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New Mexico Senate Passes Bill To Expand Film Tax Credit

Passes Senate 28-5, On to House.   Commentary:  

The State Senate passed Senator Lisa Torraco’s bill to create more jobs in the film industry in New Mexico, for New Mexicans.

“This bill is all about employing more New Mexicans in the film industry,” Senator Torraco said. “When this bill becomes law, we expect the film industry to expand even more in the state, creating 50 to 150 new jobs for our residents.”

She says while the state is doing well  attracting production work to the state because of the film tax credit in those areas, she wants film distribution jobs, too.

I want more jobs to be created. Why stop this successful tax credit in the areas of production and postproduction. We want it all. We want those coveted film distribution jobs, too.  To get them, we need to expand the tax credit to them,” Torraco said.

SB 238 encourages full-service production companies to relocate to New Mexico by offering them an additional tax credit on their distribution services. Currently, production companies enjoy tax credits on things such as filming and production expenses.

Senator Torraco’s bill creates a new section of the Film Production Tax Credit Act for distribution services. Examples of those services include graphic design, copywriters, programmers, accountants and printing and coordinating the release or exhibition.

The tax credit is equal to 25% of the distribution costs of making a film or a commercial audiovisual product available for commercial release.

To qualify for the new tax credit, a production company would need to be located in the state, pay wages and fringe benefits to New Mexico residents and have the credit apply to the services directly related to distribution.  It would apply to productions that begin after July 1, 2016.