Film Subsidy Deal Taking Shape

Ben Lujan

Santa Fe New Mexican - New Mexico will limit film production subsidies to $45 million a year under a proposal approved by a House committee Saturday after Democrats yielded to Republican demands to scale back the measure. House Speaker Ben Luján, D-Santa Fe, was unable to push through a higher subsidy limit, a reflection that Democrats no longer enjoy a solid majority in the House because of GOP gains in last year's elections. "It's better than nothing," Luján said after the Taxation and Revenue Committee unanimously endorsed the film subsidy measure. The bill goes to the House for debate and a possible vote. The film industry opposes the revised measure. "This is a job killer," Eric Witt, executive director of the Motion Picture Association of New Mexico, said after the committee vote.
The bill was developed by House leaders as a potential compromise to free up about $25 million next year for budget increases sought by GOP Gov. Susana Martinez for schools, health care and public safety programs. The state provides a 25 percent tax credit on expenditures by film and television projects in New Mexico. Martinez has advocated reducing the subsidy to 15 percent, saving about $25 million next year. Democrats and film industry representatives have scrambled for weeks to find a middle-ground proposal that can win approval in the Legislature. Film industry supporters say a reduction in the rebate rate will discourage movie and television projects from coming to New Mexico. On Friday, Luján had suggested a $65 million yearly subsidy limit. That was rolled back to $60 million when Luján outlined his bill Saturday to the committee. However, the measure failed on a 7-7 tie, with Republicans and one Democrat opposing it. Read full story here: News New Mexico

Film Subsidy Deal Taking Shape