New Mexico

New Mexico denies film incentive on ‘Rust’ after fatal shooting by Alec Baldwin

Published

2 years ago

July 3, 2024

Press Room

New Mexico denies film incentive on ‘Rust’ after fatal shooting by Alec Baldwin

Alec Baldwin. Image: Charles Sykes/Invision/AP

SANTA FE, New Mexico — Producers of the Western movie “Rust” may have to forgo a robust economic incentive as they try to sell the film to distributors and fulfill financial obligations to the immediate family of a cinematographer who was fatally shot by Alec Baldwin during a rehearsal in 2021.

New Mexico tax authorities denied an application this spring by Rust Movie Productions for incentives worth as much as $1.6 million, according to documents obtained by The Associated Press. A late July deadline for producers to appeal the decision is approaching.

Meanwhile, Baldwin is scheduled to go on trial starting next week on an involuntary manslaughter charge in Halyna Hutchins’ death. The lead actor and co-producer of “Rust” was pointing a gun at Hutchins when it went off, killing her and wounding director Joel Souza.

Melina Spadone, an attorney representing the production company, said the film production tax incentive was going to be used to finance a legal settlement between producers and Hutchins’ widower and son.

“The denial of the tax credit has disrupted those financial arrangements,” said Spadone, a New York- and Los Angeles-based senior counsel at Pillsbury Winthrop Shaw Pittman. She helped broker the 2022 settlement that rebooted the stalled production of “Rust” in Montana with some of the original cast and crew, including Baldwin and Souza. Filming wrapped up last year.

Terms of the settlement are confidential, but producers say finishing the film was meant to honor Hutchins’ artistic vision and generate money for her young son.

Court documents indicate that settlement payments are up to a year late, as attorneys for Hutchins’ widower determine “next steps” that include whether to resume wrongful death litigation or initiate new claims. Legal representatives for Matthew Hutchins did not respond to telephone and email messages seeking comment.

The prosecution of Baldwin and the film’s tax incentive application both have financial implications for New Mexico taxpayers. The Santa Fe district attorney’s office says it spent $625,000 on “Rust”-related prosecution through the end of April.

The state’s film incentives program is among the most generous in the nation, offering a direct rebate of between 25% and 40% on an array of expenditures to entice movie projects, employment, and infrastructure investments. As a percentage of the state budget, only Georgia pays out more in incentives.

Alec Baldwin pleads not guilty to manslaughter charge in 'Rust' shooting

FILE PHOTO: Actor Alec Baldwin departs his home, as he will be charged with involuntary manslaughter for the fatal shooting of cinematographer Halyna Hutchins on the set of the movie “Rust”, in New York, United States, January 31, 2023. REUTERS/David ‘Dee’ Delgado

It includes a one-time option to assign the payment to a financial institution. That lets producers use the rebate to underwrite production ahead of time, often layering rights to the rebate and future movie income into production loans.

Among the beneficiaries of the rebate program are the 2011 movie “Cowboys and Aliens” and the TV series “Better Call Saul,” a spinoff of “Breaking Bad.” As for current productions, New Mexico is the backdrop for a new film starring Matthew McConaughey and America Ferrera about the rescue of students in a 2018 wildfire in the town of Paradise — the most destructive in California’s history.

Charlie Moore, a spokesperson for the New Mexico Taxation and Revenue Department, declined to comment specifically on the “Rust” application, citing concerns about confidential taxpayer information. Applications are reviewed for a long list of accounting and claim requirements.

During a recent 12-month period, 56 film incentive applications were approved and 43 were partially or fully denied, Moore said.

Documents obtained by AP show the New Mexico Film Office issued a memo in January to “Rust” that approved eligibility to apply for the tax incentive, in a process that involves accounting ledgers, vetting against outstanding debts, and an on-screen closing credit to New Mexico as a filming location. Taxation officials have the final say on whether expenses are eligible.

Spadone, the attorney for “Rust,” said the denial of the application is “surprising” and could disrupt confidence in the tax program with a chilling effect on rebate-backed loans that propel the local film industry.

Alton Walpole, a production manager at Santa Fe-based Mountainair Films who was not involved in “Rust,” said he faults the movie’s creators for seemingly cutting corners on safety but officials must review its tax credit application based on legal and accounting principles only — or risk losing major projects to other states. Movies are inherently dangerous even without firearms on set, he noted.

“They’re going to say, ‘Wait, are we going to New Mexico? They could deny the rebate,’” Walpole said. “They’re watching every penny.”

“Popular opinion? I’d say don’t give them the rebate. But legally, I think they qualified for it all,” he said.

Alec Baldwin again charged with manslaughter in 'Rust' movie-set shooting

Actor Alec Baldwin leaves court in the Manhattan borough of New York City, New York, United States, January 23, 2019. REUTERS/Carlo Allegri/File Photo

At least 18 states have enacted measures to implement or expand film tax incentives since 2021, while some have gone in the opposite direction and sought to limit the transferability and refundability of credit.

Under Democratic Gov. Michelle Lujan Grisham, New Mexico has raised annual spending caps and expanded the film tax credit amid a multibillion-dollar surplus linked to record oil and natural gas production. Film rebate payouts were $100 million in the fiscal year ending in June 2023 and are expected to rise to nearly $272 million by 2027, according to tax agency records and the Legislature’s budget and accountability office.

Democratic state Sen. George Muñoz has criticized the incentive program and asked whether taxpayers should be responsible for unforeseen expenses.

“If we’re going to do tax credits and there’s a problem on the film or the set, do they really qualify or do they disqualify themselves?” said Muñoz, chairman of the lead Senate budget-writing committee.

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“Rust” does not yet have a U.S. distributor as producers shop the newly completed movie at film festivals.

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New Mexico

1 dead following shooting involving Rio Arriba County Sheriff’s Office

Published

4 hours ago

June 26, 2026

Press Room

1 dead following shooting involving Rio Arriba County Sheriff’s Office

CHIMAYO, N.M. (KRQE) – A suspect is dead following a shooting involving the Rio Arriba County Sheriff’s Office in Chimayo on Highway 76. Deputies are said to be okay. New Mexico State Police is investigating the shooting.

KRQE News 13 will provide updates as they become available.

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New Mexico

Former NM GOP treasurer arrested after deadly Las Cruces hit-and-run

Published

14 hours ago

June 25, 2026

Press Room

Former NM GOP treasurer arrested after deadly Las Cruces hit-and-run

LAS CRUCES, N.M. (KFOX14/CBS4) — A leader in the New Mexico Republican Party was arrested Wednesday, accused of a deadly hit-and-run in Las Cruces.

Former Treasurer of the Republican Party in New Mexico, Kimberly Ann Skaggs, 54, was arrested Wednesday and charged with leaving the scene and tampering with evidence, jail records show.

Police documents show the charges stem from a deadly hit-and-run crash that happened Monday afternoon, which killed 40-year-old bicyclist, Andrew Brown.

Investigators believed Skaggs was involved after an investigation revealed that Skaggs allegedly was driving fast in the area, fled the scene after the crash and then tried to hide the vehicle from authorities.

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The investigation

According to police documents, a witness at the scene of the crash– 850 N. Fairacres Rd.– described seeing a dark blonde-haired woman flee in a black Cadillac Escalade SUV.

Afterwards, investigators said they saw on Flock cameras– A.I. powered license plate readers– a black Cadillac Escalade traveling near the site of the crash minutes before the incident.

READ MORE: Dona Ana County expands Flock license plate cameras as officials cite crime-solving gains

The license plates showed that the vehicle belonged to Skaggs and that, in September 2025, the Las Cruces Police Department had given her a citation for “racing on streets-exhibition driving.”

Investigators stated that a business on Picacho Ave. captured what they alleged was the same black Cadillac Escalade driving fast.

Then, the documents described how investigators tracked down the Escalade using OnStar’s live GPS tracking, discovering the SUV was at a property on the 5000 block of Northwind Road, which investigators said the Dona Ana County Assessors Office confirmed is a property owned by Skaggs.

On Tuesday, at around 6:41 p.m.– over 24 hours after the deadly hit-and-run– investigators executed a search warrant on the property and described finding the black Cadillac Escalade behind a home, under a red metal carport.

Investigators noted damage on the SUV consistent with the crash, highlighting that there was blood splatter near one of the front tires, markings on the front bumper consistent with hitting a bicycle and parts missing, which investigators said were the same parts found at the scene.

Dona Ana County jail records show Skaggs was booked on Wednesday afternoon and remains jailed without a bond.

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About Skaggs

On the official website of the Republican Party of New Mexico, Skaggs was listed as the treasurer before she was removed.

KFOX14/CBS4 has reached out to the Republican Party to learn more and are waiting for a comment regarding the arrest.

Also, according to election statistics, Skaggs ran for State Representative in District 36 in 2022 and 2024, losing both times to Democrat Nathan P. Small.

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New Mexico

Governor asks AG to investigate DEA agents over fentanyl in New Mexico

Published

1 day ago

June 25, 2026

Press Room

Governor asks AG to investigate DEA agents over fentanyl in New Mexico

SANTA FE, N.M. – Gov. Michelle Lujan Grisham asked Attorney General Raúl Torrez to investigate whether any Drug Enforcement Administration agents broke state law when pills reached New Mexico streets.

In a statement, Lujan Grisham said, “make no mistake: the DEA knew people would die if these pills made it into New Mexico communities.”

The governor also shared a timeline from 2022 to 2025 that she said shows when she asked federal officials for help with New Mexico’s fentanyl crisis and violent crime.

Lujan Grisham said the first request came on June 21, 2022, when she wrote to then-Federal Bureau of Investigation Director Christopher Wray and asked for 50 additional federal agents.

She said she wrote to then-Attorney General Merrick Garland on Sept. 15, 2022, asking for more agents, resources and support for New Mexico law enforcement.

Lujan Grisham said she wrote Garland a second time on Aug. 8, 2023, with the same request.

What came next?

About a month later, Lujan Grisham said she sent Garland a third letter and said New Mexico needed more federal law enforcement to curb violent crime, drug trafficking and human trafficking.

She said her most recent request came on Sept. 4, 2025, when she wrote to former Attorney General Pam Bondi and again asked for additional agents and resources.

The governor’s statement says those requests span several years as she pressed the federal government for more help in New Mexico.

Full statement from Gov. Michelle Lujan Grisham:

“I am appalled by reporting this week by the Associated Press and Albuquerque Journal that revealed federal authorities made a deliberate decision to let hundreds of thousands of fentanyl pills flood into New Mexico communities, despite knowing that fentanyl is so lethal the White House has designated it a weapon of mass destruction.

Let me say that again: the Drug Enforcement Administration watched as 74,000 fentanyl pills were delivered to a mobile home park in Albuquerque, and they did nothing. And that’s just one transaction. Shockingly, the federal government stood by while monitoring shipments, tallying exact pill counts, and watching as these deadly drugs hit the streets.

There are no words to describe how reckless and dangerous these decisions were. Make no mistake: the DEA knew people would die if these pills made it into New Mexico communities, and the agency let it happen anyway. The result: hundreds of New Mexican parents burying their kids. Hundreds of New Mexican kids growing up without stable parents. All while the federal government stood by.

If the justification for letting these pills flood our communities was that it would somehow make New Mexico safer down the road through bigger eventual busts, the results say otherwise. New Mexico now leads the nation in the increase in overdose deaths for the second straight year, despite deaths dropping nationwide.

Today, I wrote to Attorney General Raúl Torrez and asked him to investigate whether any federal agents broke state law when they allowed lethal drugs to remain on our streets, and to prosecute anyone responsible — regardless of whether they are a federal agent or not.

I have spent years working across two administrations — writing letters, traveling to Washington, meeting directly with President Joe Biden and his cabinet, pushing for accountability, asking for more federal agents to be deployed to New Mexico to help fight this crisis.

On June 21, 2022, I wrote to FBI Director Christopher Wray, imploring the FBI to assign no less than 50 additional agents to New Mexico to stem escalating drug trafficking and violent crime.
On September 15, 2022, I wrote to Attorney General Merrick Garland, requesting that the Department of Justice provide additional federal agents, resources and support to New Mexico law enforcement. We asked the department to match the level of investigative, analytical, and technical resources the FBI had deployed in its Buffalo, NY surge.
On August 8, 2023, I wrote again to Attorney General Garland, renewing my request that the DOJ expeditiously assign more federal agents to New Mexico.
On September 7, 2023, I wrote to Attorney General Garland for a third time, reiterating my request once more federal law enforcement support to curb violent crime, drug and human trafficking.
On September 4, 2025, I wrote to Attorney General Pam Bondi, once again requesting additional agents and resources.

I have declared the surge of drugs like fentanyl to be a public health emergency. I have deployed the National Guard to both Albuquerque and Española. While my administration was doing everything we could to stem the tide of fentanyl coming into our state, the federal government deliberately allowed it to flood in.

New Mexican lives are not the federal government’s cost of doing business.

I plan to hold the federal government accountable for this disaster and will explore every possible avenue of action against the federal government to right these wrongs.”

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