New Mexico Senate Bill SB12

New Mexico 2023 Regular Session

• Introduced: 2/8/23
• Report Pass: 2/17/23

Caption

Film Production Tax Credit Changes

Impact

By increasing the cap on tax credits, SB12 is designed to attract more film productions to New Mexico, thereby boosting the local economy. The revisions will encourage diverse workforce hiring and sustainable practices since companies are required to report on their diversity and vendor sourcing practices. Additionally, the allocation of funds toward training in 'green industries' signifies a commitment to sustainable production practices and environmental stewardship, promoting the state as a leader in eco-friendly film production.

Summary

Senate Bill 12 (SB12) seeks to enhance the economic impact of the film industry in New Mexico by amending the Film Production Tax Credit Act. The bill primarily aims to increase the annual aggregate cap and additional amounts for tax credits available to film production companies, along with defining new eligibility criteria. One significant change is the introduction of a Film and Media Fund to facilitate training in the film and multimedia sectors, thereby supporting workforce development and sustainability within this industry.

Contention

There may be concerns regarding the potential financial impact of increased tax credits on state revenue. While proponents argue that the initial financial outlay can lead to greater long-term economic benefits, critics could argue that these tax credits may disproportionately benefit larger film production companies at the expense of smaller, local businesses. Furthermore, the requirement for productions to maintain a diverse workforce while sourcing vendors sustainably may face challenges in implementation and compliance, raising questions about monitoring and accountability within the industry.