New Mexico Film & TV Tax Incentives
Incentives: 25-35% refundable tax credit.
Conditions: An additional 5% credit is available for productions that utilize local crew members or shoot in rural areas.
Notable Productions: Breaking Bad, Stranger Things (Season 4).
New Mexico has recently expanded its film and television tax incentive program to strengthen its already booming production industry. A key change in the program is the increase in the annual cap on tax credits, which will rise from $110 million to $160 million by fiscal year 2028. Productions are eligible for a base credit of 25%, with potential uplifts of up to 40% for meeting specific criteria, such as filming in rural areas or utilizing qualified production facilities. An additional 10% uplift is offered to productions filmed outside major cities like Albuquerque and Santa Fe.
The updated legislation, signed into law in April 2023, is designed to sustain the rapid growth of New Mexico's film industry, which saw a record production spend of $855.4 million in the last fiscal year. The revised program also prioritizes local hiring by eliminating the credit cap for resident principal performers while maintaining restrictions on nonresident crew members. This change ensures that local actors and behind-the-scenes talent benefit the most from the expanding industry.
By incentivizing productions to hire locally and film in less urbanized areas, the state is aiming to distribute the economic benefits of its growing film sector more evenly across its regions. The updated tax program continues to position New Mexico as an attractive destination for film and TV projects, contributing to both its economic development and the diversification of its entertainment industry.