SANTA FE, N.M. (AP) — The budget and accountability office of New Mexico’s Legislature is cautioning that the cost of film tax credit payments to producers such as Netflix could grow quickly and unpredictably in coming years.
A Legislative Finance Committee report on Tuesday said preliminary estimates indicate that new production commitments by Netflix, announced in November, could increase annual tax credit payouts by $25 million beginning next fiscal year.
The state expects to pay out nearly $100 million in film production tax credits in the coming fiscal year, starting in July 2021, and $147 million the following year. Budget analysts say costs to taxpayers could quickly grow further through partnerships with the film industry.