A few minutes ago the Senate Finance Committee amended the film production tax credit bill to lower a proposed limit to $50 million what New Mexico could pay out to qualifying TV and film productions in any one year. The bill had had a limit of $45 million. But the Senate Finance Committee amendment appears to have removed a provision that film advocates said would save the state money in the budget year that starts July 1.
That provision would have paid out rebates to TV and film productions in a three-tiered process. The state would pay out a rebate valued under $1 million to a production in one year; rebates valued between $1 million and $5 million would be paid out over two years; and rebates valued at more than $5 million would be paid out over three years.
Under the current program, the film productions spend money in New Mexico and then the state reimburses a quarter of what each production spends in “qualified expenses” — a broad category that contains any direct production expense purchased in New Mexico that has a state tax attached. New Mexico paid out $65.9 million in “qualified expenses” to productions for the year that ended June 30.