New Mexico tries to streamline payment of film, TV rebates
New Mexico will attempt to streamline the way it verifies in-state spending by film production companies as it prepares to provide as much as $165 million a year in rebates.
The Taxation and Revenue Department on Thursday announced the creation of a voluntary certification process for film-industry vendors and contractors that ensures work is eligible for the tax credit.
New Mexico’s high plains and desert vistas have served as a backdrop for films and TV shows that include Breaking Bad, Better Call Saul and the upcoming film The Goldfinch.
The state offers rebates of up to 35 percent to video productions for in-state spending and employment of state residents.
Legislators and Gov. Michelle Lujan Grisham this year increased the annual cap on film credit payouts to $110 million in an aggressive play for a bigger piece of industry work.
They also eliminated a cap for companies such as Netflix and NBCUniversal that have longterm business activities in the state.
The financial commitment has been accompanied by concerns about whether jobs and other needs are indeed being fulfilled by the state workforce.
The state previously established a complaint hotline and possible two-year suspension from the rebate program for false applications.
The new program will create an online list of qualified vendors that volunteer to participate.
Taxation officials will verify those businesses have a physical presence in New Mexico and are up-to-date on tax obligations. Certification is valid for two years.
“This new program will assure that business owners who live and work in New Mexico gain the benefits from our investments in the film industry,” Economic Development Secretary Alicia Keyes said.
At a legislative hearing in June, Keyes acknowledged that the state “needs to do better in terms of catching bad actors, in the sense of people who are saying that they live here but they don’t live here and they’re actually living in their RV.”
The certification system also aims to make it easier to ensure compliance with tax filings.