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New Mexico Denies Film Incentive Application on Alec Baldwin’s ‘Rust’ Movie After Fatal Shooting

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New Mexico Denies Film Incentive Application on Alec Baldwin’s ‘Rust’ Movie After Fatal Shooting


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 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.

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“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.

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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 final say on whether expenses are eligible.

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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 have an obligation to 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.

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.

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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.

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

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Federal fraud trial against former New Mexico lawmaker pushed back to August

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Federal fraud trial against former New Mexico lawmaker pushed back to August


ALBUQUERQUE, N.M. (KRQE) – The federal fraud case against a former New Mexico state lawmaker is getting delayed again. Former Rep. Sheryl Williams Stapleton is accused of swindling millions from Albuquerque Public Schools, funneling the money through the district to a robotics company owned by a friend, Joseph Johnson. A judge had scheduled the trial for […]



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New Mexico confirms latest measles case at a local jail

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New Mexico confirms latest measles case at a local jail


The number of confirmed measles cases in New Mexico increased to six after the state’s Department of Health confirmed Wednesday a new case inside a local jail in Las Cruces.

A federal inmate being held in the Doña Ana County Detention Center is the latest person to have tested positive for measles. The New Mexico Department of Health said others may have been exposed to the highly contagious disease from this confirmed case if they visited the U.S. District Court building in Las Cruces on Feb. 24.

State heath officials are now urging anyone who was at the courthouse that day to check their vaccination status and report any measles symptoms from now until March 17 to a health care provider.

“The New Mexico Department of Health continues to urge people to get the measles, mumps and rubella (MMR) vaccination,” Dr. Chad Smelser, New Mexico’s deputy state epidemiologist, said in a statement. “Vaccine is the best tool to protect you from measles.”

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Measles spreads through the air and people who contract the virus may experience symptoms such as runny nose, fever, cough, red eyes and a distinctive blotchy rash. These symptoms can develop between one and three weeks after exposure.

All of the six confirmed measles cases in New Mexico so far are federal detainees.

The first measles case was detected in the Hidalgo County Detention Center on Feb. 25, when a detainee, whose vaccination status was unknown, tested positive for the disease by the New Mexico Department of Health’s Scientific Laboratory.

Two days later, a second federal inmate in the same jail tested positive for the virus alongside two detainees in the Luna County Detention Center and another in the Doña Ana County Detention Center.

Both the Luna County and Doña Ana detention centers are local jails that also serve as holding facilities for federal immigration enforcement.

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New Mexico health officials said they are the state’s first confirmed cases of this year, following a statewide outbreak in 2025 that sickened 100 people from mid-February to mid-September.

With two measles cases reported on each of the three local jails, Smelser said that the New Mexico Department of Health has sent vaccination teams to all three facilities.

State health officials are also “coordinating with all the facilities to assure all quarantine, isolation, testing and vaccination protocols are followed to minimize risk of measles spread.”

According to the NBC News measles tracker, more than 1,000 cases have been counted nationwide just in the first two months of this year. That’s nearly half the amount of cases confirmed in the United States in all of last year.

As 2026 already stands as one of the three worst years for measles infections in the country since 2000, another measles outbreak was confirmed this week in Texas inside the nation’s largest immigration detention facility.

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On Wednesday, an Immigration and Customs Enforcement spokesperson told NBC News that a least 14 cases of measles were confirmed inside Camp East Montana, which is located on the Fort Bliss Army base in El Paso.

The people who tested positive for measles have been “cohorted and separated from the rest of the detained population to prevent further spread,” the ICE spokesperson said.



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New Mexico legislation focusing on K-3 math education aims to improve stubbornly low scores

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New Mexico legislation focusing on K-3 math education aims to improve stubbornly low scores


Aaron Jawson regularly spends time reteaching the basics to his sixth grade math students.

They often have a bit of a complex around math, said Jawson, who teaches at Ortiz Middle School. They often have a lot going on at home, or a lot of stress about societal problems.

And in many cases they have been behind for years.

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The problem

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Why K-3?

Teacher preparation







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Jesus Dominguez ponders the next step in an equation during Aaron Jawson’s sixth grade math class Monday at Ortiz Middle School.

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Family involvement

Other changes







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Jesus Dominguez ponders the next step in an equation during Aaron Jawson’s sixth grade math class Monday at Ortiz Middle School.


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What more could be done?

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