Netflix's move to Albuquerque spurs talk about state's film tax incentive cap
October 09, 2018 06:32 PM
ALBUQUERQUE, N.M. - The fight over what to do about New Mexico’s film tax incentive cap is ramping up after Netflix announced it would be buying ABQ Studios.
Currently, the state has a $50 million annual incentive cap for the film industry. However, some say now that a major player in media production has moved in, it’s time to remove the cap.
“The cap hurts business here in New Mexico," said State Representative Antonio Maestas.
Maestas said the cap, particularly, hurts smaller film companies that might have to wait a year to receive incentive money. He’s planning on introducing legislation to remove the cap completely.
But, Governor Susana Martinez praised the incentive cap as a reason they were able to land Netflix.
“Thirteen other states have actually closed their incentive programs because it was open-ended and it would fluctuate," said Governor Martinez.
Governor Martinez said with no cap, the amount of tax incentives would fluctuate, causing turmoil.
“That means you'd have to cut from someplace else, whether it be law enforcement whether it be public safety, Medicaid, school and you don't want to do that,” Martinez said.
But, not everyone sees it that way.
“The way the governor treats the cap is as an expenditure as if the state is writing a $50 million check. That's not true.” Maestas said. He said it should viewed as an investment, not just an expense.
Democratic candidate for governor Michelle Lujan Grisham would be in favor of raising the cap or eliminating it altogether.
Republican candidate for governor Steve Pearce said he’d be in favor of raising the cap.
Created: October 09, 2018 06:32 PM
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