Producers of 'Rust' Movie Denied New Mexico Film Incentive After Fatal Shooting by Alec Baldwin

In Santa Fe, New Mexico, the producers of the movie "Rust" are facing the possibility of losing a significant economic incentive as they navigate the aftermath of a tragic incident where a cinematographer was fatally shot by Alec Baldwin during rehearsal in 2021. The production company is currently in the process of trying to sell the film to distributors while also addressing financial obligations to the family of the deceased cinematographer. A deadline in late July looms for the producers to appeal a decision regarding the use of a film production tax incentive to settle legal matters with the family. Court documents reveal that settlement payments to the widower and son of the cinematographer are significantly delayed, prompting discussions among legal representatives about potential next steps, including the possibility of resuming wrongful death litigation or pursuing new claims. The denial of the film's tax incentive application could have broader financial implications for New Mexico taxpayers, as the state's film incentives program offers substantial rebates to attract movie projects and stimulate economic activity in the region. The New Mexico Film Office had previously approved eligibility for "Rust" to apply for the tax incentive, a process that involves thorough financial vetting and compliance with accounting standards. However, the recent denial of the application has raised concerns about the impact on the local film industry and the confidence in the tax program. Industry professionals emphasize the importance of upholding legal and accounting principles in reviewing such applications to avoid losing major projects to other states. The debate surrounding the film's tax incentive application comes amidst a backdrop of increasing film rebate payouts in New Mexico, with records indicating a rise from $100 million in the fiscal year ending in June 2023 to an expected $272 million by 2027. Democratic state Sen. George Muñoz has raised questions about the incentive program and whether taxpayers should bear the burden of unforeseen expenses, underscoring the ongoing scrutiny and complexities surrounding film industry incentives in the state.