New Mexico Application for Film and Television Tax Credit

Application for Film and Television Tax Credit
Form RPD-41228
RPD-41228
Rev. 12/08/2016

State of New Mexico - Taxation and Revenue Department

FILM-RELATED TAX CREDIT CLAIM FORM

WHO MAY USE THIS FORM: After the film production company has received approval of the total qualifying expenditures on its
RPD-41229, Application for Film Production Tax Credit, or RPD-41381, Application for Film And Television Tax Credit, from the Taxation
and Revenue Department, a completed Form RPD-41228, Film-Related Tax Credit Claim Form, must be attached to the New Mexico
form PIT-1, CIT-1, S-Corp, PTE, or FID-1 return, on which approved film-related tax credits (film production tax credit and film and
television tax credit) are claimed. Subject to certain limitations, the amount of the tax credit may be applied to the tax due on the return.
If the amount of the film-related tax credit exceeds the film production company's income tax liability for the tax year, the excess may
be refunded. See the instructions to this form for more details about the limitations and how to complete the income tax return when
claiming the credit.
NOTE: No interest will be paid on any credit amount refunded pursuant to the Film Production Tax Credit Act (Section 7-1-68 NMSA
1978).
Attach this claim form to your e-filed income tax return or attach and mail this claim form with your return to: New Mexico Taxation and
Revenue Department, Attn: Film Production Tax Credit, P.O. Box 8485, 14th floor, Albuquerque, NM 87198. For assistance, call
(505) 841-6338 or send email to [email protected].
Name of the film production company (claimant)

Check one:	

Enter the FEIN or the SSN of the claimant

	

FEIN
SSN

Computation of the Amount of Tax Credit Claimed
1.	 Enter the beginning and ending date of the report period to which you wish
to claim approved tax credit.

From

2.	 Enter the net New Mexico income tax calculated before applying any
credit.

2.

$

3.	
Enter the sum of total credit from column (e), Schedule A, to be applied to the
	
tax due on your current New Mexico PIT-1, CIT-1, S-Corp, PTE or FID-1 tax
return. Also attach a completed Schedule CR for the applicable tax program.

3.

$

4.	 Enter the sum of total credit from column (f), Schedule A, to be refunded. Also
attach a completed Schedule CR for the applicable tax program.

4.

$

to

Enter the credit claimed on the applicable line of the New Mexico income tax Schedule PIT-CR, CIT-CR, S-Corp-CR, or
FID-CR, and attach it to the New Mexico income tax return on which the credit is to be applied. You may also claim a refund
of this credit by attaching this claim form to your pass-through entity return.
NOTE: Failure to attach this form, including Schedule A, to your New Mexico income tax return will result in denial of the credit.
I declare that I have examined this return including any accompanying schedules and statements, and to the best of my knowledge
and belief, it is true, correct and complete.
Signature of Taxpayer or Agent _______________________________ Title ______________________ Date __________________

Refund Express. If you request the credit to be refunded to you and the credit will be paid out in future years, you may wish
to have your future payments deposited directly into your bank account through Refund Express. Complete the “Refund
Express” portion below when the credit claims authorized for payment may be distributed over multiple years. The Refund
Express information reported on the income tax return to which you apply the credit will determine where the refundable
portion of the film production tax credit that is paid. The Refund Express information below will determine where the refundable portion of future payments is paid. See "Limitations on Receiving the Credit Claimed on a Return" in these instructions.
All fields are required. Complete the bank routing number, the account number, and you must mark the appropriate box
to indicate the type of account. Failure to complete all fields will cause your Refund Express request to be denied, and the
Department will mail you a paper check. Question 4 is required: A direct deposit of your refund, "Refund Express", may
not be made to a bank account located at a financial institution outside the territorial jurisdiction of the United States. See
page 2 of 3 in these instructions, for more information.
REFUND EXPRESS!! Have YOUR REFUND directly deposited.
	
	

1.	Routing number:
2. Account number:

See instructions and fill in 1, 2, 3 AND 4.

3. Type: Checking	
Enter "X"

Savings
Enter "X"

4. REQUIRED: WILL THIS REFUND GO TO OR
THROUGH AN ACCOUNT LOCATED OUTSIDE
THE UNITED STATES? If yes, you may not use this
refund delivery option. See instructions.
YES

NO

You must answer
this question.

State of New Mexico - Taxation and Revenue Department

RPD-41228
Rev. 12/08/2016

FILM-RELATED TAX CREDIT CLAIM FORM
Schedule A

To claim approved film production tax credit or film and television tax credit, complete and attach Form RPD-41228, FilmRelated Tax Credit Claim Form, including this schedule, to your New Mexico tax return. Also attach the applicable tax credit
Schedule PIT-CR, CIT-CR, S-Corp-CR or FID-CR to your return. A Schedule CR is not needed if applying the credit against
a pass-through entity return.
(a)
TRD - credit approval #

(b)
Date of approval

(c)
Amount of credit
approved

(d)
Amount of credit
assigned

TOTAL credit Enter the sum of columns (e) and (f) here and
on lines 3 and 4 of Form RPD-41228, page 1, respectively.

(e)
Amount applied to the
attached return

(f)
Amount to be refunded

RPD-41228
Rev. 12/08/2016

State of New Mexico - Taxation and Revenue Department

FILM-RELATED TAX CREDIT CLAIM FORM
Instructions

To Claim an Approved Film-Related Tax Credit. After
the film production company is determined eligible by
the Film Office and RPD-41229, Application For Film
Production Tax Credit, or RPD-41381, Application For Film
And Television Tax Credit, and has been approved by the
Taxation and Revenue Department (TRD), film-related tax
credits (film production tax credit and film and television
tax credit) may be claimed by attaching a completed
Form RPD-41228, Film-Related Tax Credit Claim Form,
including Schedule A, to the film production company's
New Mexico income tax return (Form PIT-1, CIT-1, S-Corp,
or FID-1) filed after the close of its tax year for authorization
for payment. The income tax return must be timely filed.
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.
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. Claim the credit in full on the return for
the year expenses were incurred. Do not divide and submit
the credit claim with multiple returns or in multiple years.
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-related tax credit
exceeds the film production company's income tax liability
for the tax year, the excess may be refunded. No interest
will be paid on any credit amount refunded pursuant to
the Film Production Tax Credit Act (Section 7-1-68 NMSA
1978).
Limitations on Receiving the Credit Claimed on a
Return
The total aggregate film-related tax credits that may be paid
out in any fiscal year is limited to $50,000,000. A claimed
film and television tax credit or film production 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.
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-related
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.

Page 1 of 3

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 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-related
tax credit shall be applied or paid immediately upon
processing of the income tax return, one third of the
film-related tax credit shall be paid 12 months following
the date of the first payment, and one third of the
film-related tax credit shall be paid 24 months following
the date of the first payment.
Any amount of a credit claim that results in payments in
multiple years as described previously, is also subject to the
total aggregate film-related tax credit limit of $50,000,000
paid in any fiscal year. However, the portion of the amount
of the credit payment not yet paid 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.
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.
If you are required to file:	
Federal Form 1040 		
Federal Form 1041		
Federal Form 1065		
Federal Form 1120 		
Federal Form 1120S 		

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 total film-related
tax credit approved and the amount of the credit that you
want applied to the tax liability due and refunded on the
Schedule CR for business related tax credits. TRD will

RPD-41228
Rev. 12/08/2016

State of New Mexico - Taxation and Revenue Department

FILM-RELATED TAX CREDIT CLAIM FORM
Instructions

compare the amounts entered and determine how and
when the credit will be paid.
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 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.
Attach RPD-41228 to your e-filed income tax return
or attach and mail the claim form with your completed
return to: New Mexico Taxation and Revenue, 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.
IMPORTANT: Do not mail the return to the address on the
income tax return.
Assignment of Film Production Tax Credits
After the film production company has received approval
for the total qualifying expenditures from TRD, a completed
Form RPD-41380, Notice of Assignment of Film Production
Tax Credit, allows TRD to honor an assignment of the 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 institution means:
(a) 	a fund purposely created to produce a film; or
(b) 	a bank, savings institution or credit union that is

Page 2 of 3

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.

Schedule A Instructions
For each approved film-related tax credit (film production
tax credit and film and television tax credit), complete a
row in Schedule A. Do not include credits which have been
claimed in full..
COLUMN INSTRUCTIONS
(a) TRD - credit approval #. Enter the credit number
assigned by TRD from the approval documentation.
(b) Date of approval. Enter the date of TRD's approval for
the credit from the approval notice.
(c) Amount of credit approved. For each credit, enter the
amount of credit approved.
(d) Amount of credit assigned. For each film production
tax credit, enter the amount of credit assigned to a
third-party financial institution or to an authorized
third-party, and attach a Form RPD-41380, Notice of
Assignment of Film Production Tax Credit, for each
assignment of all or a portion of the credit.
NOTE: RPD-41366, Notice of Distribution of Film
Production Tax Credit, indicating credit transfer from a
pass-through entity to an owner, member, or partner,
must be submitted along with applications RPD-41229 or
RPD-41381.
(e) Amount applied to the attached return. For each
credit, enter the total amount of credit claimed and applied
to the liability due on the attached return.
(f) Amount to be refunded. For each credit, enter in
column the amount of excess credit that is to be refunded
to the taxpayer. To determine this amount, subtract the sum
of columns (d) and (e) from column (c).
NOTE: Failure to attach Form RPD-41228 and Schedule
A, to your New Mexico tax return will result in denial of the
credit.
Refund Express—Question 4 is required: A direct
deposit of your refund, Refund Express, may not be made
to a bank account located at a financial institution outside
the territorial jurisdiction of the United States. In order
to comply with federal banking rules, anyone wishing to
have their refund directly deposited into their account must
answer an additional question when completing the Refund

RPD-41228
Rev. 12/08/2016

State of New Mexico - Taxation and Revenue Department

FILM-RELATED TAX CREDIT CLAIM FORM
Instructions

Express portion of their return or claim form. If you do
not answer the question, your refund will be mailed to you
in the form of a paper check. If you answer the question
incorrectly, your refund may be delayed, rejected or frozen
by the National Automated Clearing House Association or
the Office of Foreign Assets Control.
The question asks whether the refund will go to or through
an account located outside the United States. The question
also warns you that if the answer is yes, you should not
choose the Refund Express method of delivering your
refund. Your options are to use a different bank account or
to leave the Refund Express portion of your return blank
and a paper check will be mailed to the address on the
return.
A financial institution is located within the territorial jurisdiction
of the United States if it is located:
●● within the United States;
●● on a United States military base; or
●● in American Samoa, Guam, the Northern Mariana Islands,
Puerto Rico or the U.S. Virgin Islands.
Refund Express is available for deposits to the taxpayer’s
account only. Taxpayers may not request the funds to
be deposited into the account of another payee.
TRD is not responsible for the misapplication of a direct
deposit refund that is caused by the error, negligence or
malfeasance on the part of the taxpayer. Verify that you
enter the correct bank information.
Why Use Refund Express?
●● Avoid delays that may occur in mailing a check. Refund
Express does not guarantee that you will receive your
refund check earlier—only that when the check is
issued, it will reach the bank more quickly.

Page 3 of 3

●● Payment is more secure. There is no check to get lost.
●● More convenient. No trip to the bank to deposit your
check.
●● Saves tax dollars. A refund by direct deposit costs less
than a check.
What is the Routing Number?
The routing number is for bank identification and must be
nine digits. If the first two digits are not 01 through 12 or
21 through 32, the system will reject the direct deposit and
you will receive a check.
Your check may state that it is payable through a bank
different from the financial institution where you have your
checking account. If so, do not use the routing number on
that check. Instead, contact your financial institution for the
correct routing number to enter on this line.
Entering Your Account Number
Your account number can be up to 17 characters. Include
hyphens, but omit spaces and special symbols. Enter the
number from left to right. Leave unused boxes blank. Do
not include the check number.
You must indicate the type of account. Place an X in
the Checking box if it is a checking account, or in the
Savings box if the account is a savings account. This field
is required.
CAUTION: Verify that the information you enter is correct
and that your financial institution will accept a direct deposit
payable to the name on CIT-1, PIT-1, S-Corp, PTE, or
FID-1 income tax return.
NOTE: TRD will mail you a paper check if your bank does
not accept your Refund Express information.