New Mexico
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.
“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.
Regional gas prices rose for the second consecutive week and reached an average of $3.60 per gallon of regular fuel on Monday, up from last week’s price of $3.41 per gallon, according to the U.S. Energy Information Administration.
Gas prices are jumping around because traders are trying to price in how long the Iran war will disrupt oil flows from the Middle East, on top of the usual spring run‑up in demand as driving season approaches. Markets are baking in higher risk and “additional volatility” but not a long-term shutdown, and prices could retreat if it becomes clear the tensions are short-lived, petroleum analyst Patrick De Haan said.
Analysts say another 20 to 30 cents a gallon is still likely in the weeks ahead.
The average fuel price in the Gulf Coast region rose about 107 cents since last month. According to the EIA, gas prices across the region in the last year have been as low as $2.37 on Jan. 5, 2026, and as high as $3.60 on March 23, 2026.
A year ago, the average gas price in the Gulf Coast region was 31% lower at $2.74 per gallon.
>> INTERACTIVE: See how your area’s gas prices have changed over the years at data.lcsun-news.com.
The average gas price in the United States last week was $3.96, making prices in the Gulf Coast region about 9.0% lower than the nation’s average. The average national gas price is higher than last week’s average of $3.72 per gallon.
The U.S. Energy Information Administration’s tally of prices in the Gulf Coast states includes Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas.
USA TODAY Co. is publishing localized versions of this story on its news sites across the country, generated with data from the U.S. Energy Information Administration. Please leave any feedback or corrections for this story here. This story was written by Ozge Terzioglu.
QUAY COUNTY, N.M. – A grass fire has burned an estimated 1,000-2,000 acres near San Jon in Quay County.
Emergency crews say the Old 66 Fire is threatening structures, and remains 0% contained.
The New Mexico Forestry Division said crews discovered the fire at 12:30 p.m. Friday, March 27 east of San Jon, north of Interstate 40 in Quay County.
Smoke is visible from Interstate 40 and surrounding areas.
The fire is on private land and the cause remains under investigation.
State Road 469 is closed at Main Avenue. Officials said local residents should use caution and avoid the area.
Structures threatened include a wind farm to the southwest.
Millions are expected to protest Trump during Saturday’s ‘No Kings’ rallies
Ilia Malinin bounces back from Olympic nightmare to win third straight world figure skating title
Hundreds of thousands march through London in stand against the far right
2 students killed, 7 other people injured in Tennessee bus crash during school field trip
Three Detroit Pistons Players That Have Impressed Most Without Cade Cunningham
Florida High School Football Rankings: Top 25 teams – Oct. 21
How old is Bo Nix? What to know about Oregon quarterback ahead of 2024 NFL Draft
Cleary's 21 help Le Moyne down Central Connecticut State 69-64 in OT
99th annual Pony Swim held in Virginia
Indiana Members Credit Union announced as new anchor tenant at Bottleworks District
Hundreds of thousands march through London in stand against the far right
2 students killed, 7 other people injured in Tennessee bus crash during school field trip
Dem senators dodge crucial question on illegal alien accused of killing Chicago college student
EU Parliament unblocks key political hurdle in digital euro talks
Man arrested in plot to firebomb Palestinian activist’s home after undercover op
-
Detroit, MI1 week agoDrummer Brian Pastoria, longtime Detroit music advocate, dies at 68
-
Movie Reviews1 week ago‘Youth’ Twitter review: Ken Karunaas impresses audiences; Suraj Venjaramoodu adds charm; music wins praise | – The Times of India
-
Sports1 week agoIOC addresses execution of 19-year-old Iranian wrestler Saleh Mohammadi
-
New Mexico6 days agoClovis shooting leaves one dead, four injured
-
Business1 week agoDisney’s new CEO says his focus is on storytelling and creativity
-
Tennessee5 days agoTennessee Police Investigating Alleged Assault Involving ‘Reacher’ Star Alan Ritchson
-
Technology6 days agoYouTube job scam text: How to spot it fast
-
Texas1 week agoHow to buy Houston vs. Texas A&M 2026 March Madness tickets