Santa Fe - Today, the New Mexico Film Office released the final Phase 1 report of a study on the economic impact of the state's film incentive program. The study finds that New Mexico continues to be among the most competitive, well-established states in the nation for the production of film and television programs, and production activity produced an estimated $0.43 in state and local taxes per dollar of incentive spending between FY2010 and FY2014.
The study also found that the average annual salary of New Mexico resident labor is $52,723. Direct employment over that period is estimated at 8,851 full-time positions, with another 6,997 positions generated through indirect or induced spending. The net cost for each job created in New Mexico from film production is approximately $8,519. In addition, gross state product (GSP) generated by production activity during the study period is roughly $740 million, with an additional $229 million coming from indirect and induced economic impacts.
The study also included a survey of industry representatives, in-state and nationally, about their views on New Mexico's suitability for film and television production. Responses were overwhelmingly positive, with those surveyed pointing to a number of factors that drew them to the state, including New Mexico's proximity to Los Angeles, its varied and attractive landscapes, its trained and experienced workforce, and its film incentive program. In particular, the industry is optimistic and encouraged by the recent increase in the incentive rate for television and other qualifying productions, passed during the 2013 legislative session and signed by Governor Martinez as part of a bipartisan job-creation and tax reform package designed to diversify the state's economy and make New Mexico more competitive.
"In New Mexico, we need an economy that is as diverse as our people and the land we call home," said Governor Susana Martinez. "We continue to have a strong incentive program, with increased predictability and stability in our state budget, and we are fighting to build a more competitive, diverse economy in every corner of the state. New Mexico has so much to offer to those who are in the business of searching for the right place to shoot a movie or television program, and our communities clearly benefit from these opportunities."
The study was conducted by MNP LLP, and was sponsored or assisted by a multi-agency team, including the New Mexico Film Office, Economic Development Department, Department of Finance, and Administration and Taxation and Revenue Department. In the coming years, additional phases of this study will examine other specific areas, including infrastructure spending and tourism relating to the film industry in New Mexico. The full report can be viewed here.
"I appreciate the work of all those who helped to conduct such a sweeping study of the impact of filmmaking on our economy," concluded Nick Maniatis, the Director of the State's Film Office. "New Mexico is clearly a top-notch location for film and TV production, and the results of this study show the important, positive role that this industry plays in communities throughout the state."