New Mexico state representative, Antonio Maestas, is sponsoring House Bill 113, which is trying to remove the annual cap of $50 million on tax credits available to filmmakers. The cap, which was implemented back in 2011, is seen as detrimental to New Mexico’s film industry, according to the lawmaker.
Maestas presented House Bill 113 to the House Labor and Economic Development Committee on Wednesday, January 24th. The same afternoon, the bill was passed by a vote of 6-5, and it is moving onto the next committee for further review.
The representative presented the legislation as an opportunity to continue supporting the booming film industry in New Mexico, emphasizing the creation of jobs in the movie and television departments. Furthermore, Maestas believes that local small businesses will find themselves benefitted as well, due to contracting opportunities with the film industry.
Although supported by the committee, the bill has encountered some opposition in other legislators. Fellow state representative, Rod Montoya, raised his concern during the meeting, calling House Bill 113 a “budget buster.” The Fiscal Impact Report backed his preoccupation, as the lack of a cap could have a negative impact on the General Fund.
Antonio Maestas was not discouraged by the opposition, and will continue working with committees to present numbers that support his view of how the lack of a cap would pay for itself in terms of gross receipts (GRT) tax.
Source: KOB – Lawmaker Seeks End Cap On Film Tax Credit