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January 19, 2009 by John Dugan
Ernst & Young just prepared a new study on the economic impacts of the New Mexico film production tax credit program. The study shows astounding growth in film production that is directly correlated with increasing tax incentives. “In terms of total spending, when the credit rate was increased from 15% to 20% in 2005, total estimated spending rose from $24 million to $144 million. In the following year, when the rate was increased to 25%, total film spending increased to an estimated $223 million, a 55% increase from the prior year.” I think other states had better start taking queues from New Mexico. I know of one state in particular that is in dire need of a capital infusion… yep, California.
Download the report here: Economic and Fiscal Impacts of the New Mexico Film Production Tax Credit
From the executive summary…
New Mexico has provided tax incentives to film productions since the film production tax credit was adopted in 2002. The program has attracted more than 115 major film productions to New Mexico since its adoption in 2002, including 22 films that were assisted through the State Investment Council’s loan participation program. In 2007, 30 films were produced in New Mexico generating $253 million of spending benefiting the New Mexico economy and generating higher state and local tax collections. This study presents the estimated economic and fiscal impact of the film production tax credit program.
My thanks to Jeseph Guerriero at Tax Credits LLC for passing this report over to me.
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