NM Film Production Tax Credit

NM Film Production Tax Credit

Offers New Mexico film and post-production producers refundable tax credits tied to local production spending.

Eligibility · United States · US-NM

The New Mexico Film Production Tax Credit is a refundable state tax credit administered jointly by the New Mexico Taxation and Revenue Department (TRD) and the New Mexico Film Office within the Economic Development Department (EDD). Authorized under the Film Production Tax Credit Act (NMSA 1978 §§7-2F-1.1 through 7-2F-15), the program incentivizes film and television production activity within New Mexico by crediting qualifying direct production and post-production expenditures that are subject to New Mexico taxation. The FY2026 annual fund cap is $140 million; as of April 2026, $86.4 million had been claimed or paid, leaving approximately $53.6 million available in the current fiscal year.

Eligible applicants are production companies with direct production expenditures or direct post-production expenditures subject to New Mexico taxation. A separate uncapped tier — the Partner Film Production Tax Credit — exists for companies designated as NM Film Partners, with no annual cap on credits under that designation. A rural-area premium credit rate was added by 2019 Senate Bill 2, providing an additional incentive for productions filmed in rural New Mexico counties. The credit is refundable, meaning any amount exceeding the applicant's tax liability is returned as cash. For credits exceeding $5 million, a CPA audit conducted by a New Mexico-licensed auditor must accompany the application.

The multi-agency process begins before filming: production companies must register the project with the NM Film Office (EDD) before production begins and obtain project certification. After production, the credit application and any required CPA audit are submitted to TRD's Film Credit Unit. Applications with smaller credit amounts are handled directly through TRD's Revenue Processing Unit. Applicants should contact the NM Film Office at 505-476-5600 or nm.film@nmfilm.com for pre-production registration and TRD's Film Credit Unit at 505-795-1735 for credit processing.