New Mexico
New Mexico denies Alec Baldwin's ‘Rust’ movie $1.6m tax incentive
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.
“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.
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.
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.
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.
The McCauley Springs Fire in the Jemez Ranger District, east of Battleship Rock, is 100% contained at 712 acres.
The fire was reported on Wednesday, June 24, 2026. The Northern New Mexico Zone Type 3 Incident Management Team (IMT), led by Incident Commander Luke McLarty, initially managed the fire before the Southwest Area Incident Management Team 3, under Incident Commander Matt Rau, took over. From June 26 to July 4, this team handled operations, after which command returned to the Jemez Ranger District. Under a Type 4 organization, firefighters worked to cool remaining hot spots and secure firelines, reaching full containment on July 13.
Although the fire is fully contained, visitors should remain aware that burned areas can present hazards. When visiting fire-affected areas, watch for changing conditions, hazard trees, unstable terrain, and other post-fire hazards. Suppression repair work may continue in some locations, and the public is asked to use caution around personnel and equipment and provide crews with plenty of space to work.
A temporary closure order for the burned area remains in place through August 11, 2026. The full order and map can be found on the Santa Fe National Forest website under Alerts. Battleship Rock, Jemez Falls Campground and Group Area, the Jemez Falls Trailhead, San Diego Overlook, and the East Fork Trail from Battleship Rock to Highway 4 will remain closed until further notice for public safety.
A multi-disciplinary Burned Area Emergency Response (BAER) team evaluated the burned area to identify risks to human life, property, and critical resources. Over 80% of the fire was mapped as low soil burn severity, meaning most tree canopies and ground cover remain intact, reducing the risk of erosion and runoff. About 12% of the area showed moderate burn severity, with patchy ground cover loss and some water-repellent soils. Less than 1% was classified as high burn severity, where vegetation and soil were heavily impacted. The full summary can be found on the Santa Fe National Forest website.
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About the Forest Service: The Forest Service has brought people and communities together to answer the call of conservation for more than 100 years. Grounded in world-class science and technology — and rooted in communities — the Forest Service connects people to nature and recreation opportunities. The agency manages 193 million acres of public land, supports the nation’s forest industry and energy needs, and operates the largest and most respected wildland fire and forestry research organizations in the world. By providing assistance to state and private landowners and working with tribes and other partners, the Forest Service also helps steward an additional 900 million forested acres within the U.S.
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NEW MEXICO (KRQE) – Some call the multi-million-dollar El Camino Real Heritage Center an architectural masterpiece. Others, however, call it one of New Mexico’s most expensive blunders. In 2021, former Speaker of the House Don Tripp weighed in on the project, “As far as benefit, it really didn’t have any benefit to anybody.”
Taxpayers paid more than $4,000,000 to build it, a few million dollars more to operate it and, now, a half million to tear it down.
The El Camino Real Heritage Center is a history museum dedicated to the historic ‘Royal Road of the Interior’. Established by Spanish conquistadores in 1598, the historic byway extended from Mexico City to north of Santa Fe. Armed with $4,000,000 from the state legislature and the Bureau of Land Management, consultants were hired to find the best place to build the new museum. After studying various locations, they chose a remote spot on the prairie 37 miles south of Socorro.
The experts said, ‘build halfway between Socorro and Truth or Consequences,’ and the museum will draw 100,000 visitors a year, bring in $10,000,000 to the region, and create 174 new jobs. Back in 2004, no one raised a red flag about putting a tourist attraction in an out-of-the-way location. It was only after construction was complete that officials learned the so-called experts were dead wrong. The project was doomed to fail before it even opened its doors. “Who the heck thought it was a good idea to build it where they built it?” State Rep. Gail Armstrong told KRQE News 13 last year.
The state’s newest museum opened in 2005. An estimated crowd of 2000 turned out for the dedication ceremony. Socorro Mayor Ravi Bhasker was there. “We had Bill Richardson out there cutting the ribbon, and then we had the Vice President of Spain come down here with his beautiful wife, and we had dignitaries everywhere. It was exciting,” Mayor Bhasker said.
But the excitement was short-lived. Where the historic El Camino Real trail was in use for three centuries, the museum with its namesake lasted just eleven years. The remote location meant few visitors, meager revenue, inadequate staffing, expensive utilities, and maintenance.
In 2016, New Mexico’s Cultural Affairs Department pulled the plug on the El Camino Real Heritage Center, padlocked the doors, and permanently closed the museum. The parking lot is deserted, tourists are gone, artifacts are packed away, display cases vacant, exhibits dismantled, interpretive panels removed, and the gift shop is bare. All there is to show for millions of tax dollars is an abandoned building on the prairie.
“Eleven years is disgraceful. There was a real failure in this particular project,” the late State Senator John Arthur Smith said in a 2021 interview. We asked the retired Senate Finance Committee Chair, when the history of this project is written, what will it say? “They’re going to shake their head and (use this as) another example of government waste,” the retired Senator Smith said in 2021.
So what do you do with a $4,000,000 deserted building in the middle of nowhere? Time and vandals have taken a toll. The museum was closed and boarded up in 2016, and then state officials abandoned the site. Because little effort was made to secure the empty building, it is no longer habitable. Copper wiring has been stolen. There is significant structural damage, mold, a rodent infestation, and no electricity or lights. Most of the HVAC, electrical, plumbing, water, and septic systems are either obsolete or inoperable.
Faced with a whopping $3.5 million repair bill, the Museum of New Mexico’s Board of Regents made the difficult decision last year to demolish the building. Board of Regent’s President, Dr. George Goldstein, calls the building, “A loss, a huge loss.”
“What a complete waste of taxpayer dollars,” says State Rep. Gail Armstrong who’s District 49 includes the museum site. And what did taxpayers get for their $4,000,000 investment? “Nothing. It just cost them a ton of money. Nothing,” Representative Armstrong said.
This week, a state-hired demolition crew began the task of tearing down the museum complex. Tons of concrete, steel, and glass will be hauled away. The parking lot and nearby caretaker’s house will also be ripped out. The prairie will be graded, reseeded with native plants, and returned to the Bureau of Land Management in restored, pristine condition. The demolition project is expected to take four months.
The El Camino Real museum was planned and built during the Governor Bill Richardson administration. All of the State Legislators involved in the funding of the museum project have since left government service.
Soon, the El Camino Real International Heritage Center will be just a bitter memory. All clues to the existence of a pricey government blunder will have been erased. Pay a visit to the remote spot south of Socorro later this fall, and all you will find will be desert creosote, prairie dogs, and a few rattlesnakes.
CLOVIS, New Mexico (KVII) — A baby giraffe was born at the Hillcrest Park Zoo in Clovis.
The city announced a male calf was born around 1 a.m. Thursday to Jerrica, a Rothschild giraffe who has lived at the zoo since she was born there in January 2012.
Zoo officials said Jerrica, a first-time mother, and her calf are doing well.
Baby giraffe born at the Hillcrest Park Zoo in Clovis, New Mexico on July 9, 2026 (Credit: Hillcrest Park Zoo )
The calf will make his public debut from 10 a.m. to noon Saturday.
“This is a once-in-a-lifetime moment you won’t want to miss! Bring your family, your camera, and your excitement as we welcome the zoo’s newest (and tallest!) superstar!” said the zoo.
Because the calf is male, he will eventually be moved from Hillcrest Park Zoo to another zoo or facility, according to the city.
The zoo plans to ask the public to help name the calf in the coming weeks.
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