Form Rpd-41228 - Film Production Tax Credit Claim Form (Page 2 of 4) in pdf

State of New Mexico - Taxation and Revenue Department

RPD-41228

Rev. 11/04/2013

FILM PRODUCTION TAX CREDIT CLAIM FORM

Instructions

Page 1 of 3

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

shall be distributed over multiple years as follows:

duction company must first be approved by the Film Division

•

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

of the New Mexico Economic Development Department. After

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

approval, the company may apply for the credit by submitting

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

a completed Form RPD-41229, Application for Film Production

mediately upon processing of the income tax return and

Tax Credit, to the Taxation and Revenue Department (TRD).

the remainder shall be paid 12 months following the date

TRD approves the credit and issues a document granting it.

of the first payment, and

The application must be submitted within one year of the date

of the last direct production or postproduction expenditure in

•

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

New Mexico.

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

credit shall be applied or paid immediately upon processing

To Claim the Approved Film Production Tax Credit. Once

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

the approved film production company has received approval

tax credit shall be paid 12 months following the date of

from the Film Division and the Taxation and Revenue Depart-

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

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

credit shall be paid 24 months following the date of the

Credit Claim Form, must be attached to a completed New

first payment.

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

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

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

qualifying expenditures made after April 15, 2013, the credit

above, is also subject to the total aggregate film production

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

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

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

Entity Income and Information Return.

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

All direct production expenditures and postproduction ex-

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

penditures incurred during the tax year by a film production

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

company shall be submitted as part of the same income tax

position in the queue.

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

For purposes of determining the payment of credit claims that

multiple returns or in multiple years.

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

of the Taxation and Revenue Department may require that

Subject to certain limitations, the amount of the tax credit

credit claims of affiliated persons be combined into one claim,

authorized for payment may be applied to the tax due on

if necessary, to accurately reflect closely integrated activities

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

of affiliated persons.

exceeds the film production company's income tax liability for

NOTE: No interest shall be paid on any amount refunded

the tax year, the excess may be refunded.

under the Film Production Tax Credit Act.

Completing the Income Tax Return:

Limitations on Receiving the Credit Claimed on a Return.

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

Except as provided in the next paragraph, the total aggregate

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

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

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

If you are required to file:

File New Mexico form:

claimed that is unable to be paid because total claims paid

Federal Form 1040,

PIT-1 return;

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

Federal Form 1041,

FID-1 return;

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

Federal Form 1065,

PTE return;

Federal Form 1120,

CIT-1 return; or

If in fiscal years 2013 through 2015, the aggregate amount

Federal Form 1120S,

S-Corp return

in each fiscal year of the film production tax credit claims

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

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

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

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

shall be added to the aggregate amount of the film production

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

tax credit claims that may be authorized for payment in the

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

immediately following fiscal year.

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

also enter the refundable portion of the tax credit claimed on

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

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

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

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

immediately upon processing of the income tax return.

compare the amounts entered and determine how and when

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

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

Form Rpd-41228 - Film Production Tax Credit Claim Form Page 2

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