Netflix $2B expansion in New Mexico will get hundreds of millions in tax breaks

(The Center Square) - Netflix will spend $2 billion to expand its Albuquerque Studios, solidifying its commitment to working in New Mexico. The expansion effort includes four new soundstages, three mills, one production office, two stage support buildings and will receive hundreds of millions in tax breaks.

“We’re proud to see Netflix deepen its roots in New Mexico, creating thousands of jobs and boosting our local economy," Governor Michelle Lujan Grisham said in a statement. “New Mexico's talented film industry workforce, diverse landscapes, and vibrant communities provide the perfect backdrop for Netflix's innovative productions."

The expanded studio will feature environmentally friendly provisions like solar power, geothermal heating, and electric vehicle chargers.

“Our experience in New Mexico has been exceptional,” Ted Sarandos, Netflix co-CEO, said in the release. “We appreciate the strong partnership with the state and local governments, the rich tapestry of landscapes, and the talented pool of creative talent and crew who bring a unique energy to our productions. We're excited to expand our footprint and bring more opportunities to New Mexico."

Netflix has produced 12 film and television projects in New Mexico since 2019. It has spent over $640 million doing so and employed over 4,000 residents, many only temporarily.

"Netflix's decision to expand their studio space in New Mexico is a tremendous vote of confidence in our state's thriving film industry," Mark Roper, New Mexico Economic Development Department’s acting cabinet secretary, said in a release.

The New Mexico film and television industry has seen a 51% increase in direct spending to over $794 million since 2019, according to the release.

Netflix has produced original programming throughout New Mexico. Such works include “Trigger Warning,” “American Primeval,” and “Pulse.”

“Netflix’s expansion and ongoing partnership with New Mexico is a cornerstone to our vision of becoming a globally revered, innovative, and sustainable media ecosystem that benefits our communities and residents statewide,” New Mexico Film Office Director Amber Dodson said in the release.

Netflix has been drawn to New Mexico in recent years due to the state's film tax credit. The state offers credits worth 25% to 40% of the direction and post-production costs, according to The Los Angeles Times .

New Mexico has provided Netflix with $19.5 million via its Local Economic Development Act (LEDA), and the city of Albuquerque has given $4 million to the company from its municipal LEDA, totaling $23.5 million, a spokesman for NMEDD told The Center Square. The state has $7.5 million more in LEDA funds available for Netflix as it hits certain economic development goals over 10 years.

Additionally, Netflix will spend $2 billion on production over 10 years, making it eligible for between $250 million and $400 million in film tax credits.