New Mexico bet on the wrong horse…again (the film industry goes bust)
Since the days of the Richardson Administration the Rio Grande Foundation has opposed the State’s film subsidies. Under Bill Richardson the subsidy was 25% of film expenses (thus Hollywood could receive up to 25% of the costs of operating in New Mexico).
That spending was capped under Susana Martinez at $50 million in annual spending. But, when MLG was elected she immediately cut Hollywood a check for $300 million and (along with the Legislature) expanded the subsidy program up to 40% of film expenses.
Now, due to a collapsing film industry (filming in New Mexico has fallen from $740 million annually down to $323 million from July 2024 to June 2025) the owners of Santa Fe Studios are looking to sell.
Sadly, while New Mexico will actually save money due to the decline in Hollywood filming with the massive subsidy, Santa Fe studios received subsidies above and beyond the State’s 40% credit. According to the Santa Fe New Mexican, the “Studios received a $10 million grant…from the state, and (Santa Fe) County kicked in another $3.6 million worth of infrastructure improvements for the project. It also is guaranteeing $6.5 million worth of a $10 million loan the studio’s principals secured from Los Alamos National Bank.”
That’s in addition to a $22 million Industrial Revenue Bond (IRB) which exempted the facility from property taxes.
That’s a lot of money. But, New Mexico continues to pump money into other film-related programs like $40 million for the Next Generation Media Academy and millions of additional dollars supporting various film programs through the corporate welfare “LEDA” program.
Industry insiders question whether the Industry will ever recover or whether this is a “new normal” for the Industry. Only time will tell. But, rather than going all out to attract one industry, New Mexico’s political leaders should be focused on making the State an attractive destination for businesses of all kinds with low taxes and reasonable regulations.
