Incentives aimed at attracting more filmmakers to New Mexico would get a boost under legislation supported by Gov. Michelle Lujan Grisham as neighboring Texas and other states contemplate similar proposals to sweeten the draw for production companies.
Lujan Grisham was flanked by fellow Democrats and representatives of the film industry as she unveiled the legislation during a news conference Friday.
The governor gave a nod to work done over the years to build up the state’s television and film industry.
“Now we will help that viable industry transform into something greater. This legislation represents a return to the right kind of attitude about New Mexico’s film and television industry,” she said.
The measure would eliminate the state’s cap on rebate payouts for the industry and make other changes that supporters say would result in more productions coming to the state.
Lujan Grisham’s predecessor, Republican Susana Martinez, had signed legislation in 2011 imposing a $50 million annual limit as a way to provide budget certainty and protect state finances while New Mexico struggled through the economic downturn.
The state followed up in 2013 with the “Breaking Bad bill,” named after the Emmy-winning TV drama that filmed primarily in Albuquerque during its five seasons. The goal was to enhance incentives for television productions.
The battle among states to woo the movie business began decades ago, after Canada took advantage of currency exchange rates and government-sponsored tax breaks to lure production from California. Louisiana responded, becoming the first to adopt tax incentives in 1992.
After a surge in competition among the states, things have since waned with some states canceling their incentive programs and others paring back their offerings, according to the National Conference of State Legislatures.
Louisiana was among those to cap annual credits, a move prompted by increasing budgetary pressures, according to legislative organization.
Still, New Jersey revived its incentives last year and there are proposals pending in Texas and New Hampshire to funnel money to such programs. In Ohio, local film commissions are pressuring that state to raise its annual cap from $40 million to $100 million.