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Wednesday, February 03, 2010
Senator Wants Cap on Film Rebates
By Dan Mayfield
Journal Staff Writer
SANTA FE — Just as the film industry dodged a bullet, a new bill has been introduced that, many say, could derail the business.
Sen. John Arthur Smith, a Deming Democrat, has for the past three years proposed capping the benefits of the state's film industry incentive program. This year, he's submitted a bill that he said would save the state money by capping the money individual movie productions could receive from the program.
"I think this is a message bill that can be argued and debated," Smith said.
Gov. Bill Richardson has vowed to veto any bill that threatens the program.
Since 2003, the New Mexico Film Office said in a news release, more than 130 major film and television productions have been made in New Mexico, with an estimated economic impact of $3 billion. The program, among other things, rebates up to 25 percent of a film's New Mexico expenses.
But Smith said he's not sure the program is making money for the state.
Studies done in New Mexico and in other states with similar programs vary widely on the economic impact of film productions. The Governor's Office frequently quotes a study that says the state sees a significant amount of economic impact because of the industry.
"Obviously," Smith said, "you get into the debates of the studies. They're extremes."
Smith's bill (SB235) proposes to cap the rebate for any individual film's production at $2 million and its post production at $2 million.
Last year, the state rebated about $80 million to film companies that made movies in New Mexico. This year, however, that figure is expected to be far less.
"I'm trying to maintain the same industry by spending fewer dollars," Smith said.
The head of the state film workers union, Jon Hendry, said a cap on benefits from the program would scare away producers and, ultimately, kill the industry in New Mexico.
A $2 million cap, Hendry said, would mean that any film that spends more than $8 million in the state would tap out its available rebate funds.
"Everything under $10 million is low-budget in New Mexico. If they're only going to get to work on low-budget movies, they're going to leave the state," Hendry said.
Low-budget films work under different union rules and pay crew members far less.
"You're saying to (crew members) you'll only get the low-budget movies," Hendry said.
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