After a compromise on film incentives stalled inside the Capitol on Friday, and then nearly sputtered out on Saturday, movie makers may be feeling a little better about their ability to continue filming their projects in New Mexico.
That’s because members of the House Tax and Revenue committee reached a consensus agreement on Speaker Ben Lujan’s HB607 substitute bill, which keeps the 25 percent subsidy for production companies in tact, but limits the state’s annual obligation to $45 million.
When lawmakers left the hearing on Friday evening the annual aggregate was capped at $60 million, but Republicans thought they could trim it another $20 million.
And they almost got there.
After picking up picking up a single Democratic vote from Rep. Sandra Jeff, they lost House Minority Leader Tom Taylor’s initial support.
Taylor had been the bill’s co-sponsor, but announced at the start of Saturday’s hearing that he had withdrawn his name from the bill. After public comments Taylor walked out of the room when it came time for him to register his vote on Roch’s proposed $40 million cap.
With Taylor gone the measure failed on a 7-7 tie vote.
Following an hour long recess, and more behind the scenes negotiations, Roch agreed to modify his amendment and upped the cap to $45 million. It quickly received support from all 15 members of the committee –including Taylor — and received a do pass recommendation. It will now be considered on the House Floor.
“This allows New Mexico to continue to support the thriving film industry and honor our priorities,” Rep. Roch said. “I’m glad they’re going to be part of our vibrant economy.”
Analysts from the Legislative Finance Committee say the new caps will free up $25 million, which Gov. Martinez plans to spend on priority medicaid, education and correction programs.
Taylor told KUNM he could not vote for the first amendment because it didn’t meet his “financial objectives.” But, after voting for the final amendment, Taylor said, “This compromise recognizes the film industry is vital to New Mexico while still making room for our highest budget priorities.”
It’s unclear if the Governor, who has said that she wanted the film subsidy reduced from 25 percent to 15 percent, supports the committee’s substitute bill.
