crewnewmexico.com is proud to relay the following press release from the office of Governor Bill Richardson. We told you. . .
New Study of Film Industry Incentives Show Strong Job and Revenue Creation for New Mexico
SANTA FE- A new study released today shows that New Mexico’s film industry tax incentives are delivering impressive economic and fiscal results for the state and its workers. The study, using the year 2007 as a base measure, was conducted by Ernst & Young, one of the world’s largest professional service firms. Results showed that combined New Mexico’s state and local governments garner a positive 1.5 return on investment on the tax credits extended to companies producing films in the state, or $1.50 for every $1 extended in state tax credits.
“I am pleased at the results of today’s study. Not only are we are seeing a net gain to state and local tax revenues as a result of these incentives to attract these film and television productions, but we are also creating high quality jobs with health coverage and benefits for the people of our state,” Governor Bill Richardson said. “This is a successful initiative worthy of our continued support, especially in these difficult economic times.”
According to the Ernst & Young study:
· New Mexico has a 1.5 return on investment on combined state and local taxes.
· Film production activities in New Mexico created 2,220 direct film and media jobs in 2007
· 3,769 direct jobs from capital expenditures and projected film tourism spending were attributable to productions in 2007.
· 5,989 direct jobs attributable to the film production tax credit in 2007 created a total of 9,210 total jobs in New Mexico
· Average annual salary of film technicians: $49,000
· Average annual salary of New Mexicans just over $30,000
· Over 200 new film-specific businesses established in New Mexico since 2003, directly attributable to the film production tax credit.
· Over 600 additional New Mexico businesses are benefiting from film activities.
The film production incentives were expanded in 2003 at the urging of Governor Bill Richardson, who predicted at the time that it would create good jobs for New Mexicans and diversify our state’s economy.
The Quantitative Economics and Statistics (QUEST) of Ernst & Young authored the study of New Mexico’s film production incentives. This multidisciplinary practice combines business and industry experience with capabilities including federal, state, and local tax policy analysis and revenue estimation; economic development strategy and targeting; and economic and fiscal impact modeling. QUEST also provides analyses to effect legislation and regulatory change, relying on its team of respected tax economists and statisticians to produce quantitative studies of a variety of federal and state issues.
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