Two new bills to increase New Mexico’s film tax incentives have sailed through the state Legislature. The measures now go to Governor Susana Martinez, who is expected to sign them into law.
One of the bills, which the state Senate approved unanimously last week and passed the House by a vote of 51-2, extends the state’s existing 30% tax incentives for TV series to stand-alone pilot episodes. It also makes it easier for feature film productions that shoot at outdoor movie ranches to qualify for the full 30% labor credit.
The second bill is designed to attract more independent film and commercial work to New Mexico by allowing production companies to pre-assign their tax rebates to a third party. 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 designed to benefit independent producers seeking financing for their projects and commercial producers working for agencies or accounts wanting direct assignment of the rebate. If signed into law, it will go into effect on January 1.
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.
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