The New Mexico Film Office announced the updated economic impact study results demonstrating the significant economic return on investment generated by the New Mexico Film Production Tax Credit.
The study, completed by the New Mexico Film Office, found that the tax credit produced an average economic ROI of 7.77 for the state from fiscal year 2020 to fiscal year 2023. This means that for every dollar invested in the tax credit, the state received $7.77 in economic benefit.
Key findings include:
- Total economic output: The tax credit generated an estimated $3.8 billion in total economic output in New Mexico from FY2020 to FY2023. Total economic output includes direct, indirect and induced impacts, which account for such things as uplift activity in the supply chain and induced effects from production wages.
- High-paying job creation: The tax credit supported approximately 8,000 full-time equivalent jobs in the state. In FY2023, the median hourly wage for full-time New Mexico crew members was $35.51 per hour, whereas the median wage in New Mexico for all industries was $19.19 per hour, and the New Mexico minimum wage as of 2022 is $12 per hour.
- Production growth: The overall number of productions accessing the incentive grew from 78 in FY20 to 109 in FY22, and despite the strike interruptions, it still finished at 83 in FY23.
Along with this production increase, the average New Mexico spend per project in FY20 was $3.8 million. By fiscal year 2023, it reached $9.7 million, indicative of larger, more robust productions choosing New Mexico as their location.
The study also found that the tax credit positively impacts rural communities in New Mexico. Rural production spending increased from $4.5 million in FY2020 to $6.5 million in FY2021, reached a new record of $49.5 million in FY2022, and even hit $21.2 million amidst industry strikes in FY2023.
“This study provides clear evidence that the New Mexico Film Production Tax Credit is a valuable investment for our state,” Amber Dodson, director of the New Mexico Film Office, said. “The tax credit generates significant economic benefits. It supports 8,000 jobs, high wages and expansive investment in our businesses and communities.”
“Rez Ball,” an inspirational sports drama from Netflix produced by LeBron James, began filming in and around Rio Rancho, Albuquerque, Shiprock, Belen, Los Lunas, Estancia, Santa Fe and the Navajo Nation, with the permission and support of local governments and sovereign tribal nations, through May.
Some of the filming in Rio Rancho took place at Lincoln Middle School, where the gym was transformed. That production employed nearly 3,000 New Mexicans — 180 crew members and 2,737 background talent.