Economic Impact Study of New Mexico’s Film Incentive Programme

Client: New Mexico Film Office

Location: New Mexico, US

Commissioned by the New Mexico Film Office, in partnership with the New Mexico Economic Development Department, this study calculated the economic impact of the New Mexico Film Production Tax Credit programme for fiscal years 2020 through 2021.

The evaluation covered standard economic impact measures, including Gross Value Added (GVA) and economic RoI, the effects of the incentivised activity on the film and television production supply chain, the geographic impact of in-state production spending, and the effects on tourism in the state.

Key findings of the study found the incentive programme:

• Delivered an economic output of $1.39 billion over the two-year period

• An economic return on investment (RoI) of 8.4, showing that for every $1 invested through the incentive programme, the state’s economy benefitted by $8.40

• Was the most important factor identified by decision-makers when choosing where to produce their projects, with only 8% of total productions would have taken place in New Mexico without the tax credit.

If you would like to hear more about this study, please email SPI Consultant Joshua Dedman on joshua@o-spi.com.

Further information on SPI’s impact studies can be found here.