Senate Approves $50M Cap On NM Film Subsidies

KRWG News – SANTA FE, N.M. (krwg) The Senate has approved a proposed $50 million cap on subsidies for film production.

By limiting film tax credits, the legislation frees up $23 million next year that lawmakers plan to use in the budget for public education, health care and public safety programs.

Lawmakers developed the cap as an alternative to a proposal by Republican Gov. Susana Martinez.

The state provides a 25 percent refund on certain expenditures on film and television projects in New Mexico, but the governor wants to reduce the rebate to 15 percent. Industry officials say that will kill jobs in New Mexico by driving film projects to other states.

The Senate measure passed on a 30-10 vote Wednesday, shortly after midnight. It goes back to the House, which has approved a $45 million cap.

Copyright 2011 The Associated Press. krwg