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Susanna Martinez is considering reducing the film industry refundable tax credit from 25% to 15%. Production companies can get 25% back on most in-state production costs by filing a NM tax return.
According to the New Mexico Film Office, since 2003, there has been a direct spend by 590 productions here totaling $1.2 billion, with a total economic impact of $3.6 billion, assuming a multiplier of three. In the same time period, the state approved $223.9 million in credits.
One study by the Arrowhead Center at New Mexico State University found the state lost money on the program. Another by Ernst & Young found the state recouped $1.50 for every dollar spent.
“Any kind of reduction, and particularly a 40 percent reduction, says New Mexico is now closed for business,” Arnold said in a prepared statement. “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.”
“By getting into the film business early, New Mexico has gained a major strategic advantage over states that are just now adopting incentives like ours,”
Major Film & Television Production List/ January 2003 – December 2010
http://www.nmfilm.com/filming/downloads/filmographyFiscalYear.pdf (broken link)
Susanna Martinez is considering reducing the film industry refundable tax credit from 25% to 15%. Production companies can get 25% back on most in-state production costs by filing a NM tax return.
According to the New Mexico Film Office, since 2003, there has been a direct spend by 590 productions here totaling $1.2 billion, with a total economic impact of $3.6 billion, assuming a multiplier of three. In the same time period, the state approved $223.9 million in credits.
One study by the Arrowhead Center at New Mexico State University found the state lost money on the program. Another by Ernst & Young found the state recouped $1.50 for every dollar spent.
“Any kind of reduction, and particularly a 40 percent reduction, says New Mexico is now closed for business,” Arnold said in a prepared statement. “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.”
“By getting into the film business early, New Mexico has gained a major strategic advantage over states that are just now adopting incentives like ours,”
Major Film & Television Production List/ January 2003 – December 2010
http://www.nmfilm.com/filming/downloads/filmographyFiscalYear.pdf (broken link)
The new governor of Michigan plans to eliminate film subsidies there, which have cost the state far more than they have produced in either revenues or jobs created.
If NM and MI eliminate film subsidies (which are a form of corporate welfare, and by all means should be eliminated) then more film jobs go back to California and New York. A win-win situation.
Susanna Martinez is considering reducing the film industry refundable tax credit from 25% to 15%. Production companies can get 25% back on most in-state production costs by filing a NM tax return.
According to the New Mexico Film Office, since 2003, there has been a direct spend by 590 productions here totaling $1.2 billion, with a total economic impact of $3.6 billion, assuming a multiplier of three. In the same time period, the state approved $223.9 million in credits.
One study by the Arrowhead Center at New Mexico State University found the state lost money on the program. Another by Ernst & Young found the state recouped $1.50 for every dollar spent.
“Any kind of reduction, and particularly a 40 percent reduction, says New Mexico is now closed for business,” Arnold said in a prepared statement. “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.”
“By getting into the film business early, New Mexico has gained a major strategic advantage over states that are just now adopting incentives like ours,”
Major Film & Television Production List/ January 2003 – December 2010
http://www.nmfilm.com/filming/downloads/filmographyFiscalYear.pdf (broken link)
Can't use terms like "job killer" anymore per liberal nannies.
If NM and MI eliminate film subsidies (which are a form of corporate welfare, and by all means should be eliminated) then more film jobs go back to California and New York. A win-win situation.
Interesting tactic on the part of our new 'pro-business, no new taxes' governor.
Not understanding how it would save the state money if the productions stop coming as a result of the change. 15% of 0 is still 0.
Surely those productions that are already in place or contracted will still get the 25% rate so most likely no 'savings' there.
Personally, I see it as just another attempt to undo something good that was put in place by her predecessor, regardless of the overall impact on the state.
In any event, isn't it funny how things are interpreted in our black and white world:
But, but, but......it's Hollywood liberal welfare.
No reason in the world the entertainment industry should be receiving subsides of any kind. Businesses need to thrive or die without taxpayers underwriting them, period.
Why do they deserve tax breaks in the first place when they earn millions and millions in profits on hit films? Explain one good reason for a tax break. IF they bring jobs, then those jobs are subsidized by the taxpayers and are temporary at best. I can't think of any reason to offer tax breaks to wealthy corporations, be they oil, farmers, or the film industry.
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