Form Rpd-41229 - Application For Film Production Tax Credit (Page 4 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 3 of 5

NOTE: No interest shall be paid on any amount refunded

The completed income tax return and Form RPD-41228 must

under the Film Production Tax Credit Act.

be mailed to: New Mexico Taxation and Revenue, Attn: Film

Production Tax Credit, P.O. Box 5418, Santa Fe, New Mexico,

Completing the Income Tax Return:

87502-5418. Mailing to this address ensures that your claim

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

is recorded timely.

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

Important Definitions:

If you are required to file:

File New Mexico form:

Federal Form 1040,

PIT-1 return;

"Affiliated person" means a person who directly or indirectly

Federal Form 1041,

FID-1 return;

owns or controls, is owned or controlled by or is under common

Federal Form 1065,

PTE return;

ownership or control with another person through ownership

Federal Form 1120,

CIT-1 return; or

of voting securities or other ownership interests representing

Federal Form 1120S,

S-Corp return

a majority of the total voting power of the entity.

You may also need to complete the tax credit schedule, CIT-CR,

"Commercial audiovisual product" means a film or a video

PIT-CR, S-Corp-CR or FID-CR. Enter the total film production

game intended for commercial exploitation.

tax credit approved and the amount of the credit that you want

applied to the tax liability due on the schedule CR for non-

"Direct production expenditure" means a transaction

refundable credits. For CIT, S-Corp, PTE, and FID returns,

subject to taxation in New Mexico, including:

also enter the refundable portion of the tax credit claimed on

the main return. For PIT, enter the refundable portion of the

1. Payment of wages, fringe benefits or fees for talent, man-

tax credit claimed on Schedule PIT-RC. The Department will

agement or labor to a person who is a New Mexico resident;

compare the amounts entered and determine how and when

2. Payment for services by a performing artist who is not

the credit will be paid. No interest shall be paid on any amount

a New Mexico resident and who is directly employed by the

refunded under the Film Production Tax Credit Act. Caution:

film production company; provided that the film production

If the amount you request to be applied to the tax liability due

company deducts and remits, or causes to be deducted and

on the return is not eligible to be paid immediately, you will

remitted, income tax in New Mexico pursuant to the With-

be billed for the tax liability not paid, and you may be subject

holding Tax Act;

to interest on the unpaid tax due.

3. Payment to a personal services business for the services of

For direct production expenditures made on or after April 15,

a performing artist, if the personal services business (a) pays

2013, an eligible film production company that is required to

gross receipts tax in New Mexico on the portion of those pay-

file Federal Form 1065, may apply for a film production tax

ments qualifying for the tax credit, and (b) the film production

credit, and may claim the credit on the New Mexico PTE return.

company deducts and remits, or causes to be deducted an

remitted, income tax withholding on the portion of those pay-

For direct production expenditures made before April 15,

ments qualifying for the tax credit paid to a personal services

2013, the eligible film production company required to file

business where the performing artist is a full or part owner

Federal Form 1065, may not claim the credit on the New

of that business or subcontracts with a personal services

Mexico PTE return. In this case, the taxpayer filing the Form

business where the performing artist is a full or part owner

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

of that business. The amount of tax withheld is an amount

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

equal to the owner's share of net income multiplied by the

Distribution of Film Production Tax Credit. This form must be

highest rate for single individuals (4.9%); and

completed and attached to Form RPD-41229, Application for

4. Any of the following provided by a vendor:

Film Production Tax Credit, at the time of making application

a. The story and scenario to be used for a film;

for the credit, but no later than the date the credit is approved

by TRD. When completing Form RPD-41366 do not complete

b. Set construction and operations, wardrobe, accessories

the fields marked “to be completed by TRD”. The Department

and related services;

will complete these fields once the film production tax credit is

c. Photography, sound synchronization, lighting and

approved. The amount of tax credit distributed will be based

related services;

on the percentage of claim provided by the film production

company.

d. Editing and related services;

e. Rental of facilities and equipment;

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

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

f. Leasing of vehicles, not including the chartering of

attach this form will result in denial of your claim for the credit.

aircraft for out-of-state transportation (New Mexico-based

chartered aircraft for in-state transportation directly attribut-

Do not mail the return to the address on the income tax return.

Form Rpd-41229 - Application For Film Production Tax Credit Page 4

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