The 411 on Film Financing New Mexico Style
By ERMW Team
Sept 5, 2024
When it comes to film financing, New Mexico offers abundant opportunities for filmmakers. With its diverse landscapes, vibrant culture, and attractive incentives, the Land of Enchantment has become a sought-after destination for film productions. In this article, we will provide you with a comprehensive overview of film financing in New Mexico and present ten effective ways to secure funding for your next film project.
1. State Film Tax Incentives:
The cornerstone of New Mexico's appeal to filmmakers is its generous tax rebate program. Depending on the project's specifics, production companies can recoup 25-40% of their qualified expenditures within the state!
Key points to consider:
Understanding what qualifies as an 'in-state expenditure' is crucial.
The program has certain minimum spending requirements, and there may be annual caps on the total amount of rebates the state can award.
Filmmakers need to be mindful of compliance and documentation to successfully claim the rebates.
Read more about the state’s incentives on nmfilm.com
2. New Mexico State Budget:
By Alexf - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=132134269
While not a direct funding source, the state budget impacts the availability of funds for various grant programs or initiatives supporting film production.
Staying informed about budget allocations related to film and media can help filmmakers anticipate when and where funding opportunities might arise.
Stay up to date with the state’s budget on nmdfa.state.nm.us
3. Private Investors and Financing:
New Mexico has a growing network of individuals and organizations interested in investing in film projects.
Building relationships with these potential investors requires a solid business plan, a compelling pitch, and a clear understanding of their investment expectations and risk tolerance.
Read “Finding Film Investors” by FilmPropsosals for more insight into attracting investors to your project.
4. Film Investment Opportunities:
Production companies and film finance companies often actively seek projects to invest in. These entities bring not only financial resources but also industry expertise and potential distribution connections.
Filmmakers need to be prepared to share ownership or profit participation in exchange for this type of investment.
To understand the process better, we recommend reading “When and How Film Participants Get Paid” by Tim Totora.
5. Crowdfunding:
Crowdfunding platforms have democratized film financing, allowing filmmakers to reach a global audience of potential backers.
Successful crowdfunding campaigns require a strong online presence, compelling marketing materials, and a clear strategy for engaging and rewarding backers.
What to try Crowdfunding? Read New York Film Academy’s article, “How to Write a Crowdfunding Pitch For Your Film”.
6. Grants and Foundations:
Various organizations in New Mexico, both public and private, offer grants specifically for film projects. These can range from small grants for development to larger awards for production or post-production.
The application process for grants is often competitive and requires a well-crafted proposal and a clear alignment with the grant's mission and objectives.
If you’re looking for somewhere to start, Studio Binder put together “The Ultimate Film Grant List for Every Filmmaker” that’s a great place to begin.
7. Co-Production with Local Organizations:
Partnering with local entities can open doors to unique funding opportunities and in-kind support.
For example, a municipality might provide filming locations or logistical assistance in exchange for showcasing their community in the film.
Nick Larovere has an article, “How to Pick a Film Producing (or Business) Partner” with a lot of helpful information.
8. Product Placement and Brand Partnerships:
Incorporating brands or products into a film can generate revenue through fees or in-kind contributions.
This approach needs to be done thoughtfully to avoid feeling forced or disrupting the film's narrative.
“How to Use Product Placement in Movies to Cut Costs” by Wrapbook gives a lot of helpful insights.
9. Pre-Sales and Distribution Agreements:
Securing pre-sales to distributors or streaming platforms can provide crucial upfront financing, but this typically requires a proven track record or a highly marketable project.
Filmmakers need to be aware of the terms and conditions of these agreements, which can impact ownership and control of the film.
Understanding financing agreements is essential. The Law Offices of Ernest Goodman has a great article on the subject, “Types of Film Distribution Agreements”.
10. Film Financing Consultants and Film Commissions:
Navigating the complexities of film financing can be challenging, especially for first-time filmmakers. Consultants and film commissions offer valuable guidance and can connect filmmakers with potential investors and resources.
The NM Film Office supplies the state with a list of trained Film Liaisons to assist with productions. You can find your rep on their website.
Overall, the film financing landscape in New Mexico is rich with opportunities, but it requires a proactive and strategic approach.
Filmmakers need to be well-versed in the various funding options available, build strong relationships within the local film community, and present a compelling vision for their projects. By leveraging these resources and tapping into the state's supportive infrastructure, filmmakers can successfully bring their creative visions to life in New Mexico.