Martinez Plans to Cut Subsidies For Filmmakers

Governor Martinez
From - Is subsidizing moviemakers with taxpayers' money a sound investment or a government giveaway? Neither New Mexico legislators nor economists can agree on an answer.
Perhaps the only certainty is that Gov. Susana Martinez has picked a fight with Hollywood as one of her first actions, proposing to cut subsidies for moviemakers in a state whose film industry has exploded during the last decade. Martinez, a Republican, wants to reduce tax credits for film productions from 25 percent to 15 percent. She said the change would save state taxpayers $25 million this year.
Numerous other governors, such as Republican Rick Snyder of Michigan, also want to cut money for the movie industry. Michigan has had the nation's most generous movie subsidy since 2008, but a state study said the cost of the program outweighed the benefits.  Studies in New Mexico have reached differing conclusions on whether taxpayer support for moviemakers has paid off through more jobs and revenue.  But New Mexico state Rep. Dennis Kintigh said using tax money to help the movie industry is bad public policy. He has reintroduced a bill to kill the moviemaker subsidy altogether. Kintigh, R-Roswell, said the benefits of the film industry are exaggerated and the subsidy for Hollywood puts a burden on taxpayers. "If film producers spend $1,000 to feed people on a set, they receive a check from the state for $250 because food is a production cost. No other industry gets that," Kintigh said.  More here


Anonymous said...

I very much support Governor Martinez is this going to help the job situation in New Mexico. People I know in the film industry have indicated that the new studios here in NM haven't been doing that well. I suspect this will give Hollywood every reason in the world to close shop in NM. I would like to hear Michael and Jim weigh in on this one.

Post a Comment