N.M. Admin. Code § 3.13.9.8

Current through Register Vol. 36, No. 1, January 14, 2025

Section 3.13.9.8 - CLAIMING THE FILM PRODUCTION TAX CREDIT

A. In order to claim an approved film production tax credit, a film production company must complete a timely filed tax return after the close of its taxable year.

B. When determining how an approved film production tax credit will be paid out pursuant to Subsection E of Section 7-2F-1 NMSA 1978, each tax return is equivalent to a single credit claim.

C. Example 1: Two separate film production companies elect to be part of a New Mexico consolidated tax return. Each film production company submits a separate film production tax credit application for approval of direct production expenditures; one application is for two million dollars ($2,000,000) and the second for one million dollars ($1,000,000). The department approves both applications. The total amount of three million dollars ($3,000,000) from the two approved applications will be considered a single credit claim since the two film production companies elect to file as part of a New Mexico consolidated tax return.

D. Example 2: X, a film production company, is organized as a corporation who files its income taxes on a calendar year basis. For tax year 2012, X will file its corporate income tax return on March 15, 2013, and claim the approved film production tax credit amount from the department. The credit claim will be considered received by the department because the taxpayer filed a complete and timely tax return pursuant to the Corporate Income and Franchise Tax Act.

E. Example 3: A film production company files a complete and timely tax return for a certain tax period. The department does not approve the production company's application for the film production tax credit until after the production company has filed its tax return. The taxpayer ultimately files an amended tax return within three years of the end of the calendar year in which the payment of tax was originally due and at that time, claims the film production tax credit that was previously approved by the department. The credit claim will be considered received because the filing of the amended return by the production company was a complete and timely tax return pursuant to the Corporate Income and Franchise Tax Act.

N.M. Admin. Code § 3.13.9.8

3.13.9.8 NMAC - N, 6/28/13