Bill > SB238

This bill amends existing New Mexico law to expand the film production tax credit to include certain distribution costs. Specifically, it clarifies definitions related to "direct production expenditure," which are costs directly tied to making a film in New Mexico, and introduces a new provision allowing a tax credit of twenty-five percent of distribution costs for film production companies with a physical presence in the state. These distribution costs must be for services performed in New Mexico by New Mexico residents employed in a designated in-house division or department of the film production company, and the credit amount is capped by the credits received for production and post-production expenditures. The bill also specifies that the number of out-of-state films receiving this credit cannot exceed the number of qualified films shot in New Mexico in the same tax year, and these new provisions apply to film productions that begin principal photography on or after July 1, 2016.