by the film industry, a 25% tax credit for all production expenses and labor is given. There is no minimum spend. Should that same individual make a ,000 investment into a qualified production in NM, then the actual net investment will be ,500 since they are given a cash tax credit against the full amount of ,000 spent in the state.
Example of Federal and State Film Incentives Combined
In the previous two examples an individual made an investment of ,000 in a qualified film production. Section 181 allowed a first year deduction against taxes of ,500. Since the production was filmed in New Mexico, the state paid a tax credit to the individual in the amount of ,500. Together, these total ,000. This results in an immediate return on investment of 60% to the individual (k is 605% of k).
Further specifics of Section
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