Additional Coverage:
- Alec Baldwin’s “Rust” denied New Mexico tax incentives (cbsnews.com)
The filmmakers of the Western “Rust” are facing financial hurdles as they attempt to distribute the movie while addressing financial commitments to the family of Halyna Hutchins, the cinematographer who died after being accidentally shot by Alec Baldwin during a rehearsal in 2021. Recently, the New Mexico tax authorities turned down an application by Rust Movie Productions for up to $1.6 million in incentives, according to the Associated Press. There is a looming deadline at the end of July for the producers to appeal this decision.
Alec Baldwin is scheduled to stand trial next week on charges of involuntary manslaughter in connection with Hutchins’ death. At the time of the incident, the actor and co-producer was handling a gun that discharged, resulting in Hutchins’ death and also injuring the director, Joel Souza.
Melina Spadone, an attorney for the production company, pointed out that the tax incentive was intended to help finance a legal settlement between the producers and Hutchins’ husband and son. Despite setbacks, the production of “Rust” resumed in Montana with Baldwin and Souza among those returning, wrapping up last year. The details of the settlement remain confidential, but it aimed to both honor Hutchins’ artistic legacy and provide for her young son.
However, court documents reveal that the settlement payments have been delayed for up to a year as Hutchins’ family’s lawyers decide on their next steps, potentially resuming wrongful death litigation or filing new claims.
The denial of the tax incentives and the ongoing prosecution of Baldwin bear financial implications for New Mexico taxpayers, with the local district attorney’s office spending $625,000 on related legal expenses through April alone.
In the broader context, New South America’s film incentives are among the most substantial nationwide, offering rebates of 25% to 40% to attract film projects and boost local employment and infrastructure. Despite the generous program, the rejection of the “Rust” tax incentives application has surprised legal representatives and could potentially undermine the confidence in these rebates crucial for financing films.
The final approval of these applications, verified against numerous requirements, rests with taxation officials. According to tax department spokesperson Charlie Moore, out of the many applications reviewed last year, several were partially or fully denied.
As New Mexico continues to increase the film tax credit cap under Gov. Michelle Lujan Grisham, payouts are expected to significantly rise approaching 2027.
However, the debate continues over the accountability and eligibility of productions receiving such financial benefits, especially in cases where on-set incidents occur, as highlighted by Democratic state Sen. George Muñoz.
Currently, “Rust” is without a U.S. distributor as the producers seek opportunities at film festivals to release the completed film.
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- Alec Baldwin’s “Rust” denied New Mexico tax incentives (cbsnews.com)