New Mexico Renews Tax Incentive, Adds Cap
The popular film tax incentive in New Mexico has been renewed by the state Senate, but a total funding cap has been added, writes The Hollywood Reporter. Productions shooting in the state will continue to receive a 25% annual subsidy, but the total payment to productions has been capped at $50 million. Last year, New Mexico paid 16 productions $65.9 million.
One stipulation in the new plan would allow the film commission to give up to $65 million in one year, however it would have to take any money over $50 million out of the following year's budget.
Now the plan will go to committee where a compromise between the Senate's $50 million approved cap and the House's $45 million approved cap will be reconciled.
Republican Gov. Susana Martinez has said she wants the cap set at $45 million and the percentage reduced to 15%. She has the power to veto the bill.
The film industry spent $607.5 million in the state in 2010 compared to $62 million in 2005.
One stipulation in the new plan would allow the film commission to give up to $65 million in one year, however it would have to take any money over $50 million out of the following year's budget.
Now the plan will go to committee where a compromise between the Senate's $50 million approved cap and the House's $45 million approved cap will be reconciled.
Republican Gov. Susana Martinez has said she wants the cap set at $45 million and the percentage reduced to 15%. She has the power to veto the bill.
The film industry spent $607.5 million in the state in 2010 compared to $62 million in 2005.
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