Welcome to ‘Tamalewood!’ Major studios, including Netflix and NBCUniversal, flee California in favor of New Mexico to take advantage of a 35% tax break
- A 35% tax incentive has reportedly brought $623 million to New Mexico this year through the entertainment industry
- Major production studios, including Netflix and NBCUniversal, have built studios in Albuquerque over the past year and have signed production deals for the next decade.
- Netflix’s Albuquerque lot is the company’s premier North American location and one of the largest movie production complexes in the country
- Projects including Stranger Things and Barb and Star Go to Vista Del Mar moved production from Georgia to New Mexico
- Secretary of State for Economic Development Says They See Their Earnings Hit ‘All-Time Records’
- New Mexico also plans to invest another $38 million to boost manufacturing migration
Hollywood flees California in favor of New Mexico, tempted by the state’s 35 percent tax breaks and relaxed COVID-19 restrictions.
The fiscal stimulus this year has already raised $623 million in the Land of Enchantment—or Tamalewood as locals called it.
Netflix and NBCUniversal have both built production studios in New Mexico this year after signing deals a few years ago. Netflix has signed a $2 billion deal to produce content in the state over the next ten years, while NBCUniversal has committed to a $500 million deal.
Netflix’s desert plateau southeast of Mesa Del Sol with 10 new sound stages and training facilities is now the company’s premier North American location and one of the largest film production complexes in the country.
Netflix Signed a $2 Billion Deal to Produce Content in New Mexico Mexico for the Next Decade
NBCUniversal also built a studio in Albuquerque, New Mexico last year
Among other things, The Land of Enchantment offers a 35% tax incentive to the entertainment industry
The manufacturing company couldn’t pass up everything New Mexico had to offer, including $10 million from local funds for the Local Economic Development Act (LEDA), $4.5 million from the city in 2018, another $17 million from the state and $7 million from the city in 2020, plus ongoing tax credits for filming that grows as the company speeds up production and unlimited allowances for each shot, according to Bloomberg.
The Santa Fe Film Office, established in the summer of 2016, announced that there were 23 productions in fiscal year 2017, 49 productions in fiscal year 2018, and 73 productions in fiscal year 2019, which ran from July 2018 to June 2019.
According to the New Mexico Department of Economic Development, 26 film, 24 television and 19 other media projects were produced in 2020 despite the pandemic.
In March, it was announced that 20 productions were underway in Albuquerque, with some shows like Stranger Things and movies like Barb and Star Go To Vista Del Mar even switching locations to take advantage of the cash appeal.
Both projects were originally filmed in Georgia, which began offering tax breaks to the entertainment industry in 2005, but is now surpassed by New Mexico’s offerings.
The entertainment industry brought $623 million to the state this year
Jennifer LaBar-Tapia, film liaison at the Santa Fe Film Office, told the Albuquerque Journal last year, ‘Every year we’re in this upswing and the movie industry is this word of mouth, so when productions come here and have a good experience, they come back, or they tell their counterparts in other studios or other people in the film industry about their coming to Santa Fe.’
The state has also announced that it expects to invest an additional $38 million to boost migration to Tinseltown, the state said. Fox.
Secretary of State for Economic Development Jeff Flock told Fox the state is now seeing their revenues hit “all-time records.”
Studios may also have been tempted by the looser COVID-19 restrictions after California imposed some of the strictest lockdown rules in the US — and as several California counties begin to reintroduce mask mandates.