New Mexico Governor Susana Martinez signed a bill today that will allow production companies to pre-assign their tax rebates to third parties. Unlike many states that require producers to sell their credits at a discount, New Mexico provides a direct cash rebate, and the ability to pre-assign the earned rebate is expected to benefit independent producers seeking financing for their projects. It goes into effect January 1.
“This bill proves once again the deep, bipartisan support for the film industry in New Mexico,” said Dana Arnold, CEO of Albuquerque Studios. “We want to thank the legislators and the Governor for promoting job creation and small business growth in New Mexico.”
A second bill, which would extend the state’s existing 30% tax incentives for TV series to stand-alone pilot episodes, awaits her signature. That bill also would make it easier for feature film productions to shoot at outdoor movie ranches to qualify for the full 30% labor credit.
In 2013, Martinez, a conservative Republican, vetoed the tax incentives contained in the state’s so-called Breaking Bad bill, saying she opposed an “unlimited subsidy to a single industry.” She later changed her mind and signed it into law.