New Mexico direct spending by film, TV and digital media production reached $855 million in fiscal 2022 ending June 30, the state governor’s office said Thursday.
New Mexico’s film and television industry has continued to grow, spending more than doubling from $292 million in 2020 to $626.5 million in 2021. It’s not just the state’s major cities that are benefiting from the stimulus program. . As a result of legislation that led the way in 2019 that provides an additional five percent tax increase for productions outside of Albuquerque and Santa Fe, New Mexico’s rural communities saw nearly $50 million in 2022 after seeing $6.5 million from Hollywood in 2021.
Armed with refundable tax credits of 25 to 35 percent, the state offers one of the most generous tax breaks in the nation to the entertainment industry. Lawmakers more than doubled the annual cap on their stimulus program from $50 million to $110 million in 2019. Netflix and NBCUniversal both recently built production studios in New Mexico and pledged $2 billion and $500 million, respectively, to produce content in the state over the next ten years.
Recent projects to shoot in New Mexico include: Stranger things, better call Saul and Out of range†
“Another record year for film and television industry spending makes it as clear as ever that New Mexico is the place to be for film and TV,” said government leader Lujan Grisham in a statement. “Thanks to the work we’ve done to create a successful production environment and build a thriving base of talented local crews, film and television productions from around the world are pouring money directly into New Mexico communities, supporting our small businesses and create jobs. for thousands of New Mexicans.”
While Hollywood’s spending in New Mexico is booming, it’s still a long way from other major production hotspots. In 2021, Georgia saw $4 billion in direct spending from the entertainment industry — up from $2.2 billion in 2020 and $2.9 billion in 2019. The state has no cap on its tax credit program, giving $1.2 billion in 2021. way to Hollywood. California, which has a $660 million cap, hit similar levels, with the industry accounting for $2.6 billion in direct spending last year.
The neighboring state of Arizona raised the limit for its movie and TV tax incentive program to $75 million on July 6, citing its desire to compete with New Mexico in drawing productions. By 2025, it will grow to $125 million.