Film Credit Cost Soars Ahead Of Cap

New Mexico – The state will hand out some $90 million in film credits after television and film projects rushed to beat a July 1 cap on rebates.

The Albuquerque Journal reports Tuesday that the state expects the total in film credits for the just ended fiscal year to be $85 million to $95 million. That's $20 million to $30 million more than estimated during the last legislative session, when lawmakers -- under pressure from Gov. Susan Martinez to cut the credit -- adopted an annual cap of $50 million for such rebates beginning in the just started fiscal year.

Industry union agent John Hendry says pictures companies rushed to get their applications in before July 1. Because of that, he says applications for film credits next year likely won't exceed the cap.

Copyright 2011 The Associated Press.