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State of New Mexico - Taxation and Revenue Department

RPD-41228

Rev. 09/26/2012

FILM PRODUCTION TAX CREDIT CLAIM FORM

Instructions

of the first payment, and one third of the film production

ABOUT THIS CREDIT:

The film production tax credit, Section 7-9F-1 NMSA 1978,

tax credit shall be paid 24 months following the date of

provides a credit for an eligible film production company. The

the first payment.

amount of the credit is equal to 25% of direct production and

Any amount of a credit claim that is carried forward as de-

direct postproduction expenditures made in New Mexico,

scribed above, is also subject to the total aggregate fiscal year

subject to certain limitations. A 20% credit rate applies for

limitation described above. For purposes of determining the

expenditures for which the taxpayer receives a new markets

payment of credit claims as described above, the secretary

tax credit from the federal government. IMPORTANT: Direct

of the Taxation and Revenue Department may require that

production expenditures must be directly attributable to film

credit claims of affiliated persons be combined into one claim

to accurately reflect closely integrated activities of affiliated

production in New Mexico and both direct production and

persons.

post production expenditures must be subject to taxation by

the State of New Mexico. The film production tax credit may

To obtain authorization for payment of the film production tax

not be claimed for expenditures for which the film production

credit, the claim must be made on a completed income tax

company has delivered a nontaxable transaction certificate

return filed timely after the close of the taxable year. All ex-

pursuant to Section 7-9-86 NMSA 1978. For details of the limits

penses incurred during the taxable year shall be submitted as

on expenditures, see the instructions for Form RPD-41229,

part of the same income tax return. A credit claim shall not be

Application for Film Production Tax Credit.

divided and submitted with multiple returns or in multiple years.

To be eligible for the film production tax credit, a film production

NOTE: No interest shall be paid on any amount refunded

company must first be approved by the Film Division of the

under the Film Production Tax Credit Act.

New Mexico Economic Development Department. To apply

for eligibility, contact the Film Division at (505) 476-5600 or

(800) 545-9871. Once approved by the Film Division, the

Completing the Return:

Complete the income tax return, CIT-1, PIT-1, S-Corp or FID-

company may apply for the credit by submitting a completed

1 based on the federal return that you are required to file.

Form RPD-41229, Application for Film Production Tax Credit,

to the Taxation and Revenue Department for verification of

If you are required to file:

File New Mexico Form:

expenses and additional approval. The Department may

Federal Form 1040,

file Form PIT-1;

approve the film production tax credit and issue a document

Federal Form 1120,

file Form CIT-1;

granting all or part of the tax credit. An eligible film production

Federal Form 1120S,

file Form S-Corp; or

company that is required to file a New Mexico Pass-Through

Federal Form 1041,

file Form FID-1

Entity (PTE) return, may apply for a film production tax credit,

but may not claim the credit on the PTE return. The PTE

You will also need to complete the tax credit schedule, PIT-CR,

must pass an approved film production tax credit to its own-

CIT-CR, S-Corp-CR or FID-CR. On the tax credit schedule,

ers, members or partners, using Form RPD-41366, Notice of

enter the total film production tax credit approved and the

amount of the credit that you want applied to the tax liability

Distribution of Film Production Tax Credit.

due on the return. Enter the refundable portion of the tax credit

claimed on the first page of the return, or on Schedule PIT-RC,

Limitations on Claiming the Credit:

The total aggregate film production tax credits that may be

for personal income tax filers. The Department will compare

paid out in any fiscal year are limited to $50 million. A film pro-

the amount entered and determine how and when the credit

duction credit that is unable to receive the tax credit because

will be paid. No interest shall be paid on any amount refunded

claims exceed this limitation shall be placed at the front of the

under the Film Production Tax Credit Act. If the amount you

queue for the next fiscal year.

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

Credit claims authorized for payment may be distributed over

tax liability not paid, and you may be subject to interest on

multiple years as follows:

the unpaid amount.

•

If the credit amount is less than $2 million per taxable year,

the amount shall be paid as requested on the income tax

NOTE: An eligible film production company that is required to

form immediately;

file Federal Form 1065, may be approved for a film production

•

If the credit amount is $2 million or more but less than

tax credit, but may not claim the credit on the New Mexico

$5 million per taxable year, half of the amount of the film

PTE return. The PTE must pass approved film production tax

production tax credit shall be paid immediately and the

credit to its owners, members or partners, using Form RPD-

remainder shall be paid 12 months following the date of

41366, Notice of Distribution of Film Production Tax Credit.

the first payment, and

•

If the credit amount is $5 million or more per taxable year,

For all tax programs, you must attach this Form RPD-41228,

one third of the amount of the film production tax credit

Film Production Tax Credit Claim Form, to your return. Failure

shall be paid immediately, one third of the film produc-

to attach this form may result in denial of your claim for the

tion tax credit shall be paid 12 months following the date

credit.

Form Rpd-41228 - Film Production Tax Credit Claim Form - State Of New Mexico Taxation And Revenue Department Page 2

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