Form Rpd-41229 - Application For Film Production Tax Credit (Page 3 of 6) in pdf

STATE OF NEW MEXICO - TAXATION AND REVENUE DEPARTMENT

RPD-41229

Application for Film Production Tax Credit Instructions

Rev. 11/04/2013

Continued

Page 2 of 5

the return, or if the amount of the film production tax credit

You must certify the first statement to be eligible to claim the

exceeds the film production company's income tax liability for

credit for the expenditures reported. If the second statement

the tax year, the excess may be refunded.

does not apply to you, you must provide a copy of the written

agreement between the film production company and the

Limitations on Receiving the Credit Claimed on a Return.

New Mexico Film Office, indicating that both parties agree

Except as provided in the next paragraph, the total aggregate

that the requirement to include the acknowledgement or New

film production tax credits that may be paid out in any fiscal

Mexico state logo in the end screen credits has been waived.

year is limited to $50,000,000. A film production tax credit

claimed that is unable to be paid because total claims paid

Sign the application, enter your title and the date of signature.

during the current fiscal year, exceeded $50,000,000, shall

be placed at the front of the queue for the next fiscal year.

Required Supporting Documentation for Form RPD-

41229. Submit the following documentation to support your

If in fiscal years 2013 through 2015, the aggregate amount

claim:

in each fiscal year of the film production tax credit claims

authorized for payment is less than $50,000,000, then the

•

A copy of the approval from the New Mexico Film Office.

difference in that fiscal year or $10,000,000, whichever is less,

•

A copy of the final cost-accounting summary for the project

shall be added to the aggregate amount of the film production

with a breakout of the New Mexico costs for each line

tax credit claims that may be authorized for payment in the

item.

immediately following fiscal year.

•

The name, address, social security number and amount

If the credit amount claimed by a film company is less than

paid to every resident of New Mexico for whom the com-

$2,000,000 in a tax year, the amount shall be applied or paid

pany wishes to claim credit for wages and salaries.

immediately upon processing of the income tax return.

•

If the company has obtained Type 16 NTTCs from the

For credit claims of $2,000,000 or more in a tax year, the credit

Taxation and Revenue Department, a listing is needed

shall be distributed over multiple years as follows:

of every person to whom the company has delivered an

•

If the credit amount claimed is $2,000,000 or more, but

NTTC. The list must contain the name, address and New

less than $5,000,000 in a tax year, half of the amount of

Mexico CRS identification number, if applicable, and the

the film production tax credit shall be applied or paid im-

dollar amount of purchases.

mediately upon processing of the income tax return and

•

If the amount of the tax credit requested exceeds five million

the remainder shall be paid 12 months following the date

dollars, the application must also include the results of an

of the first payment, and

audit, conducted by a certified public accountant licensed

•

If the credit amount claimed is $5,000,000 or more in a

to practice in New Mexico, verifying that the expenditures

tax year, one third of the amount of the film production tax

have been made in compliance with the requirements of

credit shall be applied or paid immediately upon processing

the Film Production Tax Credit Act.

of the income tax return, one third of the film production

tax credit shall be paid 12 months following the date of

To Claim the Approved Film Production Tax Credit. Once

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

the approved film production company has received approval

credit shall be paid 24 months following the date of the

from the Film Division and the Taxation and Revenue Depart-

first payment.

ment, a completed Form RPD-41228, Film Production Tax

Credit Claim Form, must be attached to a completed New

Any amount of a credit claim that is carried forward as described

Mexico return (Form PIT-1, CIT-1, S-Corp, or FID-1) filed after

above, is also subject to the total aggregate film production

the close of the tax year for authorization for payment. For

tax credit limit of $50,000,000 paid in any fiscal year. However,

qualifying expenditures made after April 15, 2013, the credit

the portion of the amount of credit that is carried forward is

may be claimed by filing the New Mexico PTE, Pass-Through

placed in front of the queue in the next fiscal year. If a partial

Entity Income and Information Return.

payment is made because the tax credit limit has been met in

a fiscal year, then the difference owed shall retain its original

All direct production expenditures and postproduction ex-

position in the queue.

penditures incurred during the tax year by a film production

company shall be submitted as part of the same income tax

For purposes of determining the payment of credit claims that

return. A credit claim shall not be divided and submitted with

are required to be paid out over multiple years, the secretary

multiple returns or in multiple years.

of the Taxation and Revenue Department may require that

credit claims of affiliated persons be combined into one claim,

Subject to certain limitations, the amount of the tax credit

if necessary, to accurately reflect closely integrated activities

authorized for payment may be applied to the tax due on

of affiliated persons.

Form Rpd-41229 - Application For Film Production Tax Credit Page 3

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