SANTA FE – Officials say New Mexico’s debt to the film industry could hit $250 million by summer and reach $700 million in four years.
The Albuquerque Journal reports Jon Clark, chief economist for the Legislative Finance Committee, told state lawmakers Monday that New Mexico is on track to reach a “breaking point” eventually under the current system, which offers movie companies a 25 percent tax rebate but limits the state’s annual payout to $50 million.
The state is reaching the limit each year, running up an unpaid tab of film incentives.
No consensus emerged Monday on how to address the cost.
Clark says it would take the state 14 years at $50 million annually to pay off a $700 million backlog.