The New Mexico tax credit has generated an estimated $1.37b economic output in just two years, according to a study commissioned by the New Mexico Film Office (NMFO) covering the fiscal year 2020 to 2021.
Overall, it reported the New Mexico film tax credit had delivered strong economic benefits to the state across all key metrics.
In addition to the $1.37b economic output across two years, data generated disclosed an economic return on investment (ROI) of 8.4, where for every $1 invested through the program, the state’s economy is benefitted by $8.40.
Meanwhile, for 92% of productions in New Mexico, the incentives up for offer in the state was the most important factor identified by decision-makers when choosing where to produce projects. Only a total of 8% of total productions would have existed in New Mexico without the film incentive.
“The film and television industry is one of the nine key sectors the economic development department is focused on in our efforts to diversify the state’s economy. The industry provides millions of dollars to the economy, thousands of jobs, and puts New Mexico on the map as a place to live and work, and even travel to for those interested in film tourism,” New Mexico economic development cabinet secretary Alicia J. Keyes said. “This study dives into the numbers and proves what we have been saying all along about the industry and why we continue to push this forward as a key to New Mexico’s future.”
New Mexico offers a 25-35% refundable tax credit on eligible spending in the state with an annual budget cap set at $110m. NMFO previously announced in the fiscal year 2021, despite the global shutdown of production due to the COVID-19 pandemic, that the state delivered a record-breaking estimated $623.8m in direct spending by film and television productions in New Mexico.
Amber Dodson, director of the New Mexico Film Office, adds: “The findings of this study prove the success and importance of the film incentive and the immense economic benefit this surging industry has on New Mexico. The film industry injects hundreds of millions of outside dollars into New Mexico’s economy every year, supports thousands of jobs, creates revenue streams for local businesses, and generates opportunity and prosperity while improving the overall quality of life for New Mexicans,”
Also, hit series such as Breaking Bad and Better Call Saul shot in Albuquerque and Santa Fe have pointed to farther-reaching effects on tourism for the state.
Check out our feature with the Top 8 reasons to film in New Mexico