Alec Baldwin, Other ‘Rust’ Producers Denied Lucrative New Mexico State Film Tax Incentive

Rust, the ill-fated film production marred by the death of cinematographer Halyna Hutchins, has been denied a portion of New Mexico’s film & TV tax incentives, despite the fact that it was made at the Bonanza Creek Ranch near Santa Fe.

Documents obtained by AP show the New Mexico Film Office issued a memo in January approving the film’s eligibility to apply for the incentives. It is unclear why, exactly, the application was denied. Those incentives could have been worth up to $1.6 million, according to the outlet.

More from Deadline

Hutchins was killed and Rust director Joel Souza was injured on October 21, 2021, after the pistol Baldwin was pointing at the cinematographer shot off a live round during a rehearsal at the Bonanza Creek Ranch. Baldwin, who repeatedly has said he did not pull the trigger, is set to go on trial next week for involuntary manslaughter related to the incident. Baldwin also is a producer on the indie film.

Meanwhile, Rust is still without a U.S. distributor.

RELATED: ‘Rust’ Armorer Sentenced To 18 Months Behind Bars For Halyna Hutchins’ Death; “You Alone Turned A Safe Weapon Into A Lethal Weapon,” Judge Says

An attorney representing Rust Movie Productions said the tax incentive was intended to be used to finance a legal settlement between producers and Hutchins’ widower, Matthew Hutchins, and her son. The elder Hutchins is an EP on the film.

“The denial of the tax credit has disrupted those financial arrangements,” Rust Movie Productions’ attorney Melina Spadone told AP.

Best of Deadline

Sign up for Deadline's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.