1. A. In addition to the percentage of direct production expenditures and postproduction expenditures calculated pursuant to Section 7-2F-13 NMSA 1978, an additional percentage shall be applied for payments for direct production expenditures and postproduction expenditures, as follows:

   1. (1) ten percent for work, services or items provided on location for a production of a film or commercial audiovisual product that is located in New Mexico at least sixty miles from the city hall of the county seat of certain counties; and

   2. (2) five percent for either of the following:

      1. (a) on a standalone pilot intended for series television in New Mexico or on series television productions intended for commercial distribution with an order for at least six episodes in a single season; provided that the New Mexico budget for each of those six episodes is fifty thousand dollars ($50,000) or more; or
      2. (b) on a production in a qualified production facility.
2. B. As used in this section, "certain counties" means class A counties with a net taxable value of property for property taxation purposes of greater than seven billion five hundred million dollars ($7,500,000,000).

History: Laws 2019, ch. 87, § 8; 2023, ch. 211, § 34.

ANNOTATIONS

The 2023 amendment, effective June 16, 2023, increased the percentages to be applied for payments for direct production expenditures and postproduction expenditures, and revised the definition of "certain counties" as used in this section; in Subsection A, in the introductory clause, after "an additional", deleted "five percent" and added "percentage", and after "expenditures", added "as follows", in Paragraph A(1), after the paragraph designation, added "ten percent", after "at least sixty miles", deleted "outside of the exterior boundaries" and added "from the city hall of the county seat", in Paragraph A(2), in the introductory clause, after the paragraph designation, added "five percent"; and in Subsection B, after "certain counties’", deleted "includes" and added "means Class A", after "greater than", deleted "six billion dollars ($6,000,000,000)" and added "seven billion five hundred million dollars ($7,500,000,000)".

Applicability. — Laws 2023, ch. 211, § 43 provided:

A. The provisions of Laws 2023, ch. 211, § 9 apply to taxable years beginning on or after January 1, 2023.

B. The provisions of Laws 2023, ch. 211, §§ 31 through 35 apply to film production companies that commence principal photography for a film or commercial audiovisual product on or after July 1, 2023.