SB 2 — FILM TAX CREDIT CHANGES

the attorney general, return information SCORC/SB 2 Page 5 acquired pursuant to the Cigarette Tax Act for purposes of Section 6-4-13 NMSA 1978 and the master settlement agreement defined in Section 6-4-12 NMSA 1978;

the secretary of human services or the secretary's delegate under a written agreement with the h department, the last known address with date of all names u » r certified to the department as being absent parents of children t h g e receiving public financial assistance, but only for the purpose l i h r i s of enforcing the support liability of the absent parents by the h , e h child support enforcement division or any successor t u g e b l organizational unit;

e e , gh n d d i = = o h E.

the department of information technology, by l ] b ,d i a º r electronic media, a database updated quarterly that contains ethe rnames, =addresses, tcounty eof waddress dand taxpayer identification numbers of New Mexico personal income tax filers, but only for the names,purpose addresses,of countyproducing the random jury list for the selection of addresspetit andor taxpayergrand mjurors afor nthe ostate dcourts mpursuant :to Section 38-5-3 NMSA 1978;

b r e t º o t n = .214139.9 s k m e - 6 - e a n e d r e l u [ A d identification numbers of New Mexico personal income tax filers, but only for the purpose of producing the random jury list for the selection of petit or grand jurors for the state courts pursuant to Section 38-5-3 NMSA 1978;

SCORC/SB 2 Page 6 G.

h J.

the gaming control board, tax returns of license g o applicants and their affiliates as provided in Subsection E of t hr g e i k Section 60-2E-14 NMSA 1978;

h r i s K.

the director of the workers' compensation h , t, administration or to the director's representatives authorized e u g e b l for this purpose, return information to facilitate the e e h n d d i = = o h identification of taxpayers that are delinquent or noncompliant l ] b ,d i a º e in payment of fees required by Section 52-1-9.1 or 52-5-19 NMSA r i = r t e w d 1978;

mL. a n o d m :

bthe esecretary dof sworkforce ºsolutions oor tthe nsecretary's =delegate, .214139.9return sinformation kfor muse ein -enforcement 7of -unemployment einsurance acollections npursuant eto dthe rterms eof la uwritten [reciprocal Aagreement dentered into by SCORC/SB 2 L.Page 7 the department with the secretary of workforce solutions for exchange of information;

the secretary of workforce solutions or the secretary's delegate, return information for use in enforcement of unemployment insurance collections pursuant to the terms of a written reciprocal agreement entered into by the department with the secretary of workforce solutions for exchange of information;

provided that a person who receives the h confidential return information on behalf of the human services u » r department shall not reveal the information and shall be t h g e subject to the penalties in Section 7-1-76 NMSA 1978 if the l i h r i s person fails to maintain the confidentiality required:

h , e h (1) that return information needed for reports t u g e b l required to be made to the federal government concerning the e e , gh n d d i = = o h use of federal funds for low-income working families;

and l ] b ,d i a º r (2) the names and addresses of low-income e r = t e w d taxpayers for the limited purpose of outreach to those mtaxpayers; a n o d m :

bprovided rthat ethe thuman ºservices odepartment tshall npay =the .214139.9department sfor kexpenses mincurred eby -the department to derive the information requested by the human services SCORC/SB 2 Page 8 -department eif athe ninformation erequested dis rnot ereadily lavailable uin [reports Afor dwhich taxpayers;the department's information systems are programmed;

provided that the human services department shall pay the department for expenses incurred by the department to derive the information requested by the human services department if the information requested is not readily available in reports for which the department's information systems are programmed;

FILM PRODUCTION TAX CREDIT--FILM PRODUCTION h COMPANIES THAT COMMENCE PRINCIPAL PHOTOGRAPHY PRIOR TO JANUARY g o 1, 2016.-- t hr g e i k A.

The tax credit created by this section may be h r i s referred to as the "film production tax credit".

h , t, B.

Except as otherwise provided in this section, an e u g e b l eligible film production company may apply for, and the e e h n d d i = = o h taxation and revenue department may allow, subject to the l ] b ,d i a º e limitation in this section, a tax credit in an amount equal to r i = r t e w d twenty-five percent of:

mSCORC/SB a2 nPage o9 d(1) mdirect :production expenditures made in New Mexico that:

b e d s º o t n = .214139.9 s k m e - 9 - e a n e d r e l u [ A d SCORC/SB 2 (1) direct production expenditures made in New Mexico that:

The secretary of taxation and revenue may determine the value of the goods or services for purposes of this section when the buyer and seller are affiliated persons or the sale or purchase is not an arm's length h transaction;

and g o (2) postproduction expenditures made in t hr g e i k New Mexico that:

h r i s (a) are directly attributable to the h , t, production of a commercial film or audiovisual product;

e u g e b l e e h (b) are for services performed in New n d d i = = o h Mexico;

l ] b ,d i a º e (c) are subject to taxation by the state r i = r t e w d of New Mexico;

mSCORC/SB a2 nPage o10 d(d) mexclude :postproduction expenditures for which another taxpayer claims the film production tax credit;

b e d s º o t n = .214139.9 s k m e - 10 - e a n e d r e l u [ A d (d) exclude postproduction expenditures for which another taxpayer claims the film production tax credit;

provided that the New Mexico budget for each of those six episodes is fifty thousand dollars h ($50,000) or more;

or g o (2) on a production with a total New Mexico t hr g e i k budget of the following amounts;

provided that the expenditures h r i s are directly attributable and paid to a New Mexico resident who h , t, is hired as industry crew, or who is hired as a producer, e u g e b l writer or director working directly with theSCORC/SB physical2 ePage e11 hthe nphysical d d i = = o h production and has filed a New Mexico income tax return as a l ] b ,d i a º e resident in the two previous taxable years:

r(a) inot =more rthan tthirty emillion wdollars d($30,000,000) (a)that notshoots moreat thanleast thirtyten millionprincipal dollarsphotography mdays ain nNew oMexico dat ma :qualified production facility;

b e d s º o t n = .214139.9 s k m e - 11 - e a n e d r e l u [ A d SCORC/SB 2 ($30,000,000) that shoots at least ten principal photography days in New Mexico at a qualified production facility;

1) shoot at least ten of those days at a sound stage that is a qualified production facility and the h remaining number of required days, if any, at a standing set u » r that is a qualified production facility;

and 2) for each day of t h g e the fifteen days, include industry crew working on the premises l i h r i s of the facility for a minimum of eight hours within a twenty-twenty-four-hour h , e h four-hour period.

tSCORC/SB u2 gPage e12 b l D.

With respect to expenditures attributable to a e e , gh n d d i = = o h production for which the film production company receives a tax l ] b ,d i a º r credit pursuant to the federal new markets tax credit program, e r = t e w d the percentage to be applied in calculating the film production mtax acredit nis otwenty dpercent. m :

b r e t º o t n = .214139.9 s k m e - 12 - e a n e d r e l u [ A d tax credit is twenty percent.

A claim for film production tax credits shall be filed as part of a return filed pursuant to the Income Tax Act or the Corporate Income and Franchise Tax ActAct. [or an information return filed by a pass-through entity].

[ExceptF. as otherwise provided in this section, the aggregate amount of claims for a credit provided by the Film Production Tax Credit Act that may be authorized for payment in any fiscal year is fifty million dollars ($50,000,000) with respect to the direct production expenditures or postproduction expenditures made on film or commercial audiovisual products.

AExcept filmas productionotherwise companyprovided thatin submitsthis asection claimand forSection a10 filmof productionthis tax2019 creditact, that is unable to receive the tax credit because the claims authorized for thepayment fiscalpursuant yearto exceed the limitationFilm inProduction thisTax subsectionCredit Act shall be placedpaid forpursuant theto subsequentprovisions fiscal year at the front of a queue of credit claimants submitting claims in the subsequentTax fiscalAdministration hAct yearto in the ordertaxpayer ofas thefollows: date on which the credit was g o authorized for payment.

t hr g e i k F.

If, in fiscal years 2013 through 2015, the h r i s aggregate amount in each fiscal year of the film production tax h , t, credit claims authorized for payment is less than fifty million e u g e b l dollars ($50,000,000), then the difference in that fiscal year e e h n d d i = = o h or ten million dollars ($10,000,000), whichever is less, shall l ] b ,d i a º e be added to the aggregate amount of the film production tax r i = r t e w d credit claims that may be authorized for payment pursuant to m a n o d m :

b e d s º o t n = .214139.9 s k m e - 13 - e a n e d r e l u [ A d SCORC/SB 2 Subsection E of this section in the immediately following fiscal year.

G.] F.

Except as otherwise provided in this section and Section 10 of this 2019 act , credit claims authorized for payment pursuant to the Film Production Tax Credit Act shall be paid pursuant to provisions of the Tax Administration Act to the taxpayer as follows:

(2) a credit claim amount of two million dollars ($2,000,000) or more but less than five million dollars ($5,000,000) per taxable year shall be divided into two equal payments, with the first payment to be made immediately upon authorization of the payment of the credit SCORC/SB 2 Page 13 claim and the second payment to be made twelve months following the date of the h first payment;

and u » r (3) a credit claim amount of five million t h g e dollars ($5,000,000) or more per taxable year shall be divided l i h r i s into three equal payments, with the first payment to be made h , e h immediately upon authorization of payment of the credit claim, t u g e b l the second payment to be made twelve months following the date e e , gh n d d i = = o h of the first payment and the third payment to be made twenty-twenty-four l ] b ,d i a º r four months following the date of the first payment.

e r = t e w d [H.] G.

For a fiscal year in which the amount of mtotal credit claims authorized for payment is less than the aggregate amount of credit claims that may be authorized for payment pursuant to Section 7-2F-12 NMSA 1978, the next scheduled payments for credit claims authorized for payment pursuant to Subsection F of this section shall be accelerated for payment for that fiscal year and shall be paid to a ntaxpayer opursuant dto mthe :Tax Administration Act and in the order in which outstanding payments are scheduled in the queue established pursuant to Section 7-2F-12 NMSA 1978;

b r e t º o t n = .214139.9 s k m e - 14 - e a n e d r e l u [ A d total credit claims authorized for payment is less than the aggregate amount of credit claims that may be authorized for payment pursuant to [this ] Section 7-2F-12 NMSA 1978, the next scheduled payments for credit claims authorized for payment pursuant to Subsection [G ] F of this section shall be accelerated for payment for that fiscal year and shall be paid to a taxpayer pursuant to the Tax Administration Act and in the order in which outstanding payments are scheduled in the queue established pursuant to [Subsections E and G of this section ] Section 7-2F-12 NMSA 1978 ;

If a partial payment is made pursuant to this subsection, the difference owed shall retain its original position in the SCORC/SB 2 Page 14 queue.

[I.H.

]Any H.amount of a credit claim that is carried forward pursuant to Subsection F of this section shall be subject to the limit on the aggregate amount of credit claims that may be authorized for payment pursuant to Section 7-2F-12 NMSA 1978.

AnyI. amount of a credit claim that is carried forward pursuant to Subsection [G ] F of this section shall be subject to the limit on the aggregate amount of credit claims that may be authorized for payment pursuant to h [Subsections E and F of this section in the fiscal year in g o which that amount is paid] Section 7-2F-12 NMSA 1978.

tA hrcredit gclaim eshall ionly kbe [J.considered received by the taxation and revenue department if the credit claim is made on a complete return filed after the close of the taxable year.

]All I.direct production expenditures and postproduction expenditures incurred during the taxable year by a film production company shall be submitted as part of the same income tax return and paid pursuant to this section.

A credit claim shall onlynot be considereddivided h r i s received by the taxation and revenuesubmitted departmentwith ifmultiple thereturns creditor hin ,multiple t,years. claim is made on a complete return filed after the close of the e u g e b l taxable year.

AllJ. direct production expenditures and e e h n d d i = = o h postproduction expenditures incurred during the taxable year by l ] b ,d i a º e a film production company shall be submitted as part of the r i = r t e w d same income tax return and paid pursuant to this section.

A m a n o d m :

b e d s º o t n = .214139.9 s k m e - 15 - e a n e d r e l u [ A d SCORC/SB 2 credit claim shall not be divided and submitted with multiple returns or in multiple years.

[K.] J.

[L.] K.

The film production tax credit shall not be claimed with respect to direct production expenditures or postproduction expenditures for which the film production company has delivered a nontaxable transaction certificate SCORC/SB 2 Page 15 pursuant to Section 7-9-86 NMSA 1978.

[M.] L.

A production for which the film production tax credit is claimed pursuant to Paragraph (1) of Subsection B of this section shall contain an acknowledgment to the state of h New Mexico in the end screen credits that the production was g o filmed in New Mexico, and a state logo provided by the division t hr g e i k shall be included and embedded in the end screen credits of h r i s long-form narrative film productions and television episodes, h , t, unless otherwise agreed upon in writing by the film production e u g e b l e e h company and the division.

n d d i = = o h [N.] M.

To be eligible for the film production tax l ] b ,d i a º e credit, a film production company shall submit to the division rinformation irequired =by rthe tdivision eto wdemonstrate dconformity informationwith requiredthe byrequirements of the divisionFilm toProduction demonstrateTax conformityCredit mAct, aincluding ndetailed oinformation don meach :direct production expenditure and each postproduction expenditure.

b e d s º o t n = .214139.9 s k m e - 16 - e a n e d r e l u [ A d with the requirements of the Film Production Tax Credit Act, including detailed information on each direct production expenditure and each postproduction expenditure.

SCORC/SB 2 Page 16 (1) to pay all obligations the film production company has incurred in New Mexico;

(2) to post a notice at completion of principal photography on the [web site ] website of the division that:

(a) contains production company information, including the name of the production, the address of the production company and contact information that includes h a working phone number, fax number and email address for both g o the local production office and the permanent production office t hr g e i k to notify the public of the need to file creditor claims h r i s against the film production company;

and h , t, (b) remains posted on the [web site ] e u g e b l website until all financial obligations incurred in the state e e h n d d i = = o h by the film production company have been paid;

l ] b ,d i a º e (3) that outstanding obligations are not r i = r t e w d waived should a creditor fail to file;

m(4) to delay filing of a nclaim ofor dthe mfilm :production tax credit until the division delivers written notification to the taxation and revenue department that the film production company has fulfilled all requirements for the credit;

band e(5) dto ssubmit ºa ocompleted tapplication nfor =the .214139.9film sproduction ktax mcredit eand -supporting 17documentation -to ethe adivision nwithin eone dyear rof emaking lthe ufinal [ A d SCORC/SB 2 (4)Page to17 delayexpenditures filingin ofNew aMexico claimthat forwere theincurred filmfor production tax credit until the divisionregistered deliversproject written notification to the taxation and revenue department that theare filmincluded productionin company has fulfilled all requirements for the credit;credit claim.

andN. (5) to submit a completed application for the film production tax credit and supporting documentation to the division within one year of making the final expenditures in New Mexico that were incurred for the registered project and that are included in the credit claim.

[O.] N.

The division shall also post on its [web site ] website all information provided by the h film production company that does not reveal revenue, income or g o other information that may jeopardize the confidentiality of t hr g e i k income tax returns, including that the division shall report h r i s quarterly the projected amount of credit claims for the fiscal h , t, year.

e u g e b l e e h [P.] O.

To provide guidance to film production n d d i = = o h companies regarding the amount of credit capacity remaining in l ] b ,d i a º e the fiscal year, the taxation and revenue department shall post r i = r t e w d monthly on that department's [web site ] website the aggregate mamount aof ncredits oclaimed dand mprocessed :for the fiscal year.

bP. e d s º o t n = .214139.9 s k m e - 18 - e a n e d r e l u [ A d amount of credits claimed and processed for the fiscal year.

[Q.

] P.

The application shall include a certification of the amount of direct production expenditures or postproduction expenditures made in New Mexico with respect to the film production for which the film production company SCORC/SB 2 Page 18 is seeking the film production tax credit;

If the requirements of this section have been complied with, [subject h to the provisions of Subsection E of this section,] the g o taxation and revenue department shall approve the film t hr g e i k production tax credit and issue a document granting the tax h r i s credit.

hQ. , t, [R.

]The Q.film production company may apply all or a portion of the film production tax credit granted against personal income tax liability or corporate income tax liability.

TheIf filmthe productionamount company may apply all e u g e b l or a portion of the film production tax credit grantedclaimed againstexceeds ethe efilm hproduction ncompany's dtax dliability ifor =the =taxable oyear hin personalwhich incomethe taxcredit liabilityis orbeing corporateclaimed, incomethe taxexcess lshall ]be brefunded. ,d i a º e liability.

IfR. the amount of the film production tax credit r i = r t e w d claimed exceeds the film production company's tax liability for m a n o d m :

bThat eamount dof sa ºfilm oproduction ttax ncredit =for .214139.9total spayments kas mapplied eto -direct 19production -expenditures efor athe nservices eof dperforming rartists eshall lnot uexceed [five Amillion ddollars ($5,000,000) for services rendered by SCORC/SB 2 thePage taxable19 yearnonresident inperforming whichartists theand creditfeatured isresident beingprincipal claimed,performing theartists excessin shalla beproduction. refunded.

[S.] R.

That amount of a film production tax credit for total payments as applied to direct production expenditures for the services of performing artists shall not exceed five million dollars ($5,000,000) for services rendered by nonresident performing artists and featured resident principal performing artists in a production.

[T.] S.

As used in this section, "direct production expenditure" [(1) except as provided in Paragraph (2) of this subsection] means a transaction that is subject to taxation in New Mexico:

h (1) including an expenditure for:

g o (a) payment of wages, fringe benefits or t hr g e i k fees for talent, management or labor to a person who is a New h r i s Mexico resident;

h , t, (b) payment for wages and per diem for a e u g e b l e e h performing artist who is not a New Mexico resident and who is n d d i = = o h directly employed by the film production company;

provided that l ] b ,d i a º e the film production company deducts and remits, or causes to be r i = r t e w d deducted and remitted, income tax from the first day of mservices arendered nin oNew dMexico mat :the maximum rate pursuant to the Withholding Tax Act;

b e d s º o t n = .214139.9 s k m e - 20 - e a n e d r e l u [ A d services rendered in New Mexico at the maximum rate pursuant to the Withholding Tax Act;

and 2) the film production company deducts and remits, or causes to be deducted and remitted, income tax at SCORC/SB 2 Page 20 the maximum rate in New Mexico pursuant to Subsection H of Section 7-3A-3 NMSA 1978 on the portion of those payments qualifying for the tax credit paid to a personal services business where the performing artist is a full or part owner of that business or subcontracts with a personal services business where the performing artist is a full or part owner of that business;

h 5) rental of facilities and equipment;

6) leasing of vehicles, u » r not including the chartering of aircraft for out-of-state t h g e transportation;

however, New Mexico-based chartered aircraft l i h r i s for in-state transportation directly attributable to the h , e h production shall be considered a direct production expenditure;

t u g e b l provided that only the first one hundred dollars ($100) of the e e , gh n d d i = = o h daily expense of leasing a vehicle for passenger transportation l ] b ,d i a º r on roadways in the state may be claimed as a direct production e r = t e w d expenditure;

provided that only the first mone ahundred nfifty odollars d($150) mof :lodging per individual per day is eligible to be claimed as a direct production expenditure;

b8) rcommercial eairfare tif ºpurchased othrough ta nNew =Mexico-based .214139.9SCORC/SB s2 kPage m e - 21 -travel eagency aor ntravel ecompany dfor rtravel eto land ufrom [New AMexico dor SCORC/SBwithin 2New oneMexico hundredthat fifty dollars ($150) of lodging per individual per day is eligibledirectly attributable to bethe claimedproduction; as a direct production expenditure;

8) commercial airfare if purchased through a New Mexico-based travel agency or travel company for travel to and from New Mexico or within New Mexico that is directly attributable to the production;

h (b) artwork or jewelry, except that a u » r work of art or a piece of jewelry may be a direct production t h g e expenditure if:

and 2) l i h r i s the expenditure is less than two thousand five hundred dollars h , e h ($2,500);

t u g e b l (c) entertainment, amusement or e e , gh n d d i = = o h recreation;

l ] b ,d i a º r (d) subcontracted goods or services e r = t e w d provided by a vendor when subcontractors are not subject to mstate ataxation, nsuch oas dequipment mand :locations provided by the military, government and religious organizations;

bor r(e) ea tservice ºprovided oby ta nperson =who .214139.9SCORC/SB s2 kPage m22 eis -not 22a -New eMexico resident and employed in an industry crew position, excluding a nperforming eartist, dwhere rit eis lthe ustandard [entertainment Aindustry dpractice statefor taxation,the suchfilm asproduction equipmentcompany andto locationsemploy provideda byperson for that industry crew 5 position, except when the military,person governmentwho andis religiousnot organizations;a New Mexico resident is hired or subcontracted by a vendor;

or (e) a service provided by a person who is not a New Mexico resident and employed in an industry crew position, excluding a performing artist, where it is the standard entertainment industry practice for the film production company to employ a person for that industry crew position, except when the person who is not a New Mexico resident is hired or subcontracted by a vendor;

and 2) financial or promotional contributions toward education or [work force ] workforce development efforts in New Mexico, including at least one of the following:

a payment to a New Mexico public education institution that administers at least one industry-industry-recognized recognized film or multimedia program, as determined by the division, in an amount equal to two and one-half percent of payments made to nonresidents in approved positions employed by h the vendor;

promotion of the New Mexico film industry by g o directors, actors or executive producers affiliated with the t hr g e i k production company's project through social media that is h r i s managed by the state;

radio interviews facilitated by the h , t, division;

or related e u g e b l events that are facilitated, conducted or sponsored by the e e h n d d i = = o h division.

l ] b ,d i a º e [U.] T.

As used in this section, "film production r i = r t e w d company" means a person that produces one or more films or any mpart of a nfilm oand dthat mcommences :principal photography SCORC/SB 2 Page 23 prior to January 1, 2016.

bU. e d s º o t n = .214139.9 s k m e - 23 - e a n e d r e l u [ A d SCORC/SB 2 part of a film and that commences principal photography prior to January 1, 2016.

[V.As used in this section, "vendor" means a person who sells or leases goods or services that are related to standard industry craft inventory, who has a physical 5 presence in New Mexico and is subject to gross receipts tax pursuant to the Gross Receipts and Compensating Tax Act and income tax pursuant to the Income Tax Act or corporate income tax pursuant to the Corporate Income and Franchise Tax Act but excludes a personal services business and services provided by nonresidents hired or subcontracted if the tasks and responsibilities are associated with:

] U.

As used in this section, "vendor" means a person who sells or leases goods or services that are related to standard industry craft inventory, who has a physical presence in New Mexico and is subject to gross receipts tax pursuant to the Gross Receipts and Compensating Tax Act and income tax pursuant to the Income Tax Act or corporate income tax pursuant to the Corporate Income and Franchise Tax Act but excludes a personal services business and services provided by nonresidents hired or subcontracted if the tasks and responsibilities are associated with:

h (d) an associate producer;

g o (e) a co-producer;

t hr g e i k (f) an executive producer;

h r i s (g) a production supervisor;

h , t, (h) a director of photography;

e u g e b l e e h (i) a motion picture driver whose sole n d d i = = o h responsibility is driving;

l ] b ,d i a º e (j) a production or personal assistant;

r i = r t e w d (k) a designer;

m(l) a nstill ophotographer; d m :

bor eSCORC/SB d2 sPage º o t n = .214139.9 s k m e - 24 -(m) e a ncarpenter eand dutility rtechnician eat lan uentry [level; A d (l) a still photographer;

orand (m)(2) anonstandard carpenterindustry job positions and utilitypersonal techniciansupport atservices." an5 entrySECTION level;4.

and (2) nonstandard industry job positions and personal support services." SECTION 4.

or a person of h atmospheric business whose work includes special abilities that g o are not stunts;

or a substitute for another actor, whether t hr g e i k photographed as a double or acting as a stand-in;

h r i s C.

"below-the-line crew" means a person in a h , t, position that is off-camera and who provides technical services e u g e b l during the physical production of a film.

"Below-the-lineSCORC/SB e2 ePage h25 n"Below-the-line d d i = = o h crew" does not include a person who is a writer, director, l ] b ,d i a º e producer or background artist or performing artist for the r i = r t e w d film;

mD. a n o d m :

b"commercial eaudiovisual dproduct" smeans ºa ofilm t5 nor = .214139.9 s k m e - 25 - e a nvideo egame dintended rfor ecommercial lexploitation; u [ A d SCORC/SB 2 [C.

] D.

"commercial audiovisual product" means a film or a [videogame ] video game intended for commercial exploitation;

(c) payment for wages and per diem for a performing artist who is not a New Mexico resident and who is h directly employed by the film production company;

provided that g o the film production company deducts and remits, or causes to be t hr g e i k deducted and remitted, income tax from the first day of h r i s services rendered in New Mexico at the maximum rate pursuant to h , t, the Withholding Tax Act;

e u g e b l e e h (d) payment to a personal services n d d i = = o h business for the services of a performing artist if:

1) the lSCORC/SB ]2 bPage ,d26 i a º e personal services business pays gross receipts tax in New r i = r t e w d Mexico on the portion of those payments qualifying for the tax mcredit; a n o d m :

band e2) dthe sfilm ºproduction ocompany tdeducts nand =remits, .214139.9or scauses kto mbe ededucted -and 26remitted, -income etax 5 at the maximum rate in New Mexico pursuant to Subsection H of Section 7-3A-3 NMSA 1978 on the portion of those payments qualifying for the tax credit paid to a npersonal eservices dbusiness rwhere ethe lperforming uartist [is Aa dfull credit;or part owner of that business or subcontracts with a personal services business where the performing artist is a full or part owner of that business;

and 2) the film production company deducts and remits, or causes to be deducted and remitted, income tax at the maximum rate in New Mexico pursuant to Subsection H of Section 7-3A-3 NMSA 1978 on the portion of those payments qualifying for the tax credit paid to a personal services business where the performing artist is a full or part owner of that business or subcontracts with a personal services business where the performing artist is a full or part owner of that business;

however, New Mexico-based chartered aircraft for in-state transportation directly attributable to the production shall be considered a direct h production expenditure;

8) the first three hundred u » r dollars ($300) of lodging per individual, per day;

9) t h g e commercial airfare if purchased through a New Mexico-based lSCORC/SB i2 hPage r27 i s travel agency or travel company for travel to and from New h , e h Mexico or within New Mexico that is directly attributable to t u g e b l the production;

10) insurance coverage and bonding if purchased e e , gh n d d i = = o h through a New Mexico-based insurance agent, broker 5 or bonding l ] b ,d i a º r agent;

e r = t e w d provided that the ordinary course of business of the vendor mprocuring athe ngoods oand dservices mfrom :the subcontractor directly relates to standard film industry goods and services;

b r e t º o t n = .214139.9 s k m e - 27 - e a n e d r e l u [ A d SCORC/SB 2 procuring the goods and services from the subcontractor directly relates to standard film industry goods and services;

(d) subcontracted goods or services provided by a vendor when the subcontractors providing those h goods or services to the vendor are not subject to state u » r taxation, such as equipment and locations provided by the tSCORC/SB h2 gPage e28 military, government and organizations that demonstrate to the l i h r i s taxation and revenue department that they have been granted h , e h exemption from the federal income tax by the United States t u g e b l commissioner of internal revenue as organizations 5 described in e e , gh n d d i = = o h Section 501(c)(3) of the United States Internal Revenue Code of l ] b ,d i a º r 1986, as amended or renumbered;

e(e) rsubcontracted =services tprovided eby wa dvendor (e)when the subcontracted services are provided by a mperson awho nis obelow-the-line dcrew mand :is not a New Mexico resident;

b r e t º o t n = .214139.9 s k m e - 28 - e a n e d r e l u [ A d vendor when the subcontracted services are provided by a person who is below-the-line crew and is not a New Mexico resident;

or (h) which the film production company SCORC/SB 2 Page 29 receives funding pursuant to Section 21-19-7.1 NMSA 1978;

[D.] F.

[E.G.

]"federal G.new markets tax credit program" means 5 the tax credit program codified as Section 45D of the United States Internal Revenue Code of 1986, as amended;

"federalH. new markets tax credit program" h means the tax credit program codified as Section 45D of the g o United States Internal Revenue Code of 1986, as amended;

t"film" hrmeans ga esingle imedium kor [F.multimedia program, including television programs but excluding advertising messages other than national or regional advertising messages intended for exhibition, that:

](1) H.is fixed on film, a digital medium, videotape, computer disc, laser disc or other similar delivery medium;

"film"(2) meanscan abe singleviewed medium or multimediareproduced; h r i s program, including television programs but excluding h , t, advertising messages other than national or regional e u g e b l advertising messages intended for exhibition, that:

e e h n d d i = = o h (1) is fixed on film, a digital medium, l ] b ,d i a º e videotape, computer disc, laser disc or other similar delivery r i = r t e w d medium;

m a n o d m :

b e d s º o t n = .214139.9 s k m e - 29 - e a n e d r e l u [ A d SCORC/SB 2 (2) can be viewed or reproduced;

[G.] J.

[H.K.

"industry"New crew"Mexico resident" means aan personindividual who is domiciled in athis positionstate thatduring isany off-camerapart andof the taxable SCORC/SB 2 Page 30 year or an individual who providesis technicalphysically servicespresent duringin thethis physicalstate productionfor ofone ahundred film.eighty-five days or more during the taxable year;

"Industrybut crew"any doesindividual, notother includethan asomeone writer,who director,was producer,physically backgroundpresent artistin the state for one hundred eighty-five 5 days or performingmore artist;during the taxable year and who, on or before the last day of the taxable year, changed the individual's place of abode to a place without this state with the bona fide intention of continuing actually to abide permanently without this state is not a resident for the purposes of the Film Production Tax Credit Act for periods after that change of abode;

I.]L. K.

"New Mexico resident" means an individual h who is domiciled in this state during any part of the taxable g o year or an individual who is physically present in this state t hr g e i k for one hundred eighty-five days or more during the taxable h r i s year;

but any individual, other than someone who was physically h , t, present in the state for one hundred eighty-five days or more e u g e b l e e h during the taxable year and who, on or before the last day of n d d i = = o h the taxable year, changed the individual's place of abode to a l ] b ,d i a º e place without this state with the bona fide intention of r i = r t e w d continuing actually to abide permanently without this state is m a n o d m :

b e d s º o t n = .214139.9 s k m e - 30 - e a n e d r e l u [ A d not a resident for the purposes of the Film Production Tax Credit Act for periods after that change of abode;

[J.

] L.

[K.M.

] M.

[L.N.

]"physical N.presence" means a physical address in New Mexico from which a vendor conducts business, stores inventory or otherwise creates, assembles or offers for sale the product purchased or leased by a film production company SCORC/SB 2 Page 31 and the vendor or an employee of the vendor is a resident;

"physicalO. presence" means a physical address in New Mexico from which a vendor conducts business, stores inventory or otherwise creates, assembles or offers for sale the product purchased or leased by a film production company and the [business owner ] vendor or an employee of the [business] vendor is a resident;

[M."postproduction expenditure" means an expenditure, certified pursuant to Subsection A of Section 7-2F-12 NMSA 1978, for editing, Foley recording, automatic 5 dialogue replacement, sound editing, special effects, including computer-generated imagery or other effects, scoring and music editing, beginning and end credits, negative cutting, soundtrack production, dubbing, subtitling or addition of sound or visual effects;

]but O.not including an expenditure for advertising, marketing, distribution or expense payments;

"postproductionP. expenditure" means an h expenditure, certified pursuant to Subsection A of Section g o 7-2F-12 NMSA 1978, for editing, Foley recording, automatic t hr g e i k dialogue replacement, sound editing, special effects, including h r i s computer-generated imagery or other effects, scoring and music h , t, editing, beginning and end credits, negative cutting, e u g e b l soundtrack production, dubbing, subtitling or addition of sound e e h n d d i = = o h or visual effects;

but"principal notphotography" includingmeans anthe expenditureproduction forof l ] b ,d i a ºfilm eduring advertising,which marketing,the distributionmain orvisual expenseelements payments;are created;

rQ. i = r t e w d [N.

] P.

"principal photography" means the m a n o d m :

b e d s º o t n = .214139.9 s k m e - 31 - e a n e d r e l u [ A d SCORC/SB 2 production of a film during which the main visual elements are created;

[and O.] Q.

(1) sound stage with contiguous [clear-span ] floor space of at least seven thousand square feet and a ceiling height of no less than [twenty-one ] eighteen feet;

or (2) standing set that includes at least one interior, and at least five exteriors, built or re-purposed for film production use on a continual basis and is located on at least fifty acres of contiguous space designated for SCORC/SB 2 Page 32 film production use;

"vendor" means a person who sells or leases h goods or services that are related to standard industry craft u » r inventory, who has a physical presence in New Mexico and is t5 h g e subject to gross receipts tax pursuant to the Gross Receipts l i h r i s and Compensating Tax Act or income tax pursuant to the Income h , e h Tax Act or corporate income tax pursuant to the Corporate t u g e b l Income and Franchise Tax Act but excludes a personal services e e , gh n d d i = = o h business and services provided by nonresidents hired or l ] b ,d i a º r subcontracted if the tasks and responsibilities are associated e r = t e w d with the standard industry job position of director, writer or mproducer." aSECTION n5. o d m :

b r e t º o t n = .214139.9 s k m e - 32 - e a n e d r e l u [ A d producer." SECTION 5.

(3) with the support and assistance of the legislative finance committee staff and the taxation and revenue department, review and assess the analysis developed SCORC/SB 2 Page 33 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;

5 and (4) report annually to the revenue h stabilization and tax policy committee and the legislative g o finance committee on aggregate approved tax credits made t hr g e i k pursuant to the Film Production Tax Credit Act and the past h r i s performance of and current outlook for the Film Production Tax h , t, Credit Act, including:

e u g e b l (a) the aggregate amount of credits paid e e h n d d i = = o h subject to the aggregate amount allowed pursuant to Subsection l ] b ,d i a º e B of Section 7-2F-12 NMSA 1978 in the prior fiscal year and the r i = r t e w d current amount of claims in the queue pursuant to Subsection C mof aSection n7-2F-12 oNMSA d1978; m :

b e d s º o t n = .214139.9 s k m e - 33 - e a n e d r e l u [ A d SCORC/SB 2 of Section 7-2F-12 NMSA 1978;

(d) the number of applicants receiving SFCºtheSCORC/SB additional2 creditPage for34 direct production expenditures made in certain areas of the state pursuant to Section 9 of this the additional amount for expenditures made in certain areas of the state pursuant to Section 8 of this»SFCthis 2019 act;

(e) the aggregate amount of direct production expenditures and post production expenditures in New5 hNew Mexico during the prior fiscal year, shown by county;

g o t hr (f) the total number and wages of New g e i k Mexico residents employed by film production companies in the h r i s prior fiscal year;

and h , t, (g) any other relevant information, as e u g e b l e e h determined by the division.

n d d i = = o h B.

The division shall develop a form on which the l ] b ,d i a º e taxpayer claiming a credit pursuant to the Film Production Tax r i = r t e w d m a n o Credit Act shall submit a report to accompany the taxpayer's dapplication mfor :that credit.

b e d s º o t n = .214139.9 s k m e - 34 - e a n e d r e l u [ A d application for that credit.

(4) the total number of hours worked by SCORC/SB 2 Page 35 New Mexico residents;

(6) the aggregate wages paid to the members 5 of the nonresident crew while working in New Mexico;

[and ] (7) the aggregate amount of direct production expenditures and postproduction expenditures in New Mexico in h the prior fiscal year, shown by county;

and g o [(7)] (8) other information deemed necessary t hr g e i k by the division and economic development department to h r i s determine the effectiveness of the credit.

h , t, D.

For purposes of assessing the effectiveness of a e u g e b l credit, the inability of the economic development department to e e h n d d i = = o h aggregate data due to sample size shall not relieve the l ] b ,d i a º e department of the requirement to report all relevant data to r i = r t e w d the legislature.

The division shall provide notice to a film mproduction company applying for a ncredit othat dinformation mprovided :to the division may be revealed by the department in reports to the legislature." SECTION 6.

b e d s º o t n = .214139.9 s k m e - 35 - e a n e d r e l u [ A d SCORC/SB 2 production company applying for a credit that information provided to the division may be revealed by the department in reports to the legislature." SECTION 6.

[NEW MATERIAL ] CREDIT CLAIMS--CERTIFICATION OF DIRECT PRODUCTION AND POSTPRODUCTION EXPENDITURES--AGGREGATE AMOUNT OF CLAIMS ALLOWED--EXCEPTION.-- SCORC/SB 2 Page 36 A.

provided that the division is prohibited 5 from certifying a film production company's budget if the total expected claims in excess of the aggregate amount of claims that may be authorized for payment pursuant to Subsection B of h this section would exceed one hundred million dollars u » r ($100,000,000) in any fiscal yearyear; SFCº ;

and provided further t h g e that the limitation in this subsection shall not apply to l i h r i s certification of a budget for a New Mexico film partnerpartner. »SFC.

h , e h B.

Except as provided in Section 10 of this 2019 t u g e b l e e , gh act, the aggregate amount of claims for a credit provided by n d d i = = o h the Film Production Tax Credit Act that may be authorized for l ] b ,d i a º r payment in any fiscal year is one hundred ten million dollars e r = t e w d ($110,000,000) with respect to the direct production mexpenditures aor npostproduction oexpenditures dmade mon :film or commercial audiovisual products;

b r e t º o t n = .214139.9 s k m e - 36 - e a n e d r e l u [ A d expenditures or postproduction expenditures made on film or commercial audiovisual products;

If a film production company submits a claim for a credit pursuant to the Film Production Tax Credit Act and the aggregate amount of claims pursuant to Subsection B SCORC/SB 2 Page 37 of this section has been met for the fiscal year, the claim shall be placed at the front of a queue for payment in a subsequent fiscal year.

Claims shall be placed in order of the date on which the completed return in which the credit is 5 claimed is filed.

If, in fiscal years 2020 through 2022, the aggregate amount of claims authorized for payment is less than one hundred ten million dollars ($110,000,000), excluding claims by a New Mexico film partner, then the difference in that fiscal year or twenty million dollars ($20,000,000), h whichever is less, shall be added to the aggregate amount of g o claims that may be authorized for payment pursuant to t hr g e i k Subsection B of this section in the immediately following h r i s fiscal year.

h , t, E.

To provide guidance to film production companies e u g e b l regarding the amount of credit capacity remaining in the fiscal e e h n d d i = = o h year, the taxation and revenue department shall post monthly on l ] b ,d i a º e that department's website the aggregate amount of credits r i = r t e w d claimed and paid for the fiscal year.

In addition, the mdivision ashall npost omonthly don mthe :division's website the aggregate amount of claims certified pursuant to Subsection A of this section for the fiscal year or any subsequent fiscal year.

b e d s º o t n = .214139.9 s k m e - 37 - e a n e d r e l u [ A d SCORC/SB 2 division shall post monthly on the division's website the aggregate amount of claims certified pursuant to Subsection A of this section for the fiscal year or any subsequent fiscal year.

As used in this section, "New Mexico film SCORC/SB 2 Page 38 partner" means a film production company that has made a commitment to produce films or commercial audiovisual products in New Mexico and has purchased or executed a ten-year contract to lease a qualified production facility." 5 SECTION 7.

"[NEW"NEW MATERIAL ] NEW FILM PRODUCTION TAX CREDIT.-- A.

A film production company that meets the requirements of the Film Production Tax Credit Act may apply h for, and the taxation and revenue department may allow, a tax g o credit in an amount equal to twenty-five percent of:

t hr g e i k (1) direct production expenditures made in New h r i s Mexico that:

h , t, (a) are directly attributable to the e u g e b l e e h production in New Mexico of a film or commercial audiovisual n d d i = = o h product;

l ] b ,d i a º e (b) are subject to taxation by the state r i = r t e w d m a n o of New Mexico;

d(c) mexclude :direct production expenditures for which another taxpayer claims the new film production tax credit;

band e(d) ddo snot ºexceed othe tusual nand =customary .214139.9cost sof kthe mgoods eor -services 38acquired -when eSCORC/SB a2 nPage e39 dpurchased rby eunrelated lparties. u [ A d (c) exclude direct production expenditures for which another taxpayer claims the new film production tax credit;

andThe (d)secretary doof nottaxation exceedand therevenue usualmay anddetermine customarythe costvalue of the goods or services acquiredfor purposes of this section when purchasedthe bybuyer unrelatedand parties.seller are affiliated persons or the sale or purchase is not an arm's 5 length transaction;

The secretary of taxation and revenue may determine the value of the goods or services for purposes of this section when the buyer and seller are affiliated persons or the sale or purchase is not an arm's length transaction;

(d) exclude postproduction expenditures h for which another taxpayer claims the new film production tax g o credit;

and t hr g e i k (e) do not exceed the usual and h r i s customary cost of the goods or services acquired when purchased h , t, by unrelated parties.

The secretary of taxation and revenue e u g e b l may determine the value of the goods or services for purposes e e h n d d i = = o h of this section when the buyer and seller are affiliated l ] b ,d i a º e persons or the sale or purchase is not an arm's length r i = r t e w d transaction.

mC. a n o d m :

bWith erespect dto sexpenditures ºattributable oto ta nproduction =for .214139.9which sthe kfilm mproduction ecompany -receives 39a -SCORC/SB e2 aPage n40 etax dcredit rpursuant eto lthe ufederal [new Amarkets dtax SCORC/SBcredit 2program, C.the percentage to be applied in calculating the amount of credit allowed pursuant to the Film Production Tax Credit Act is twenty percent.

With5 respectD. to expenditures attributable to a production for which the film production company receives a tax credit pursuant to the federal new markets tax credit program, the percentage to be applied in calculating the amount of credit allowed pursuant to the Film Production Tax Credit Act is twenty percent.

D.

The film production company may apply all or a portion of the new film production tax credit granted against personal income tax h liability or corporate income tax liability.

If the amount of u » r the credit claimed exceeds the film production company's tax t h g e liability for the taxable year in which the credit is being l i h r i s claimed, the excess shall be refunded.

h , e h E.

A credit claim shall only be considered received t u g e b l by the taxation and revenue department if the credit claim is e e , gh n d d i = = o h made on a complete return filed after the close of the taxable l ] b ,d i a º r year.

All direct production expenditures and postproduction e r = t e w d expenditures incurred during the taxable year by a film mproduction acompany nshall obe dsubmitted mas :part of the same income tax return and paid pursuant to this section.

bSCORC/SB r2 ePage t41 º o t n = .214139.9 s k m e - 40 - e a n e d r e l u [ A dcredit productionclaim company shall not be submitteddivided asand partsubmitted ofwith themultiple samereturns incomeor taxin returnmultiple andyears. paid pursuant to this section.

A credit claim shall not be divided and submitted with multiple returns or in multiple years.

For purposes of determining the payment of credit claims pursuant to this section, the secretary of 5 taxation and revenue may require that credit claims of affiliated persons be combined into one claim if necessary to accurately reflect closely integrated activities of affiliated persons.

A production for which the new film production tax credit is claimed pursuant to Paragraph (1) of Subsection B of this section shall contain an acknowledgment to the state of h New Mexico.

Unless otherwise agreed upon in writing by the g o film production company and the division, the acknowledgment t hr g e i k shall be in the end screen credits that the production was h r i s filmed in New Mexico and a three-second static or animated h , t, state logo provided by the division shall be included and e u g e b l embedded in the following:

e e h n d d i = = o h (1) end screen credits before the below-the-below-the-line l ] b ,d i a º e line crew crawl for the life of the project of long-formSCORC/SB r2 iPage =42 rlong-form t e w d narrative film productions;

and m(2) abody nof othe dprogram mfor :the life of television episodes, the placement of which shall be:

b e d s º o t n = .214139.9 s k m e - 41 - e a n e d r e l u [ A d SCORC/SB 2 (2) body of the program for the life of television episodes, the placement of which shall be:

5 (b) as a bumper into or out of a commercial break;

To be eligible for the new film production tax credit, a film production company shall submit to the division information required by the division to demonstrate conformity with the requirements of the Film Production Tax Credit Act, including production data deemed necessary by the division and the economic development department to determine the effectiveness of the credit, and a projection of the new film production tax credit claim the film production company plans h to submit.

In addition, the film production company shall g o agree in writing:

t hr g e i k (1) to pay all obligations the film production h r i s company has incurred in New Mexico;

h , t, (2) to post a notice at completion of e u g e b l e e h principal photography on the website of the division that:

n d d i = = o h (a) contains production company l ] b ,d i a º e information, including the name of the production and contact rSCORC/SB i2 =Page r43 t e w d information that includes a working phone number and email maddress afor nboth othe dlocal mproduction :office and the permanent production office to notify the public of the need to file creditor claims against the film production company;

b5 eand d(b) sremains ºposted oon tthe nwebsite =until .214139.9all sfinancial kobligations mincurred ein - 42 - e a n e d r e l u [ A d address for both the localstate productionby office and the permanentfilm production officecompany tohave notifybeen thepaid; public of the need to file creditor claims against the film production company;

and (b) remains posted on the website until all financial obligations incurred in the state by the film production company have been paid;

The division, in consultation with the taxation h and revenue department, shall determine the eligibility of the g o film production company and shall report this information to t hr g e i k the taxation and revenue department in a manner and at times h r i s the economic development department and the taxation andSCORC/SB h2 ,Page t,44 and revenue department shall agree upon.

The division shall also e u g e b l post on its website all information provided by the film e e h n d d i = = o h production company that does not reveal revenue, income or l ] b ,d i a º e other information that may jeopardize the confidentiality of r5 i = r t e w d income tax returns.

mK. a n o d m :

b e d s º o t n = .214139.9 s k m e - 43 - e a n e d r e l u [ A d SCORC/SB 2 K.

If the h requirements of this section have been complied with, the u » r taxation and revenue department shall approve the credit and t h g e issue a document granting the credit.

lSCORC/SB i2 hPage r45 i s L.

That amount of a new film production tax credit h , e h for total payments as applied to direct production expenditures t u g e b l for the services of performing artists shall not exceed five e e , gh n d d i = = o h million dollars ($5,000,000) for services 5 rendered by l ] b ,d i a º r nonresident performing artists and resident principal e r = t e w d performing artists in a production.

This limitation shall not mapply ato nthe oservices dof mbackground :artists." SECTION 8.

b r e t º o t n = .214139.9 s k m e - 44 - e a n e d r e l u [ A d apply to the services of background artists." SECTION 8.

"[NEW"ADDITIONAL MATERIAL] ADDITIONAL AMOUNTS TO BE APPLIED IN CALCULATING CREDIT AMOUNTS--EXPENDITURES MADE IN CERTAIN AREAS OF THE STATE--TELEVISION PILOTS AND SERIES.-- A.

(1) SFCºfor provided that the for»SFC work, services or items SFCº are»SFC provided on location for a production of a film or commercial audiovisual product that is located in New Mexico but at least sixty miles outside of the exterior boundaries of certain counties;

and (2) SFCºfor for»SFC either of the following:

SCORC/SB 2 Page 46 (a) on a standalone pilot intended for series television in New Mexico or on series television h productions intended for commercial distribution with an order g o for at least six episodes in a single season;

provided 5 that the t hr g e i k New Mexico budget for each of those six episodes is fifty h r i s thousand dollars ($50,000) or more;

or h , t, (b) on a production in a qualified e u g e b l e e h production facility.

n d d i = = o h B.

As used in this section, "certain counties" l ] b ,d i a º e includes counties with a net taxable value of property for r i = r t e w d property taxation purposes of greater than six billion dollars m($6,000,000,000)." aSECTION n9. o d m :

b e d s º o t n = .214139.9 s k m e - 45 - e a n e d r e l u [ A d SCORC/SB 2 ($6,000,000,000)." SECTION 9.

"[NEW"NONRESIDENT MATERIAL ] NONRESIDENT BELOW-THE-LINE CREW CREDIT.-- A.

SCORC/SB 2 Page 47 (2) the total eligible wages for below-the-line crew who are not New Mexico residents are:

h (a) not more than fifteen percent of the g o production's total New Mexico budget for below-the-line crew5 tcrew hr g e i k wages;

or h r i s (b) as determined by the division, up to h , t, twenty percent of the production's total New Mexico budget for e u g e b l e e h below-the-line crew wages;

provided that sufficient and n d d i = = o h qualified below-the-line crew who are New Mexico residents are l ] b ,d i a º e not available.

A film production company that is approved for rthe iadditional =credit rby tmeeting ethe wrequirements dof mthis paragraph shall make a nfinancial oor thepromotional additionalcontribution credittoward byeducational, meetingmedia-related thenonprofit requirementsor ofworkforce thisdevelopment defforts min :New Mexico, as determined by the division;

b e d s º o t n = .214139.9 s k m e - 46 - e a n e d r e l u [ A d paragraph shall make a financial or promotional contribution toward educational, media-related nonprofit or workforce development efforts in New Mexico, as determined by the division;

(a) a payment to a New Mexico educational institution that administers at least one industry-recognized film or multimedia program, as determined by the division, equal to at least two and one-half percent of the direct production expenditures for the payment of wages, fringe benefits and per diem for nonresident industry SCORC/SB 2 Page 48 crew made by the film production company to nonresident industry crew;

or (b) promotion of the New Mexico film industry by directors, actors or producers affiliated with 5 the film production company's project through:

2) radio interviews facilitated h by the division;

or g o 4) related events that are facilitated, conducted or sponsored t hr g e i k by the division.

h r i s B.

The credit provided by this section may be h , t, referred to as the "nonresidential below-the-line crew credit." e u g e b l SECTION 10.

TEMPORARY PROVISION--AUTHORIZATION TO PAY e e h n d d i = = o h APPROVED CREDITS PURSUANT TO THE FILM PRODUCTION TAX CREDIT l ] b ,d i a º e ACT.-- r i = r t e w d A.

In addition to the aggregate amount of claims mthat may be paid pursuant to Section 7-2F-12 NMSA 1978, a nclaim ofor da mtax :credit approved by the taxation and revenue department pursuant to the Film Production Tax Credit Act shall be paid:

b e d s º o t n = .214139.9 s k m e - 47 - e a n e d r e l u [ A d SCORC/SB 2 that may be paid pursuant to Section 7-2F-12 NMSA 1978, a claim for a tax credit approved by the taxation and revenue department pursuant to the Film Production Tax Credit Act shall be paid:

and (2) on or after July 1, 2019, but prior to SCORC/SB 2 Page 49 July 1, 2020;

provided that the aggregate amount of claims for credits that may be authorized for payment pursuant to this subsection does not exceed ninety-five million dollars ($95,000,000) and that the claim meets the requirements of 5 the Film Production Tax Credit Act;

provided further that, if the fiscal year 2019 general fund revenues estimated by the consensus revenue estimating group presented to the legislative h finance committee in August 2019 exceeds the fiscal year 2019 u » r general fund revenues forecasted by the consensus revenue t h g e estimating group in February 2019 by at least thirty million l i h r i s dollars ($30,000,000), then the ninety-five-million dollar h , e h ($95,000,000) threshold shall be increased to one hundred t u g e b l twenty-five million dollars ($125,000,000).

e e , gh n d d i = = o h B.

A claim that exceeds the authorized amounts to l ] b ,d i a º r be paid as provided in this section shall be paid in accordance e r = t e w d with the applicable provisions of the Film Production Tax mCredit aAct, nas othose dprovisions mwere :in effect on the date the claim was approved.

b r e t º o t n = .214139.9 s k m e - 48 - e a n e d r e l u [ A d Credit Act, as those provisions were in effect on the date the claim was approved.

The provisions of Sections 7-2F-2.1 and SCORC/SB 2 Page 50 7-2F-6 through 7-2F-11 NMSA 1978 shall not apply to a film production company that commences principal photography for a film or commercial audiovisual product on or after July 1, 2019.

5 SECTION 12.

The effective date of the provisions of Section 2 of this act is January 1, 2020.

-SCORC/SB 492 -Page h51 u25 » r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .214139.9 s k m e - 49 - e a n e d r e l u [ A d