Producers of “Rust” Denied Tax Incentives in New Mexico

The future of the western movie “Rust” is uncertain as producers face a setback in their quest for a $1.6 million tax incentive in New Mexico. The denial of the incentive could have major financial implications for the film’s producers as they try to sell the movie to distributors and settle a legal agreement with the family of the cinematographer who was tragically shot and killed by Alec Baldwin during a rehearsal in 2021.

With a deadline approaching for producers to appeal the decision, the film’s lead actor and co-producer, Alec Baldwin, is also facing an involuntary manslaughter trial next week for his role in the fatal shooting. The denial of the tax credit has disrupted financial arrangements meant to settle with the family of the cinematographer, Halyna Hutchins.

Despite the setback, producers are determined to finish the film as a tribute to Hutchins’ artistic vision and to generate funds for her young son. However, court documents reveal that settlement payments are up to a year late, as legal representatives for Hutchins’ widower consider their next steps, including the possibility of resuming wrongful death litigation.

The denial of the tax credit not only affects the producers of “Rust” but also has financial implications for New Mexico taxpayers. The state’s film incentives program is one of the most generous in the nation, offering rebates of up to 40% on production expenses to attract movie projects and investments. The denial of the incentive could have a chilling effect on future rebate-backed loans that support the local film industry.

As the fate of “Rust” hangs in the balance, the film does not yet have a U.S. distributor as producers navigate the aftermath of the tragic incident on set. With the trial looming and financial challenges mounting, the future of the film remains uncertain. Stay tuned for updates on this developing story.