---
title: "New Mexico film tax incentives in Wrapbook"
slug: "new-mexico-tax-incentives-in-wrapbook"
updated: 2026-07-07T19:21:41Z
published: 2026-07-07T19:21:41Z
canonical: "help.wrapbook.com/new-mexico-tax-incentives-in-wrapbook"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.wrapbook.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Mexico film tax incentives in Wrapbook

> [!NOTE]
> Setting up a New Mexico tax incentives project in Wrapbook is permission based
> 
> To set up, your account must have one of the following [roles](/v1/docs/permissions-and-access-control) enabled:
> 
> - Role: *Company Admin*
> - Custom role with: *General settings* - *Full access*

## Overview

Wrapbook supports New Mexico (NM) tax incentive requirements so you can process payroll while qualifying for state incentives.

This guide is designed to help production administrators:

- [Understand which NM tax incentive requirements Wrapbook can handle automatically](/v1/docs/new-mexico-tax-incentives-in-wrapbook#requirements)
- [Learn how to set up an NM tax incentive project in Wrapbook](/v1/docs/new-mexico-tax-incentives-in-wrapbook#how-to-set-up-an-nm-tax-incentive-project-in-wrapbook)
- [Know how to identify qualifying workers](/v1/docs/new-mexico-tax-incentives-in-wrapbook#how-to-identify-workers-qualifying-for-nm-tax-incentives-in-wrapbook)
- [Know what to expect when running payroll for a NM tax incentive project in Wrapbook](/v1/docs/new-mexico-tax-incentives-in-wrapbook#payroll-considerations-for-nm-tax-incentive-projects-in-wrapbook)

To learn more about the NM tax incentive program works, check out our blog post: [Maximizing New Mexico’s Film Tax Credits & Partners](https://www.wrapbook.com/blog/new-mexico-film-tax-credits)

To see official guidance from the New Mexico Film Office, [click here](https://nmfilm.com/whynewmexico/incentives-2).

## Requirements

When you [setup a project in Wrapbook that’s applying for NM tax incentives](/v1/docs/new-mexico-tax-incentives-in-wrapbook#how-to-set-up-an-nm-tax-incentive-project-in-wrapbook), Wrapbook will manage the following requirements:

### **Withholding**

- Wrapbook applies a flat **5.9% withholding** to non-resident front-of-camera workers (both W-2 and loan-out). The production is required to identify these workers.
- If your production company is designated as a ***New Mexico film partner***, the 5.9% withholding also applies to non-resident (ATL) workers. The production is required to identify these workers.
- For W-2 workers, this overrides their normal NM withholding elections to meet incentive requirements

### **Super Loan-Out (SLO) Processing**

- Identified loan-out workers are paid through Wrapbook's Super Loan-Out entity, which is required for incentive qualification

### **Gross Receipts Tax (GRT)**

- Wrapbook automatically calculates NM SLO payout and charges the appropriate GRT based on your NM office address

### **Invoicing**

- You'll receive two separate invoices: one for loan-out qualifying worker payroll costs and one for remaining payroll costs
- The total of both invoices equals your full payroll funding amount

## How to set up an NM tax incentive project in Wrapbook

Use these steps to configure your NM tax incentive project in Wrapbook:

1. Create the project - On the [*All projects dashboard*](/v1/docs/all-projects-dashboard), click the **Create project** button, and follow prompts for setting up [*Project details*](/v1/docs/1-project-details) and [*Workers’ compensation*](/v1/docs/2-workers-compensation)
2. During [*Payroll*](/v1/docs/payroll-setup) setup, under *Work locations*, click to choose **United States**, and then enter each work location into the *Search* box.
3. In the list of address results, click to select the correct address. Work locations that have been selected will display under *Added work locations.*
4. Under *Are you applying for production incentives at any of the above locations?*, click to choose **Yes**
5. When you choose *Yes*, a Tax Credits section will appear where you’ll need to do the following:
  - Under *Is this a New Mexico Tax Credit project?* click to choose **Yes**
  - Under *New Mexico Office Location,* enter the address of your NM production office. A NM office address must be listed in order to run payroll for the project.
  - Click to agree with the NM addendum when prompted
6. Continue setting up the following:
  - [Unions, Guilds, and Health Plans](/v1/docs/3-unions-guilds-health-plans)
  - [Default settings](https://help.wrapbook.com/docs/5-default-settings)
  - [Accounting tools](/v1/docs/7-accounting-tools-setup)
  - [Complete project setup](/v1/docs/8-complete-project-setup)

![Form for entering work locations and production incentives for project management.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/NM tax.png)

*Under Work locations, click to choose* ***United States****, begin entering the NM address. In the list of address results, click to select the correct address. Work locations that have been selected will display under Added work locations. Under Are you applying for production incentives at any of the above locations?, click to choose* ***Yes****.*

![Form section asking about New Mexico tax credit project and office location details.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/NM tax (1).png)

*In the Tax Credits section, under Is this a New Mexico Tax Credit project?, click to choose* ***Yes****. Under New Mexico Office Location, enter the address of your production office in NM.*

## How to identify workers qualifying for NM tax incentives in Wrapbook

After you’ve invited workers to a NM tax incentive project in Wrapbook, you’ll need to use the steps below to identify those who are qualifying workers. Keep in mind that only non-resident workers that have been [onboarded](/v1/docs/how-to-invite-workers-to-a-project) to the project will appear on the list. For this reason, you may need to periodically check for relevant workers, depending on your production schedule.

In most cases, workers who are non-resident "performing artists" or "front-of-camera" talent should be identified for the additional taxes that are required for the incentive. If you are a New Mexico Film Partner, you should select all above-the-line (ATL) workers on this list.

1. Go to the project’s [People dashboard](/v1/docs/people-dashboard#project-people)
2. At the top of the dashboard, click the **Manage NM Tax Incentive Workers** button
3. On the *Manage New Mexico Non-Resident Tax Incentive Workers* page, you can enable or disable worker withholdings, by clicking the checkboxes to select the worker(s), and then clicking the **Action** button at the bottom of the page. In the menu, you can click to select either **Mark as enabled**, or **Mark as not enabled**.

## Payroll considerations for NM Tax Incentive projects in Wrapbook

Running payroll for a project that’s applying for NM Tax Incentives is relatively the same with the following exceptions:

- You must agree to the NM Tax Addendum and enter your production’s NM office address in the project’s [Payroll settings](/v1/docs/payroll-setup). If this is not done, an alert will appear next to the payables that cannot be processed on the [Run payroll](/v1/docs/run-payroll) page.
- After payroll is run for a NM Tax Incentive project:
  - The payroll will be reviewed for accuracy. Our team will reach out if we see any issues.
  - The *Loan Out payments* will be listed on the *Payroll* page. You can hover over your cursor over the information icon to see a breakdown of deductions, including the *New Mexico State Tax Credit* amount.
  - *New Mexico GRT* and *SLO fees* are itemized in the *Summary* section of the project’s *Payroll* page
  - The Payroll invoice from Wrapbook will itemize SLO payments on the first page of the invoice, and separately further down the page

![Loan-out payment details for Pink Electrician LLC, including deductions and total amounts.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/NM Tax (10).png)

*Once payroll is run, you can hover over the information icon in the Loan-Out Payments section of the Payroll page to see a breakdown of deductions*

![Summary of fees including New Mexico Gross Receipt Taxes and Super Loan-Out Fees.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/NM tax (5).png)

*New Mexico GRT and SLO fees are itemized in the Summary section of the project’s Payroll page*

![Invoice from Wrapbook detailing payments for regular and super loan out payroll.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/Untitled - 2026-01-06T115128.633.png)

*On the first page of the payroll invoice, the SLO payroll amount will be itemized under Funding Summary*

![Invoice summary showing payment details for Fund Payroll and total amount due.](https://cdn.us.document360.io/67f3ef76-1568-46b4-8047-4792fc3a99ce/Images/Documentation/NM tax (6).png)

*Further down the invoice, SLO payroll will be listed in its own section, along with the Total amount*

Tax benefits offered by states (or foreign countries) to encourage films and television projects to shoot in their jurisdiction. These incentives can be in the form of a tax credit for that state, or a rebate paid directly to the production company once all requirements have been fulfilled.

A loan-out company is a corporate entity, typically an S Corporation or C Corporation, that "loans out" the services of an individual (usually an entertainment industry professional) to other companies. The individual is an employee of their loan-out company, which in turn contracts with production companies or other businesses.

(Above the Line) Budget and production cost category given to the story, talent, and producing elements of a production (i.e., story rights, writer, producer, actors, and related costs).