SENATE MEMORIAL 89

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Pete Campos

A MEMORIAL

CELEBRATING THE SUCCESS OF THE FILM INDUSTRY IN NEW MEXICO.

     WHEREAS, in 2018, New Mexico commemorated one hundred twenty years of film production in the state, beginning with the Thomas A. Edison company's 1898 filming of Indian Day School in the New Mexico territory; and

     WHEREAS, also in 2018, the New Mexico film division of the economic development department, also known as the New Mexico film office, celebrated the fiftieth anniversary of its founding by then-Governor David Cargo; and

     WHEREAS, New Mexico established the first state film office in the United States; and

     WHEREAS, film and televison production continue to flourish in New Mexico; and

     WHEREAS, New Mexico has experienced an unprecedented boom in film and television production because of the state's competitive incentives, talented crew both behind and in front of the camera and robust infrastructure; and

     WHEREAS, New Mexico also boasts unique architecture, varied landscapes, breathtaking vistas and mystical skies and more than three hundred days a year of sunshine; and

     WHEREAS, the New Mexico film industry has made a significant impact on the economic vitality of New Mexico; and

     WHEREAS, the film industry has created high-wage jobs for skilled technical crew, business opportunities for local vendors and investment opportunities; and

     WHEREAS, New Mexico boasts the largest film crew base between the east and west coasts; and

     WHEREAS, New Mexico's current film and television production incentive offers a refundable tax credit of up to thirty percent on qualified in-state expenditures, making it competitive with other popular film hubs such as Georgia and Louisiana; and

     WHEREAS, New Mexico's incentive program has a fifty million dollar ($50,000,000) annual rolling cap, and if a production has a credit approved after the program exceeds the annual cap, the payment rolls over to the next fiscal year; and

     WHEREAS, the incentive program has been credited for attracting big-budget films such as The Avengers, Thor and academy-award winning No Country for Old Men, as well as popular television series Breaking Bad, Longmire and Better Call Saul; and

     WHEREAS, the New Mexico film office serves the film and television industry locally, nationally and internationally; and

     WHEREAS, the purpose of the New Mexico film office is to market the state to the film industry, service New Mexico productions and promote jobs for New Mexicans; and

     WHEREAS, a New Mexico film office report produced by the economic development department, dated February 4, 2019, states that the New Mexico tax credit has brought three billion forty-four million dollars ($3,044,000,000) into the state, and that is money that would not have been in New Mexico's economy otherwise; and

     WHEREAS, the New Mexico film office report states that, after deducting qualified expenditures from funds directly spent, the amount not qualifying for a rebate for fiscal year 2015 through fiscal year 2017 was almost three hundred eighty-three million dollars ($383,000,000); and

     WHEREAS, for fiscal year 2015 through fiscal year 2017, state and local governments received almost ninety-four million dollars ($94,000,000) in personal income taxes and gross receipts taxes, according to the New Mexico film office report; and

     WHEREAS, the New Mexico film office estimates that for every dollar spent, sixty nine and eight-tenths cents ($.698) actually qualifies for a rebate; and

     WHEREAS, from 2014 to 2017, the state went from eighteen projects with budgets of one million dollars ($1,000,000) or more to fifty-two projects; and

     WHEREAS, in October 2018, Netflix purchased Albuquerque studios, which provides additional opportunities for expansion of film industry options; and

     WHEREAS, MovieMaker magazine showcased Albuquerque in its January 2019 issue as a marquee player, hosting the Nicole Kidman drama The Goldfinch as well as the Amazon series Too Old to Die Young; and

     WHEREAS, Santa Fe studios provides world-class soundstages where the Joel and Ethan Coen film The Ballad of Buster Scruggs and the television series Roswell were filmed; and

     WHEREAS, Albuquerque and Santa Fe are the premier locales for production with their film studios, but rural and native communities throughout the state have seen substantial production spending; and

     WHEREAS, the New Mexico film office report states that in 2017, forty rural communities had film or television production in their vicinities and millions of dollars were spent in local economies; and

     WHEREAS, an additional benefit New Mexico reaps from film and television production is increased tourism; and

     WHEREAS, the New Mexico film office report cites statistics that the New Mexico tourism industry is one of the state's largest employers and employs over one hundred thousand people, bringing in six billion six hundred million dollars ($6,600,000,000) in revenue annually and paying six hundred sixty million dollars ($660,000,000) in state and local taxes; and

     WHEREAS, the film industry in New Mexico also presents an opportunity for students to find high-wage jobs without leaving the state, and there are twenty-three film, television and media programs offered in New Mexico; and

     WHEREAS, the film industry also diversifies New Mexico's economy and is immune to economic downturn; and

     WHEREAS, in her January 1, 2019 inaugural address, Governor Michelle Lujan Grisham expressed strong support for the film industry and promised to "take the shackles" from New Mexico's film industry; and

     WHEREAS, one of the issues legislators will be debating this session is whether or not to remove the rebate incentive cap; and

     WHEREAS, studies under New Mexico's previous two governors measuring the economic impact of the film industry in New Mexico found that the film industry was tremendously beneficial to the state, according to Eric Witt, executive director of the Santa Fe film office;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the success of the New Mexico film industry and its potential to further enrich the state be recognized and applauded; and

     BE IT FURTHER RESOLVED that the future of the film industry in New Mexico be supported this legislative session; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor and the acting director of the New Mexico film office.

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