Highlights of the New Mexico Film Tax Incentive Program Study

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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crewnewmexico.com is New Mexico's Premier Film Industry Resource. Click here for information about the New Mexico Film Incentive Program. For our comment, contact crewnewmexico.com at (505) 930-0443, or info@crewnewmexico.com

Incentives are Blooming

From "Variety, " by Matthew Ross

For the past six years, Louisiana and New Mexico have reigned atop the ever-expanding list of states that have opened their coffers to the movie business. But they're certainly not the only draws out there. Producers and studios have more choices than ever before, and the trend shows absolutely no sign of slowing down.

Over the past year, we've seen how a single new piece of legislation can change the entire U.S. landscape in an instant, whether it's coming from states with established production services (New York) or a new upstart whose financial package is simply too good to resist (Michigan).

Picking the best incentive packages in the U.S. is far from an exact science, but we've given it a shot. Herewith, we present our top five. (Of course, things could always change next week.)

LOUISIANA

The granddaddy of the incentive boom continues to impress and endure. When Hurricane Katrina and its aftermath made shooting difficult in New Orleans, production houses and crew members set up shop in other cities such as Shreveport and Baton Rouge without missing a beat. And 2008 is shaping up to be a record year -- 28 productions have come through the state through April, a pace that should easily eclipse 2007's record of 53 productions for the entire year. The reason: Along with its 25% transferable credit for all in-state expenditures and an additional 10% on labor for state residents, Louisiana continues to develop its production resources, which now include the Cinelease soundstages in Shreveport and the Celtic Media Center in Baton Rouge. Upcoming and recent pics include David Fincher's "The Curious Case of Benjamin Button," with Brad Pitt, and Oliver Stone's "W." Louisiana continues to be a favorite location for both the Weinstein Co. bring in regular business.

NEW MEXICO

Like Louisiana, New Mexico boasts one of the most established, effective incentive programs in the U.S. Rather than offer tax credits, the state provides a flat-out cash rebate covering 25% of all in-state expenses. In addition, it offers 0% loans (in exchange for backend participation) of up to $15 million on shows spending at least $2 million within the state. In previous years, the one knock on New Mexico was that it had scant facilities and hardly any qualified local crew. That situation is being remedied. Last June, Albuquerque Studios, a $75 million soundstage and production hub, opened its doors. Recent and upcoming productions to take advantage of the new facility include Taylor Hackford's "Love Ranch," Jim Sheridan's "Brothers" and McG's "Terminator Salvation: The Future Begins," currently in prep.

CONNECTICUT

In only two years, Connecticut has gone from nonentity to major player in the incentive game, and has offered further proof that film-related legislation has the ability to give local economies an immediate boost. Thanks to its generous 30% tax credit and its close proximity to the resources and crew of neighboring New York, Connecticut has managed to lure a slew of high-profile productions recently. Seven features are shooting there, including Andrew Jarecki's "All Good Things" with Ryan Gosling and Kirsten Dunst, P.J. Hogan's "Confessions of a Shopaholic" and Sam Mendes' "Farlanders."

NEW YORK

Until a few weeks ago, New York had one of the weaker incentive programs in the nation. That still didn't stop more than 250 features from shooting in the state last year. Those stats are about to be shattered. In April, Gov. David Paterson and the Legislature teamed up to pass a bill that tripled the state tax credit on production expenses to 30%, with an additional 5% thrown in for shows shot within New York City. For productions big and small, the cringe-inducing costs of shooting in Gotham have suddenly become easier to manage.

MICHIGAN

The new kid on the block, Michigan rounds out the list purely based on its unmatched investment, which was announced last month. It includes a phenomenal 40%-42% cash or tax-credit rebate (whichever the producers/financiers prefer) on all in-state expenditures, plus a 30% reimbursement for nonresident below-the-line crew members. Simply put, this is the best package ever to be introduced in the United States. But that doesn't mean there won't be significant hurdles to overcome, the most glaring of which is Michigan's utter lack of any significant production resources or local crew. Expect that situation to change, and fast. Just look at Louisiana and New Mexico.

"Crash" to Film in NM This Summer

If you're a big fan of the movie "Crash," you'll be glad to know that they're going to be filming a TV-Series based on the film --- and though the show is set in LA, they're going to be filming in Albuquerque. Lester Berman is producing (he also produced Wildfire). Filming to take place this summer. We'll update you on any new details as they arise. Stay tuned.