A. film production company may apply for, and the taxation and revenue department may allow, a tax credit in an amount equal to fifteen percent of the payment of wages for below-the-line crew who are not New Mexico residents, that are directly attributable to the production in New Mexico of a film or commercial audiovisual product for which the film production company is claiming a new film production tax credit; provided that:

(1) the service for which payment is made is rendered in New Mexico;

(2) the total eligible wages for below-the-line crew who are not New Mexico residents are:

(a) not more than fifteen percent of the production's total New Mexico budget for below-the-line crew wages; or

(b) as determined by the division, up to twenty percent of the production's total New Mexico budget for below-the-line crew wages; provided that sufficient and qualified below-the-line crew who are New Mexico residents are not available. A film production company that is approved for the additional credit by meeting the requirements of this paragraph shall make a financial or promotional contribution toward educational, media-related nonprofit or workforce development efforts in New Mexico, as determined by the division; and

(3) the film production company makes financial or promotional contributions toward educational or workforce development efforts in New Mexico as determined by the division, including:

(a) a payment to a New Mexico educational institution that administers at least one industry-recognized film or multimedia program, as determined by the division, equal to at least two and one-half percent of the direct production expenditures for the payment of wages, fringe benefits and per diem for nonresident industry crew made by the film production company to nonresident industry crew; or

(b) promotion of the New Mexico film industry by directors, actors or producers affiliated with the film production company's project through: 1) social media that is managed by the state; 2) radio interviews facilitated by the division; 3) enhanced screen credit acknowledgments; or 4) related events that are facilitated, conducted or sponsored by the division.

B. The credit provided by this section may be referred to as the "nonresidential below-the-line crew credit.

History: Laws 2019, ch. 87, § 9.

Effective dates. —Laws 2019, ch. 87, § 12 made Laws 2019, ch. 87, § 9 effective July 1, 2019.

Applicability. — Laws 2019, ch. 87, § 11 provided that:

A. The provisions of Sections 4 [7-2F-2 NMSA 1978] and 7 through 9 [7-2F-13, 7-2F-14, 7-2F-15 NMSA 1978] of this act apply to film production companies that commence principal photography for a film or commercial audiovisual product on or after July 1, 2019.

B. The provisions of Sections 7-2F-2.1 and 7-2F-6 through 7-2F-11 NMSA 1978 shall not apply to a film production company that commences principal photography for a film or commercial audiovisual product on or after July 1, 2019.