# New Mexico Film Tax Credit

Source: https://storiara.com/incentives/us/new-mexico
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> New Mexico's film production tax credit is refundable and starts at 25% of direct production and post spend taxable in New Mexico. Add 10% for work at least 60 miles from certain county seats, plus 5% for a qualifying TV series or a qualified stage, for a 40% maximum. Nonresident below-the-line crew can earn 15% within limits, and credits for nonresident performers are capped at $5 million per production.

## The base credit and what counts as New Mexico spend

The credit is 25% of direct production and postproduction expenditures made in New Mexico and subject to New Mexico taxation, for productions starting principal photography on or after July 1, 2023. It is a [refundable tax credit](https://storiara.com/glossary/refundable-tax-credit), so the production company files a New Mexico return and receives the balance as a refund after TRD approves the claim. A company can also assign the payment once, in full or in part, to a financial institution or other authorized third party.

"Subject to New Mexico taxation" is the test that disqualifies lines. TRD's FYI-370 lists what it will reject:

- Purchases from vendors with no physical address and resident employee in New Mexico, including internet orders
- Flights booked directly with an airline, or that don't start or end in New Mexico (book through a New Mexico travel agent)
- Entertainment, gifts over $100 a person, and family travel
- Nonresident performers without New Mexico withholding at the maximum rate

Some lines count only up to a limit: lodging to $300 per person per night, vehicle leases to $150 per day, on-camera artwork or jewelry to $2,500 an item. [Box rentals](https://storiara.com/glossary/box-rental) qualify when a New Mexico resident crew member supplies the kit along with their services.

## Uplifts and how they stack

| Uplift | Rate | Condition |
|---|---|---|
| Rural | +10% | Goods, services, and work provided on location at least 60 miles from the city hall of the county seat of a Class A county with net taxable value over $7.5 billion. TRD publishes the map. |
| TV pilot or series | +5% | Standalone pilot intended for NM series, or a series with an order of 6+ episodes, each with a $50,000+ New Mexico budget |
| Qualified production facility | +5% | Expenses incurred at a qualified stage (7,000+ sq ft, 18 ft ceiling) or standing set |

The series and facility uplifts are either/or, so the ceiling is 40%. The rural uplift excludes nonresident below-the-line crew, and rentals leased outside the rural zone are prorated by the days used inside it.

## Worked example: a $1,000,000 feature

A western spends $700,000 in New Mexico: $300,000 in resident crew wages and $400,000 with New Mexico vendors. Twelve of its 20 shoot days are at a ranch outside the rural line, and $280,000 of the spend is provided there. It brings in three nonresident department heads (DP, gaffer, production designer) earning $50,000 combined. Total NM below-the-line wages are $350,000.

- Base: $700,000 x 25% = $175,000
- Rural uplift: $280,000 x 10% = $28,000
- Nonresident BTL crew: wages eligible up to $350,000 x 15% = $52,500, so all $50,000 counts. $50,000 x 15% = $7,500. The five-position limit for budgets up to $2.75 million isn't exceeded.
- Total: $210,500

At $5,000,000 with $3,500,000 of New Mexico spend on stages at a qualified facility, the facility uplift gives 30%: $3,500,000 x 30% = $1,050,000. That's below the $5,000,000 threshold that triggers a CPA audit, so TRD reviews the ledger directly.

## Caps you can hit

Credits for services of nonresident performing artists are capped at $5 million per production. A New Mexico film partner (a company that bought or signed a 10-year lease on a qualified facility) can claim up to $10 million more per production for nonresident performers, directors, producers, writers, and editors, within a $40 million yearly aggregate.

The statewide cap is on credits paid per fiscal year. TRD's page lists $140 million for fiscal 2026, and FYI-370 describes the statutory schedule rising $10 million a year through fiscal 2028 and holding at $160 million from fiscal 2029. TRD posts monthly totals of credits claimed, so check remaining capacity before you promise a financier a payment date.

## Applying and getting paid

1. Register the production with the New Mexico Film Office before shooting. The film office approves eligibility; TRD decides which expenses qualify.
2. Collect New Mexico residency declarations (Form RPD-41271) with a driver's license or state ID for every resident.
3. Within one year of the last New Mexico expenditure, send TRD Form RPD-41418, the film office approval, and a ledger in Excel whose totals match the application. Add a New Mexico CPA's audit if the credit is over $5 million.
4. TRD has 120 days from a complete package to approve or deny.
5. File the New Mexico income tax return for each year of spend with Schedule CR and Form RPD-41228 to receive the refund.

## Nearby states

[Oklahoma](https://storiara.com/incentives/us/oklahoma) rebates 20% to 30% under a $30 million yearly cap and requires only $50,000 in spend. New Mexico's 25% refundable base is higher and its annual cap is five times larger. Compare [Arizona](https://storiara.com/incentives/us/arizona), [Colorado](https://storiara.com/incentives/us/colorado), [Texas](https://storiara.com/incentives/us/texas), and [Utah](https://storiara.com/incentives/us/utah) on the [incentives hub](https://storiara.com/incentives), run budgets through the [incentive calculator](https://storiara.com/tools/incentive-calculator), and read [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work) for the cash-flow side. Our [qualified spend](https://storiara.com/glossary/qualified-spend) entry explains the general concept TRD's rules build on.

Storiara's [budgeting feature](https://storiara.com/feature/budgeting) organizes costs into above the line, below the line, post, and other.

## Frequently asked questions

### What is the maximum New Mexico film tax credit?

40%. The 25% base plus a 10% rural uplift and one 5% uplift for either a qualifying TV series or a qualified production facility. The two 5% uplifts can't be combined.

### Is there a minimum spend for the New Mexico film credit?

The Taxation and Revenue Department's FYI-370 guide lists no minimum spend for the base credit. The TV series uplift does require a New Mexico budget of at least $50,000 per episode for at least six episodes.

### How much film credit can New Mexico pay each year?

TRD lists a $140 million cap for fiscal year 2026. Under Section 7-2F-12 the cap rises $10 million a year through fiscal 2028, which puts fiscal 2027 (July 2026 to June 2027) at $150 million, and it is $160 million from fiscal 2029 on.

### Do out-of-state crew count toward the New Mexico credit?

Nonresident below-the-line crew can earn a 15% credit, but only on wages up to 15% of the production's NM below-the-line wage budget and for a limited number of positions: five for budgets up to $2.75 million, rising to a 20-position ceiling.

## Sources

- [NM Taxation and Revenue Department, Film Production Tax Credit](https://www.tax.newmexico.gov/tax-professionals/tax-credits-overview-forms/film-production-tax-credit/)
- [NM Taxation and Revenue Department, FYI-370 Information Regarding Film Production Tax Credits (07/01/2025)](https://realfile.tax.newmexico.gov/FYI-370.pdf)