New Mexico

New Mexico Film Production Tax Credit

New Mexico remains one of the most important and best-developed production incentive jurisdictions in North America. Beginning July 1, 2023, production companies that meet the requirements of the Film Production Tax Credit Act may apply for a credit on qualified expenditures made in New Mexico, with a base credit amount of 25 percent and a maximum credit amount of 40 percent.

Incentive Rates and Uplifts

• 25% base refundable credit on qualified expenditures
• Additional 5% uplift for qualifying series television and standalone pilots intended for series television
• Additional 5% uplift for use of qualified production facilities
• Additional 10% filming uplift zone credit for qualified expenditures in areas at least 60 miles outside Santa Fe and Albuquerque City Halls
• Maximum: 40% total
• State payout cap: scaling from $110 million (FY2023) to $160 million (FY2028 and beyond)
• Non-resident principal performing artists: $5 million per production cap
• Non-resident below-the-line crew: 15% credit with specific limitations

Program Design

New Mexico's modern system is a layered refundable credit structure tied to production scale, production type, facilities use, and geography. The state's deliberate use of uplifts encourages series production, stage use, and filming beyond the major core hubs. The payout cap is being increased over time, reflecting New Mexico's long-term strategy to remain highly competitive.

Strategic Notes for Producers

New Mexico is best understood as a premier refundable-credit state with unusual depth and flexibility. Its appeal comes not only from the potentially high effective rate, but from its mature infrastructure, recognized production ecosystem, and the state's deliberate use of uplifts. In practice, New Mexico is often treated less as a secondary incentive option and more as a true anchor jurisdiction for features, series, and large-scale studio work.

Frequently Asked Questions

What is the New Mexico film tax credit?

New Mexico offers a 25%-40% tax credit, structured as a Refundable Tax Credit, with an annual program cap of $140M (FY2026). The program is designed to attract film and television productions by offsetting a portion of qualifying local expenditures.

How much is the New Mexico film tax credit?

The New Mexico tax credit is 25%-40%, structured as a Refundable Tax Credit. The exact rate your production qualifies for may depend on factors such as local hiring, filming location, and production type.

What is the minimum spend to qualify for the New Mexico film tax credit?

Productions must meet a minimum spend threshold of None in New Mexico to be eligible. Spend typically includes below-the-line costs incurred within the region, though qualifying criteria vary by program — consult the local film office for the full eligibility rules.

Is there a cap on the New Mexico film tax credit?

Yes. The New Mexico program has a program-wide cap of $140M (FY2026) and a per-project cap of None. Productions should apply early, as allocations can be limited.

How do I apply for the New Mexico film tax credit?

Productions typically apply through the New Mexico film office or the relevant government agency. Applications are generally submitted before principal photography begins, with final certification issued after production is complete and qualified spend is audited. Check the official film office website for current application guidelines, deadlines, and required documentation.