Repeal Film Production Tax Credit
The impact of repealing the Film Production Tax Credit is notable, as it may significantly influence future film productions in New Mexico. Supporters of the repeal argue that the tax credit was not generating sufficient economic returns to justify its costs, pointing to the need for a more fiscally responsible approach to state finances. Some lawmakers believe that resources should be redirected towards more vital services or programs that could provide broader benefits to the state’s economy.
House Bill 237, introduced in the First Session of the 56th Legislature of New Mexico, aims to repeal the Film Production Tax Credit Act. The bill is set to affect the film industry's financial incentives within the state by removing a tax credit that was previously provided to filmmakers operating in New Mexico. The repeal focuses on ensuring that while existing claims for credits may still be honored, no new credits will be awarded following the bill's effective date on July 1, 2023.
However, critics of the bill have raised significant concerns regarding its potential consequences on the local economy. The film industry has established a foothold in New Mexico, contributing not only to job creation but also to boosting tourism and local businesses associated with film production. Opponents argue that the repeal could deter future film projects from choosing New Mexico as a filming location, potentially leading to job losses and reduction in economic activity linked to the film industry.