Movie Investment Info - New Mexico Tax Benefits

New Mexico offers many incentives to moviemakers, especially tax deduction on certain production cost. This tax deduction includes:

• Cost of a Script
• Salaries for Talent
• Construction
• Catering
• Wardrobe
• Sound
• Lighting
• Editing
• Location Fees
• Rental of Facilities, Equipment, and Vehicles

Moviemakers / Producers can also obtain NTTC certificates so that the sales tax is not assessed by suppliers.

Enter the New Mexico Movie Investment Program.

New Mexico is also willing to invest or loan money to producers for meeting certain criteria, up to $7,500,000. This money can be invested in a NM film private equity fund or NM film project. The motion picture must be substantially shot in the state, and requires a distribution agreement in place with a reputable company. The film project must also employ mostly state residents as crew (60 percent) and post a completion bond. The amount of the state's equity participation is negotiable depending on how risky the project is. If a loan is given, the state can take an equity investment instead of charging interest.

**Note** New Mexico is not willing to take much risk. First-time producers are not acceptable unless they are affiliated with seasoned producers who are actively involved. The New Mexico Film Investment Program's requirements are not much different from what a bank would require, which means that most low-budget independent film makers will not qualify.