This bill amends Section 7-27-5.26 of the New Mexico Statutes to facilitate loans from the Severance Tax Permanent Fund for independent film projects produced in New Mexico. It allows the state investment officer to provide loans at a zero percent to market rate of interest specifically for independent New Mexico film projects, which are defined as projects filmed entirely in New Mexico with a majority of the production crew being local residents and produced by companies that are not major studios or multinational streaming services. Additionally, the bill permits investments of up to eighty percent of the expected film production tax credit available to the production company, contingent upon the company naming the state investment officer as its agent for tax credit applications.

The bill also clarifies the definitions related to film projects and private equity funds, ensuring that investments are made in projects that meet specific criteria, such as having a distribution contract and a completion bond. The New Mexico film division will determine the estimated amount of the film production tax credit, and the council will establish guidelines for the initiation and terms of the loans. Overall, this legislation aims to promote local film production by providing financial support to independent filmmakers in New Mexico.

Statutes affected:
introduced version: 7-27-5.26