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New Mexico has quickly become a Hollywood staple for innumerable film and television productions thanks to its generous state tax incentives. Producer’s can expect to capture between 25% and 35% in tax credits for filming in the state.
A new report by Olsberg SPI, a U.K. based consultant, illustrates through sheer statistical evidence just how popular the incentive is and how beneficial the program has been for the local economy.
Over the past two years, the firm found that for every 1 tax dollar spent on incentives, the economy received approximately $8.40 back. Over the last fiscal year, thanks to New Mexico productions, a total economic impact of $933 million resulted from wages paid to over 8,000 employees and spending on local production services, vendors and more.
Consultants at Olsberg SPI concluded that a majority of New Mexico production was thanks to the tax credit. Without it, “92% of the activity wouldn’t happen,” said Olsberg economist and senior consultant Eleanor Jubb.
The study confirms that the return on investment is significant. New Mexico’s Deputy Secretary for Economic Development and a former economist, Jon Clark, expressed his satisfaction with the state tax incentives, it’s strong return on investment, and the jobs New Mexico productions create.
Read the full story here.
