To contact the Film
Office, call (505) 476-5600 or (800) 545-9871. For film production companies that commence principal photography on
or after January 1, 2016, use Form RPD-41381, Application
for Film and Television Tax Credit, to claim the tax credit.
If the amount of the requested tax credit exceeds $5,000,000,
the application shall also include the results of an audit, conducted by a certified public accountant licensed to practice in
New Mexico, verifying that the expenditures have been made
in compliance with the requirements of the Film Production
Tax Credit Act.
ABOUT THIS CREDIT: The film production tax credit provides
a tax credit for an eligible film production company and its
corresponding project. The amount of the credit is equal to
25% of eligible direct production and postproduction expenditures made in New Mexico. See Important Definitions
for the definitions of direct production and postproduction
expenditures.
To apply for the film production tax credit, a film production
company must first register the project with the Film Office
of EDD for verification of eligibility, as defined in statute. The
film production company may apply for the credit by completing Form RPD-41229, Application for Film Production Tax
Credit, and submitting the application to EDD. After EDD has
confirmed all obligations have been met by the company, the
completed application is submitted to the Taxation and Revenue Department (TRD) who approves the credit and issues
a document granting it. The application must be submitted
within one year of the date of the last direct production or
postproduction expenditure in New Mexico.
An Additional 5% Allowed For Series Television Productions and Certain Standalone Pilots Intended For Series
in NM, or For Use of a Qualified Production Facility

Page 1 of 6

production and has filed a New Mexico income tax return
as a resident in the two previous tax years;
●● not more than thirty million dollars that shoots at
least ten principal photography days in New Mexico
at a qualified production facility; provided that a film
production company in principal photography on or
after April 10, 2015 shall:
►► shoot at least seven of those days at a sound stage
that is a qualified production facility and the remaining number of required days, if any, at a standing
set that is a qualified production facility; and
►► for each of the ten days, include industry crew
working on the premises of those facilities for a
minimum of eight hours within a 24-hour period; or
●● thirty million dollars or more that shoots at least
fifteen principal photography days in New Mexico
at a qualified production facility; provided that a film
production company in principal photography on or
after April 10, 2015 shall:
►► shoot at least ten of those days at a sound
stage that is a qualified production facility and
the remaining number of required days, if any,
at a standing set that is a qualified production
facility; and
►► for each day of the 15 days, include industry
crew working on the premises of the facility for a
minimum of eight hours within a 24-hour period.
For taxpayers who receive a new markets tax credit from the
federal government for expenditures that also qualify for the
New Mexico film production tax credit, the percentage used
for calculating the New Mexico credit is limited to 20%, including productions that may qualify for the additional 5% credit.
Qualifying direct production and direct postproduction expenditures must:
●● be directly attributable to the production in New Mexico
of a film or commercial audiovisual product;

If the production company submits their application for film
production tax credit on or after June 20, 2015, the additional
5% applied in calculating the amount of the film production
tax credit applies to applicable direct production expenditures:

●● be subject to taxation by the state of New Mexico;

●● on a standalone pilot or on series television productions
intended for commercial distribution with an order for at
least six episodes in a single season; provided that the
New Mexico budget for each of those six episodes is
$50,000 or more; or

●● not exceed the usual and customary cost of the goods or
services acquired when purchased by unrelated parties*.

●● on a production with a total New Mexico budget of the
following amounts; provided that the expenditures are
directly attributable and paid to a New Mexico resident
who is hired as industry crew, or who is hired as a producer, writer or director working directly with the physical

●● exclude direct production and direct postproduction
expenditures for which another taxpayer claims the film
production tax credit, and

*The TRD Secretary may determine the value of the goods
or services acquired when purchased by unrelated parties
or the sale or purchase is not an arm's length transaction.
The film production tax credit shall not be claimed for expenditures for which the film production company has delivered a
nontaxable transaction certificate pursuant to Section 7-9-86
NMSA 1978.

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions
Continued

IMPORTANT: Expenditures must be directly attributable to
film production in New Mexico and subject to taxation by the
State of New Mexico.
Instructions for Completing Form RPD-41229:
Name/address block Complete all information requested.
If the contact for the permanent records is different, also attach the contact information for the person in charge of the
permanent records for the application.
Enter the title of the eligibile project as indicated on the New
Mexico Film Office registration form.
Line 1. In column 1, enter the total qualifying direct production expenditures made in New Mexico directly attributable
to the production in New Mexico of the film project, for which
this credit is claimed. Multiply the qualifying expenditures in
column 1 by 0.25 (25%), and enter the product in column 2.
Line 2. In column 1, enter the direct production expenditures
from line 1 above which qualify for the additional 5% for television pilots and series. Qualifying expenditures must be made
on or after April 15, 2013. To determine project eligibility and
qualifying expenditures for the additional 5%, see An Additional 5% Allowed For Series Productions and Certain
Standalone Pilots Intended for Series in NM, or For Use
of a Qualified Production Facility, on the previous page.
Multiply the qualifying expenditures in column 1 by 0.5 (5%),
and enter the product in column 2.
Line 3. In column 1, enter the direct production expenditures
from line 1 above which qualify for the additional 5% for qualifying production facilities. Qualifying expenditures must be
made on or after April 15, 2013. To determine project eligibility
and qualifying expenditures for the additional 5%, see An
Additional 5% Allowed For Series Productions and Certain
Standalone Pilots Intended for Series in NM, or For Use
of a Qualified Production Facility, on the previous page.
Multiply the qualifying expenditures in column 1 by 0.5 (5%),
and enter the product in column 2.
Line 4. In column 1, enter the qualifying postproduction expenditures made in New Mexico directly attributable to the
production of a commercial film or audiovisual product for which
this credit is claimed. Multiply the qualifying expenditures in
column 1 by 0.25 (25%), and enter the product in column 2.
Line 5. If the film production company receives a credit
pursuant to the federal new markets tax credit program for
expenditures attributable to this production, the percentage
to be applied to direct production expenditures and postproduction expenditures is limited to 20%. The film production
company that receives the federal new markets tax credit,
enters the qualifying direct production and postproduction
expenditures in column 1 of line 5, and does not complete

Page 2 of 6

lines 1 through 4. On line 5, multiply column 1 by 0.20 (20%),
and enter the product in column 2.
Line 6. Round to the nearest whole dollar and enter the total
film production tax credit claimed. Add the sum of column 2,
lines 1 through 5.
Sign the application, enter your title and the date of signature.
By signing the application, you certify that the amounts identified as direct production and postproduction expenditures
included in the application are qualifying expenditures according to the provisions of the Film Production Tax Credit Act.
Required Supporting Documentation for Form RPD41229. Submit the following documentation to support your
claim:
●● A copy of the approval for eligibility from the New Mexico
Film Office.
●● A copy of the final cost-accounting summary for the project
with a breakout of the New Mexico costs for each line item.
●● The name, address, social security number and amount
paid to every resident of New Mexico for whom the
company wishes to claim credit for qualifying payments.
●● If the company has obtained Type 16 NTTCs from TRD,
a listing is needed of every person to whom the company
has delivered an NTTC. The list must contain the name,
address and New Mexico CRS identification number, if
applicable, and the dollar amount of purchases.
●● If the amount of the tax credit requested exceeds five million
dollars, the application must also include the results of an
audit, conducted by a certified public accountant licensed
to practice in New Mexico, verifying that the expenditures
have been made in compliance with the requirements of
the Film Production Tax Credit Act.
Wages, fringe benefits or fees for talent, management
and labor are eligible for the film production tax credit only
when paid to individuals who are New Mexico residents. Form
RPD-41271, Declaration of Residency, must be completed by
the New Mexico resident and retained in the records of the
film production company.
To Claim the Approved Film Production Tax Credit. Once
the film production company is determined to be eligible by
the Film Office and has been approved by TRD, a completed
Form RPD-41228, Film-Related Tax Credit Claim Form, including Schedule A, must be attached to a completed New
Mexico return (Form PIT-1, CIT-1, S-Corp, or FID-1) filed after
the close of the tax year for authorization for payment. For
qualifying expenditures made after April 15, 2013, the credit
may be claimed by filing the New Mexico PTE, Pass-Through
Entity Income and Information Return.

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions
Continued

All direct production expenditures and postproduction expenditures incurred during the tax year by a film production
company shall be submitted as part of the same income tax
return. A credit claim shall not be divided and submitted with
multiple returns or in multiple years.
If all or a part of the approved film production tax credit is
assigned to a third-party financial institution, or to an authorized third-party, Form RPD-41380, Notice of Assignment of
Film Production Tax Credit, must be submitted with the film
production company's income tax return, including Form RPD41228, Film-Related Tax Credit Claim Form. Form RPD-41380
authorizes TRD to pay the credit to the assigned third-party,
and must be attached to the claim form or the credit will be
paid to the film production company. See Assignment of Film
Production Tax Credits, later in these instructions.

Page 3 of 6

credit shall be paid 24 months following the date of the
first payment.
Any amount of a credit that is carried forward as described
above, is also subject to the total aggregate film production
tax credit limit of $50,000,000 paid in any fiscal year. However,
the portion of the amount of credit that is carried forward is
placed in front of the queue in the next fiscal year. If a partial
payment is made because the tax credit limit has been met in
a fiscal year, then the difference owed shall retain its original
position in the queue.
For purposes of determining the payment of credit claims
that are required to be paid out over multiple years, the TRD
Secretary may require that credit claims of affiliated persons
be combined into one claim, if necessary, to accurately reflect
closely integrated activities of affiliated persons.

Subject to certain limitations, the amount of the tax credit
authorized for payment may be applied to the tax due on
the return, or if the amount of the film production tax credit
exceeds the film production company's income tax liability for
the tax year, the excess may be refunded.

NOTE: No interest shall be paid on any amount refunded
under the Film Production Tax Credit Act.

Limitations on Receiving the Credit Claimed on a Return.
The aggregate film-related tax credits (film production tax credit
and film and television tax credit) that may be paid out in any
fiscal year is limited to $50,000,000. A claimed film-related
tax credit that is unable to be paid because total claims paid
during the current fiscal year exceeded $50,000,000, shall
be placed at the front of the queue for the next fiscal year.

If you are required to file:	
Federal Form 1040 		
Federal Form 1041 		
Federal Form 1065		
Federal Form 1120		
Federal Form 1120S		

The date a credit claim is received by TRD determines the
order that a credit claim is authorized for payment.
When credit claims are authorized by TRD, the film production
tax credits are paid as follows:
If the amount claimed by a film company is less than $2,000,000
in a tax year, the amount shall be applied or paid immediately
upon processing of the income tax return.
For credit claims of $2,000,000 or more in a tax year, the credit
shall be distributed over multiple years as follows:
●● If the credit amount claimed is $2,000,000 or more, but
less than $5,000,000 in a tax year, half of the amount of
the film and television tax credit shall be applied or paid
immediately upon processing of the income tax return
and the remainder shall be paid 12 months following the
date of the first payment, and
●● If the credit amount claimed is $5,000,000 or more in a
tax year, one third of the amount of the film production tax
credit shall be applied or paid immediately upon processing
of the income tax return, one third of the film production
tax credit shall be paid 12 months following the date of
the first payment, and one third of the film production tax

Completing the Income Tax Return:
Complete the income tax return, CIT-1, PIT-1, S-Corp, PTE, or
FID-1 based on the federal return that you are required to file.
File New Mexico form:
PIT-1 return
FID-1 return
PTE return
CIT-1 return
S-Corp return

You also need to complete the tax credit schedule, CIT-CR,
PIT-CR, S-Corp-CR or FID-CR. Enter the film production tax
credit approval number issued by TRD, the total amount approved and the amount of the credit that you want applied to
the tax liability due on the Schedule CR for business related
tax credits. TRD will compare the amounts entered and determine how and when the credit will be paid. No interest shall
be paid on any amount refunded under the Film Production
Tax Credit Act.
CAUTION: If the amount you request to be applied to the tax
liability due on the return is not eligible to be paid immediately,
you will be billed for the tax liability not paid, and you may be
subject to interest on the unpaid tax due.
For direct production expenditures made on or after April 15,
2013, an eligible film production company that is required to
file Federal Form 1065, may apply for a film production tax
credit, and may claim the credit on the New Mexico PTE return.
For direct production expenditures made before April 15, 2013,
the eligible film production company required to file Federal
Form 1065, may not claim the credit on the New Mexico PTE
return. In this case, the taxpayer filing the Form PTE must pass
approved film production tax credit to its owners, members

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions
Continued

or partners, using Form RPD-41366, Notice of Distribution of
Film Production Tax Credit. This form must be completed and
attached to Form RPD-41229, Application for Film Production
Tax Credit, at the time of making application for the credit, but
no later than the date the credit is approved by TRD. When
completing Form RPD-41366 do not complete the fields marked
“to be completed by TRD”. TRD will complete these fields
once the film production tax credit is approved. The amount
of tax credit distributed will be based on the percentage of
claim provided by the film production company.
For all tax programs, you must attach Form RPD-41228,
Film-Related Tax Credit Claim Form, including Schedule A,
to your return. Failure to attach this form will result in denial
of your claim for the credit.
Do not mail the return to the address on the income tax return. The completed income tax return and Form RPD-41228,
and Form RPD-41380, if applicable, must be mailed to: New
Mexico Taxation and Revenue Department, Attn: Film Production Tax Credit, P.O. Box 8485, 14th floor, Albuquerque,
NM 87198. Mailing to this address ensures that your claim
is recorded timely.
Assignment of Film Production Tax Credits
Once the film production company has received appproval from
TRD, a completed Form RPD-41380, Notice of Assignment of
Film Production Tax Credit, allows TRD to honor an assignment of a film production tax credit to a third-party financial
institution, or to an authorized third-party. Form RPD-41380
must be attached to the film production company's income
tax return on which the credit is claimed.
NOTE: Under current statute, only the film production tax
credit may be assigned to financial institutions or third parties.
The film and television tax credit, which applies to productions
commencing on or after January 1, 2016, cannot currently be
assigned. The Department will update these forms should the
film and television tax credit become assignable.
An approved film production tax credit can be assigned once,
and may not be further transferred or assigned.
For purposes of the Film Production Tax Credit Act,
1)	 an authorized third-party means an entity that:
(a)	 holds the rights to a film for which a film production
tax credit may be claimed; and
(b)	 initiates that film's production, and
2)	 a financial instituion means:
(a) 	a fund purposely created to produce a film; or
(b) 	a bank, savings institution or credit union that is

Page 4 of 6

organized or chartered pursuant to the laws of New
Mexico or the United States and that files a New
Mexico income tax return.
The financial institution or authorized third-party must be verified, in advance, by the Film Office.
IMPORTANT DEFINITIONS
"Affiliated person" means a person who directly or indirectly
owns or controls, is owned or controlled by or is under common
ownership or control with another person through ownership
of voting securities or other ownership interests representing
a majority of the total voting power of the entity.
"Background artist" means a person who is not a performing
artist but is a person of atmospheric business whose work
includes atmospheric noise, normal actions, gestures and
facial expressions of that person's assignment; or a person of
atmospheric business whose work includes special abilities
that are not stunts; or a substitute for another actor, whether
photographed as a double or acting as a stand-in.
"Commercial audiovisual product" means a film or a video
game intended for commercial exploitation.
"Direct production expenditure" means a transaction
subject to taxation in New Mexico, including:
(1) 	 payment of wages, fringe benefits or fees for talent,
management or labor to a person who is a New Mexico
resident;
(2) 	payment for wages and per diem for a performing artist
who is not a New Mexico resident and who is directly employed by the film production company; provided that the
film production company deducts and remits, or causes
to be deducted and remitted, income tax from the first
day of services rendered in New Mexico at the maximum
rate pursuant to the Withholding Tax Act;
(3) payment to a personal services business for the services
of a performing artist, if (a) the personal services business
pays gross receipts tax in New Mexico on the portion of
those payments qualifying for the tax credit, and b) the
film production company deducts and remits, or causes
to be deducted and remitted, income tax at the maximum
withholding rate in New Mexico withholding on the portion
of those payments qualifying for the tax credit paid to a
personal services business where the performing artist
is a full or part owner of that business or subcontracts
with a personal services business where the performing
artist is a full or part owner of that business. The amount
of tax withheld is an amount equal to the owner's share
of net income multiplied by the highest rate for single
individuals (4.9%); and

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions
Continued

(4)	 Any of the following provided by a vendor:
(a)	 The story and scenario to be used for a film;
(b)	 Set construction and operations, wardrobe, accessories and related services;
(c) 	 Photography, sound synchronization, lighting and
related services;
(d) 	 Editing and related services;
(e) 	 Rental of facilities and equipment;
(f) 	 Leasing of vehicles, not including the chartering of
aircraft for out-of-state transportation (New Mexicobased chartered aircraft for in-state transportation
directly attributable to the production shall be considered a direct production expenditure) provided that
only the first $100 of the daily expenses of leasing
a vehicle for passenger transportation on roadways
in the state may be claimed as a direct production
expenditure;
(g) 	 Food or lodging provided that only the first $150 of
lodging per individual per day is eligible to be claimed
as a direct production expenditure;
(h) 	 Commercial airfare if purchased through a New
Mexico-based travel agency or travel company for
travel to and from New Mexico or within New Mexico
that is directly attributable to the production;
(i) 	 Insurance coverage and bonding if purchased
through a New Mexico-based insurance agent,
broker or bonding agent,
(j)	

services for an external audit upon submission of
an application for a film production tax credit by an
accounting firm that submits the application pursuant
to this section; and

(k)	 Other direct costs of producing a film in accordance
with generally accepted entertainment industry
practice.
A direct production expenditure does not include:
(1) 	A gift with a value greater than $25;

Page 5 of 6

excluding a performing artist, where it is the standard
entertainment industry practice for the film production
company to employ a person for that industry crew position, except when the person who is not a New Mexico
resident is hired or subcontracted by a vendor; and when
the film production company, as determined by the Film
Office and when applicable in consultation with industry,
provides
(a) 	 reasonable efforts to hire resident crew; and
(b) 	 financial or promotional contributions toward education or
work force development efforts in New Mexico, including
at least one of the following:
●● a payment to a New Mexico public education institution
that administers at least one industry-recognized film
or multimedia program, as determined by the division,
in an amount equal to two and on-half percent of payments made to nonresidents in approved positions
employed by the vendor;
●● promotion of the New Mexico film industry by directors, actors or executive producers affiliated with the
production company's project through social media
that is managed by the state;
●● radio interviews facilitated by the division;
●● enhanced screen credit acknowledgments; or
●● related events that are facilitated, conducted or sponsored by the division.
The amount of a film production tax credit for total payments
as applied to direct production expenditures for services of
performing artists shall not exceed $5,000,000 for services
rendered by nonresident performing artists and featured
resident principal performing artists in a production. This
limitation does not apply to the services of background artists
and resident performing artists who are not cast in industry
standard featured principal performer roles.
NOTE: Direct production and postproduction expenditures may not exceed the cost of goods and services in
an arm's length transaction.

(2) 	Artwork or jewelry, except that a work of art or piece of
jewelry may be direct production expenditure if:

Direct production and postproduction expenditures
exclude:

	

(a) It is used in the film production; and

	

(b) The expenditure is less than $2,500

(1)	 expenditures for which the film production company has
delivered a nontaxable transaction certificate (NTTC)
Type 16 pursuant to 7-9-86 NMSA 1978. Type 16 NTTCs
may be executed by a qualified production company to
purchase property, lease property or purchase services
that qualify as production costs;

(3)		Entertainment, amusement or recreation;
(4)	 Subcontracted goods or services provided by a vendor
when subcontractors are not subject to state taxation,
such as equipment and locations provided by the military,
government, and religious organizations; or
(5) A service provided by a person who is not a New Mexico
resident and employed in an industry crew position,

(2)	 expenditures that are not subject to tax by New Mexico;
and
(3)	 expenditures for which another taxpayer claims the film
production tax credit.

RPD-41229
Rev. 09/27/2016

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

Application for Film Production Tax Credit Instructions
Continued

"Film" means a single medium or multimedia program, excluding advertising messages other than national or regional
advertising messages intended for exhibition, that:
(1) 	 is fixed on film, digital medium, videotape, computer disc,
laser disc or other similar delivery medium;
(2)		 can be viewed or reproduced;
(3)		 is not intended to and does not include sexually oriented
material harmful to minors or does not otherwise violate
a provision of Chapter 30, Article 37 NMSA 1978, and
(4)		 is intended for reasonable commercial exploitation for
the delivery medium used.
"Film production company" means a person that produces
one or more films or any part of a film and that commences
principal photography prior to January 1, 2016.
"Industry crew" means a person in a position that is off-camera and who provides technical services during the physical
production of a film. Industry crew does not include a writer,
director, producer, background artist or performing artist.
"New Mexico resident" means an individual who is domiciled
in this state during any part of the tax year or an individual
who is physically present in this state for 185 days or more
during the tax year; but any individual, other than someone
who was physically present in the state for 185 days or more
during the tax year and who, on or before the last day of the
tax year, changed the individual's place of abode to a place
outside New Mexico with the bona fide intention of continuing
actually to abide permanently outside New Mexico is not a
resident for the purposes of the Film Production Tax Credit
Act for periods after that change of abode.
"Performing artist" means an actor, on-camera stuntperson, puppeteer, pilot who is a stunt person or actor, specialty
foreground performer or narrator, and who speaks a line of
dialogue, is identified with the product or reacts to narration
as assigned. Performing artist does not include a background
artist.

Page 6 of 6

inventory, or otherwise creates, assembles, or offers for sale
the product purchased or leased by a film production company
and the business owner or an employee of the business is a
New Mexico resident.
"Postproduction expenditure" means an expenditure for
editing, Foley recording, automatic dialogue replacement,
sound editing, special effects, including computer-generated
imagery or other effects, scoring and music editing, beginning and end credits, negative cutting, soundtrack production, dubbing, subtitling or addition of sound or visual effects;
but not including an expenditure for advertising, marketing,
distribution, or expense payments.
"Principal photography" means the production of a film
during which the main visual elements are created.
"Qualified production facility" means a building or complex
of buildings, building improvements and associated back-lot
facilities in which films are or are intended to be regularly
produced and that contain at least one:
(1)	 sound stage with contiguous, clear-span floor space of
at least seven thousand square feet and a ceiling height
of no less than twenty-one feet; or
(2) 	standing set that includes at least one interior, and at least
five exteriors, built or re-purposed for film production use
on a continual basis and is located on at least fifty acres
of contiguous space designated for film production use.
"Vendor" means a person who sells or leases goods or
services that are related to standard industry craft inventory,
who has a physical presence in New Mexico and is subject
to gross receipts tax or personal or corporate income tax.
Vendor excludes a personal services business and services
provided by nonresidents hired or subcontracted if the tasks
and responsibilities are associated with:

"Personal services business" means a business organization, with or without physical presence, that receives payments
for the services of a performing artist.

(1)	 the standard industry job position of a director; a writer;
a producer; an associate producer; a co-producer; an
executive producer; a production supervisor; a director
of photography; a motion picture driver whose sole responsibility is driving; a production or personal assistant;
a designer; a still photographer; or a carpenter and utility
technician at an entry level; and

"Physical presence" means a physical address in New
Mexico from which a vendor conducts business, stores

(2)	 nonstandard industry job positions and personal support
services.