New Mexico reportedly denied a $1.6 million film incentive for Rust as producers try to sell the movie to distributors in order to complete financial obligations to the family of cinematographer Halyna Hutchins, who was fatally shot by actor Alec Baldwin during rehearsal in 2021.
The state’s tax authorities denied the application sent to them in the spring from Rust Movie Productions, which now has until late July to appeal the decision, according to documents obtained by Associated Press.
The production company’s attorney, Melina Spadone, claimed the tax incentive was going to go toward the legal settlement between Rust producers and Hutchins’ widower and son.
“The denial of the tax credit has disrupted those financial arrangements,” Spadone said.
Rust producers are already up to a year late in paying their settlement, according to court documents. Meanwhile, lawyers for the cinematographer’s widower, Matthew Hutchins, are reportedly looking into “next steps.”
Notably, New Mexico’s film incentives program is one of the most generous in the country, as it uses a bigger percentage of its state budget than any other state — except for Georgia.
New Mexico offers a direct rebate of between 25 percent and 40 percent on a wide range of expenses in order to attract film projects, employment, and infrastructure investments, Associated Press noted.
Some of the beneficiaries of New Mexico’s rebate program include the 2011 film, Cowboys and Aliens, and the Breaking Bad spinoff series, Better Call Saul.
But the Santa Fe district attorney’s office implied that the issues involving Rust have financial implications for New Mexico taxpayers, noting that it has already spent $625,000 on Rust-related prosecutions through the end of April.
As for Baldwin, he is set to go on trial next week on an involuntary manslaughter charge in Hutchins’ death, while prosecutors accuse the actor of having a history of reckless treatment of firearms.
You can follow Alana Mastrangelo on Facebook and X at @ARmastrangelo, and on Instagram.
