Producers of the western movie “Rust” are facing financial challenges as they try to secure a tax credit worth up to $1.6 million from New Mexico tax authorities. The denial of the tax credit has disrupted financial arrangements, including a legal settlement with the family of cinematographer Halyna Hutchins, who was fatally shot by Alec Baldwin during the film’s rehearsal in 2021. The tax credit was intended to help finance the settlement between the producers and Hutchins’ widower and son. Producers are now facing the possibility of having to forgo the tax credit, which could impact the completion and distribution of the film. Baldwin is scheduled to go on trial next week on an involuntary manslaughter charge in connection with Hutchins’ death.
The denial of the tax credit has raised concerns about the future of the film industry in New Mexico, which offers generous incentives to attract movie projects. The state’s film incentive program offers rebates of up to 40% on expenditures to encourage movie projects, employment, and infrastructure investments. The denial of the tax credit for “Rust” could have a chilling effect on the local film industry and impact future productions in the state.
The financial implications of the tax credit denial and Baldwin’s trial have raised questions about the oversight of the film incentive program in New Mexico. State officials are under pressure to review tax credit applications based on legal and accounting principles to ensure taxpayer funds are being used appropriately. Producers of “Rust” are now facing uncertainty as they try to sell the film to distributors and navigate the legal and financial challenges surrounding the tragic incident on set.
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