Section 7-2F-2 - Definitions. - New Mexico Statutes

7-2F-2. Definitions.

As used in Chapter 7, Article 2F NMSA 1978:   

A.     "commercial audiovisual product" means a film or a videogame intended for commercial exploitation;  

B.     "direct production expenditure" means a transaction that is subject to taxation in New Mexico, including: 

(1)     payment of wages, fringe benefits or fees for talent, management or labor to a person who is a New Mexico resident for purposes of the Income Tax Act [7-2-1 NMSA 1978];  

(2)     payment to a personal services corporation for the services of a performing artist if: 

(a)     the personal services corporation pays gross receipts tax in New Mexico on the portion of those payments qualifying for the tax credit; and 

(b)     the performing artist receiving payments from the personal services corporation pays New Mexico income tax; and

(3)     any of the following provided by a vendor: 

(a)     the story and scenario to be used for a film;

(b)     set construction and operations, wardrobe, accessories and related services; 

(c)     photography, sound synchronization, lighting and related services; 

(d)     editing and related services; 

(e)     rental of facilities and equipment;  

(f)     leasing of vehicles, not including the chartering of aircraft for out-of-state transportation; however, New Mexico-based chartered aircraft for in-state transportation directly attributable to the production shall be considered a direct production expenditure; 

(g)     food or lodging; 

(h)     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; 

(i)     insurance coverage and bonding if purchased through a New Mexico-based insurance agent; and 

(j)     other direct costs of producing a film in accordance with generally accepted entertainment industry practice;  

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

D.     "film" means a single media or multimedia program, excluding advertising messages other than national or regional advertising messages intended for exhibition, that: 

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

(2)     can be viewed or reproduced; 

(3)     is not intended to and does not violate a provision of Chapter 30, Article 37 NMSA 1978; and 

(4)     is intended for reasonable commercial exploitation for the delivery medium used;  

E.     "film production company" means a person that produces one or more films or any part of a film; and  

F.     "postproduction expenditure" means an expenditure for editing, Foley recording, automatic 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 not including an expenditure for advertising, marketing, distribution or expense payments.