Film Industry crisis in New mexico with tax incentive cuts?

ALBUQUERQUE, USA – A proposed film tax cut is drawing ire from the local film industry as New Mexico becomes the primary state for shooting movies. The proposed 10% reduction in the current tax rebate will make it uncompetitive.

Facing budget cuts for the next fiscal year, Governor Susana Martinez is eager to shave off expenditure by reducing the state s film tax credit down to 15 percent from its current rate of 25 percent.

While legislatures still debate the tax incentive issue, it is likely that any reduction will negatively affect the local film industry due to the stiff competition it faces from other regions such as Michigan and Louisiana.

However, despite the productions it draws to the state, quantifying its success is never easy, as the program costs tax payers $70 million.

Reaction to New Mexico s film tax cut proposal

Politicians as well as the local film industry have voiced their opinions regarding the proposed tax cut for filmmaking in the state;

Senator Tim Kellar: “We have people who say the incentives are a waste of money, and we have people who say there are 30,000 jobs for our state, and those are knowable answers.”

“I think it’s premature to play politics with 20,000 jobs or so, especially when we know there’s an actual answer out there.” – Krqe

Dana Arnold (Albuquerque studios): Any kind of reduction, and particularly a 40 percent reduction, says New Mexico is now closed for business.

In these tough economic times, we need to do everything we can to foster job creation, and a reduction in the film incentive program is a job killer, not a solution for continued job creation. – Bizjournals

Film liason Charles Ashley (Bernalillo county) “Twenty-five percent is good. I think to touch it, get rid of it would hurt us because right now it’s competitive.” – Koat

Rick Clemente, I-25 Studios CEO: “Producers and films come to New Mexico because of the program,” he said. “When they read that there may be some instability, they will move on to another state. This week, I have four potential clients for the studio, and I need to assure them it’s going to be fine, and I can’t.” – ABQJournal

Sponsored links

Buy a Film funding guide to prepare for your next movie production.

subscribe