New Mexico's high tax incentives meant to lure film production crews are paying off, even in remote and rural communities.

After reaching a high mark in 2022, the state's film industry took a hit starting in 2023 after two Hollywood strikes. Now, it is showing modest gains thanks in part to the "Uplift" program, designed to encourage film and television producers to choose more rural communities or those off the beaten path.

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Steve Graham, director of the New Mexico Film Office, said productions spent some $325 million in the recent fiscal year, nearly a quarter in locations beyond Santa Fe and Albuquerque.

"There's a historically high mark now," Graham reported. "We're $57 million dollars worth of shooting in the rural areas. It means the uplift worked and it has spread activity across the state."

Graham pointed out smaller towns, such as Truth or Consequences and Ruidoso, have shared in the windfall, along with Las Cruces, which is larger than Santa Fe but failed to attract as many film productions until recently.

The Uplift program benefited from Senate Bill 12, which was signed by the governor in 2023 and increased the tax credit from 5% to 10%, in addition to the state's 25% base film credit, for expenditures on productions filmed at least 60 miles from city halls in Albuquerque or Santa Fe.

New Mexico is among the top five states with the most competitive film and television tax incentives. In the past year, it hosted 63 productions, including the hit television show, "Dark Winds." Graham noted great weather, iconic locations, robust infrastructure, world-class crews and support from local businesses add to its appeal.

"Some of the things that make it hard to shoot in larger jurisdictions, they don't have to deal with here. Permits are inexpensive or free. Traffic is low or nonexistent. There's places to park. It's easy to get around," Graham outlined.

Graham is optimistic about the film industry's future but watching a lawsuit New Mexico joined last week to prevent a merger between Paramount Skydance Corporation and Warner Brothers Discovery.

While federal regulators approved the $110 billion transaction, a coalition of attorneys general in 12 U.S. states led by California have since filed an antitrust lawsuit to block the deal. They claim it would create an illegal monopoly, stifle competition and hurt entertainment workers.