{"id":192508,"date":"2016-10-03T21:09:37","date_gmt":"2016-10-04T03:09:37","guid":{"rendered":"http:\/\/nmpolitics.net\/index\/?p=192508"},"modified":"2016-10-03T21:09:37","modified_gmt":"2016-10-04T03:09:37","slug":"bill-would-cut-back-film-production-tax-credit-for-one-year","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2016\/10\/bill-would-cut-back-film-production-tax-credit-for-one-year\/","title":{"rendered":"Bill would cut back film production tax credit for one year"},"content":{"rendered":"<div id=\"attachment_56542\"  class=\"wp-caption module image alignnone\" style=\"max-width: 771px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-56542\" src=\"http:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse-771x504.jpg\" alt=\"A statue outside the Roundhouse in Santa Fe.\" width=\"771\" height=\"504\" srcset=\"https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse-771x504.jpg 771w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse-336x220.jpg 336w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse-768x502.jpg 768w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse-1170x764.jpg 1170w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/06\/Kids-at-Roundhouse.jpg 1500w\" sizes=\"auto, (max-width: 771px) 100vw, 771px\" \/><p class=\"wp-media-credit\">Heath Haussamen \/ NMPolitics.net<\/p><p class=\"wp-caption-text\">A statue outside the Roundhouse in Santa Fe.<\/p><\/div>\n<p>The State of New Mexico would cut back its film production tax credit for a year under a bill endorsed <span class=\"aBn\" data-term=\"goog_1544666313\"><span class=\"aQJ\">Monday<\/span><\/span> by a House committee \u2014 even though film industry representatives said the move could drastically reduce the number of movies and television shows made in New Mexico.<u><\/u><u><\/u><\/p>\n<p>The House Ways and Committee voted along party lines to give a do-pass recommendation to <a href=\"https:\/\/nmlegis.gov\/Legislation\/Legislation?chamber=H&amp;legType=B&amp;legNo=15&amp;year=16s\" target=\"_blank\">House Bill 15<\/a>, sponsored by Rep. Rod Montoya, R-Farmington. The measure would cut in half the annual cap for all credits paid to film production companies in the fiscal year that began <span class=\"aBn\" data-term=\"goog_1544666314\"><span class=\"aQJ\">July 1<\/span><\/span>. The current limit is $50 million.<u><\/u><u><\/u><\/p>\n<aside class=\"module align-left half type-aside\">\n<h3>About this article<\/h3>\n<p>This article comes from <a href=\"http:\/\/www.santafenewmexican.com\/\" target=\"_blank\">The Santa Fe New Mexican<\/a>. NMPolitics.net is paying for the rights to publish articles about the 2016 special legislative session from the newspaper. Help us cover the cost by\u00a0<a href=\"http:\/\/nmpolitics.net\/index\/donate\/\" target=\"_blank\">making a donation to NMPolitics.net<\/a>.<\/p>\n<\/aside>\n<p>The incentive program provides a 25 percent rebate to film companies for most in-state expenditures. Since 2013, producers of television series have been allowed to deduct 30 percent of the money they spend in the state.<u><\/u><u><\/u><\/p>\n<p>&#8220;All we\u2019re looking to do is to defer payment for one year,\u201d Montoya told the committee.<u><\/u><u><\/u><\/p>\n<p>But Jon Hendry, president of the New Mexico Federation of Labor, said the move would send the film industry a message that \u201cour word is not our bond.\u201d<u><\/u><u><\/u><\/p>\n<p>Bob Barberousse, a lobbyist for the Motion Picture Association of America, said all major studios have called him to ask him about Montoya\u2019s bill. He said the state of Louisiana, which a few years ago was considered one of the best states for film incentives, passed similar legislation. Since then, film production in that state has dwindled, Barberousse said.<u><\/u><u><\/u><\/p>\n<p>Committee chairman Jason Harper, R-Rio Rancho, said he has friends in the film industry. But he said, \u201cI don\u2019t like [tax] incentives.\u201d He said the state should get rid of incentives while lowering tax rates in general, so the revenue base would be broader. \u201cThat would make us competitive,\u201d he said.<!--more--><u><\/u><u><\/u><\/p>\n<p><span class=\"aBn\" data-term=\"goog_1544666315\"><span class=\"aQJ\">On Saturday<\/span><\/span> the same committee voted to effectively kill a Senate bill that would have delayed for two years scheduled corporate tax cuts. That vote basically was a reversal of <span class=\"aBn\" data-term=\"goog_1544666316\"><span class=\"aQJ\">Monday\u2019s<\/span><\/span> vote on the film bill with Democrats in favor of the bill and Republicans against it.<u><\/u><u><\/u><\/p>\n<p>The generous film incentives were passed under the administration of Gov. Bill Richardson. When he was in office there was no cap on the tax credit.<u><\/u><u><\/u><\/p>\n<p>But when Gov. Susana Martinez took office in 2011, she called for reducing the credit to 15 percent, saying the incentive benefited Hollywood at the expense of New Mexico school children. Eventually, Martinez that year compromised with Democrats, keeping the 25 percent credit but imposing the $50 million cap.<u><\/u><u><\/u><\/p>\n<p>In 2013, Martinez signed a measure called the \u201cBreaking Bad Bill\u201d \u2014 named for the television series that filmed in Albuquerque for seven years \u2014 which raised the deduction for producers of TV series.<u><\/u><u><\/u><\/p>\n<p>Martinez did not take a position on Montoya\u2019s bill.<u><\/u><u><\/u><\/p>\n<p>HB 15 now goes to the House floor.<u><\/u><u><\/u><\/p>\n<p><em>Contact Steve Terrell at 505-986-3037 or <a href=\"mailto:sterrell@sfnewmexican.com\" target=\"_blank\">sterrell@sfnewmexican.com<\/a>. Read his political blog at <a href=\"http:\/\/tinyurl.com\/roundhouseroundup\" target=\"_blank\" data-saferedirecturl=\"https:\/\/www.google.com\/url?hl=en&amp;q=http:\/\/tinyurl.com\/roundhouse&amp;source=gmail&amp;ust=1475636495833000&amp;usg=AFQjCNFjpvD_37grVN8VpoUIt7L5kSk5Yg\">tinyurl.com\/roundhouseroundup<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The measure would cut in half the annual cap for all credits paid to film production companies in the fiscal year that began July 1. The current limit is $50 million.<\/p>\n","protected":false},"author":1,"featured_media":56542,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[3305,196,107],"class_list":["post-192508","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-2016-special-session","tag-budget","tag-roundhouse"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/192508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=192508"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/192508\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media\/56542"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=192508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=192508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=192508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}