New Mexico – A House committee has agreed to limit the state's film subsidies as a possible compromise to free up money for budget increases demanded by Republican Gov. Susana Martinez.
The Taxation and Revenue Committee unanimously approved a proposal Saturday to cap yearly subsidies at $45 million.
Film projects won't see reductions in the amounts they receive. The state will spread subsidy payments over two or three years if a production qualifies for more than $1 million in rebates..
By deferring some subsidies to future years, the state will free up $25 million for education, health care and other programs in next year's budget.
The panel agreed to a $45 million subsidy limit after the committee turned down other proposals to restrict subsidies to $60 million or $40 million a year.
Copyright 2011 The Associated Press.