N.M. Stat. Ann. § 7-2F-4 – Reporting; accountability

A. The economic development department shall:
1. (1) collect data to be used in an econometric tool that objectively assesses the effectiveness of the credits provided by the Film Production Tax Credit Act;
2. (2) track the direct expenditures for the credits;
3. (3) with the support and assistance of the legislative finance committee staff and the taxation and revenue department, review and assess the analysis developed in Paragraph (1) of this subsection and create a report for presentation to the revenue stabilization and tax policy committee and the legislative finance committee that provides an objective assessment of the effectiveness of the credits; and
4. (4) report annually to the revenue stabilization and tax policy committee and the legislative finance committee on aggregate approved tax credits made pursuant to the Film Production Tax Credit Act and the past performance of and current outlook for the Film Production Tax Credit Act, including:
  1. (a) the aggregate amount of credits paid subject to the aggregate amount allowed pursuant to Subsection B of Section 7-2F-12 NMSA 1978 in the prior fiscal year and the current amount of claims in the queue pursuant to Subsection C of Section 7-2F-12 NMSA 1978;
  2. (b) the aggregate amount of approved credits paid in the prior fiscal year for expenditures by certain film production companies that are not subject to the aggregate amount of claims allowed pursuant to Section 7-2F-12 NMSA 1978;
  3. (c) the number of applicants receiving the additional credit for television pilots and series pursuant to Section 7-2F-7 NMSA 1978 [repealed];
  4. (d) the number of applicants receiving the additional amount for expenditures made in certain areas of the state pursuant to Section 8 [7-2F-14 NMSA 1978] of this 2019 act;
  5. (e) the aggregate amount of direct production expenditures and post production expenditures in New Mexico during the prior fiscal year, shown by county;
  6. (f) the total number and wages of New Mexico residents employed by film production companies in the prior fiscal year; and
  7. (g) any other relevant information, as determined by the division.
B. The division shall develop a form on which the taxpayer claiming a credit pursuant to the Film Production Tax Credit Act shall submit a report to accompany the taxpayer's application for that credit.
C. With respect to the production on which the application for a credit is based, the film production company shall report to the division at a minimum the following information:
1. (1) the total aggregate wages of the members of the New Mexico resident crew;
2. (2) the number of New Mexico residents employed;
3. (3) the total amount of gross receipts taxes paid;
4. (4) the total number of hours worked by New Mexico residents;
5. (5) the total expenditures made in New Mexico that do not qualify for the credit;
6. (6) the aggregate wages paid to the members of the nonresident crew while working in New Mexico;
7. (7) the aggregate amount of direct production expenditures and postproduction expenditures in New Mexico in the prior fiscal year, shown by county; and
8. (8) other information deemed necessary by the division and economic development department to determine the effectiveness of the credit.
D. For purposes of assessing the effectiveness of a credit, the inability of the economic development department to aggregate data due to sample size shall not relieve the department of the requirement to report all relevant data to the legislature. The division shall provide notice to a film production company applying for a credit that information provided to the division may be revealed by the department in reports to the legislature.

History: Laws 2011, ch. 165, § 5; 2015, ch. 143, § 3; 2016, ch. 77, § 4; 2019, ch. 87, § 5.

ANNOTATIONS

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law. Laws 2025, ch. 130, § 155 repealed 7-2F-7 NMSA 1978 effective July 1, 2025.

The 2019 amendment, effective July 1, 2019, required the economic development department to include in its annual report to the revenue stabilization and tax policy committee and the legislative finance committee certain additional information regarding tax credits made pursuant to the Film Production Tax Credit Act, and required film production companies applying for a tax credit to report to the New Mexico film division information regarding production and postproduction expenditures made in New Mexico; in Subsection A, Paragraph A(4), added "and the past performance of and current outlook for the Film Production Tax Credit Act, including", and added Subparagraphs A(4)(a) through A(4)(g); and in Subsection C, added a new Paragraph C(7) and redesignated former Subparagraph C(7) as Subparagraph C(8).

The 2016 amendment, effective May 18, 2016, in Subsection C, after "With respect to the", deleted "film" and added "production".

The 2015 amendment, effective June 19, 2015, made technical amendments to the reporting requirements in the Film Production Tax Credit Act; in Subsection A, Paragraph (1), after "effectiveness of the", deleted "film production tax credit" and added "credits provided by the film Production Tax Credit Act", in Paragraph (2), after "expenditures for the", deleted "film production tax credit" and added "credits", in Paragraph (3), after "effectiveness of the", deleted "film production tax credit" and added "credits"; in Subsection B, after "taxpayer claiming a", deleted "film production tax"; in the introductory sentence of Subsection C, after "application for a", deleted "film production tax"; in Subsection C, Paragraph (5), after "qualify for the", deleted "film production tax", in Paragraph (7), after "effectiveness of the", deleted "film production tax"; and in Subsection D, after "assessing the effectiveness of", deleted "the film production tax" and added "a", and after "company applying for", deleted "the film production tax".

The film production tax credit does not amount to an unconstitutional gift in violation of the Anti-Donation Clause. — The Film Production Tax Credit Act (act), §§ 7-2F-1 to 7-2F-15 NMSA 1978, creates a film production tax credit that allows an eligible film production company to claim a credit for a percentage of its qualified production and postproduction expenditures made in New Mexico. Under the act, film production companies can only receive the tax credit by complying with specific statutory directives, and, by complying with statutory obligations, film production companies promote economic and workforce development within the state. Thus, in exchange for the tax credit, film production companies assist the state in meeting the express purpose and goals of the act. The plain language of the act, therefore, requires consideration, thus satisfying the strictures of the Anti-Donation Clause. 2026 Op. Att'y Gen. No. 26-06.