Morgan Lee reported exclusively that producers for the Alec Baldwin movie “Rust” were denied tax incentives from the state of New Mexico.
Morgan Lee has been on the “Rust” beat since the 2021 fatal on-set shooting of cinematographer Halyna Hutchins. Given that the man with the gun was Alec Baldwin, an actor who has long been famous and at times infamous, it’s been a rather competitive beat. This week, all eyes from the entertainment trades, national news publications and local outlets are focused on Santa Fe, New Mexico, where Baldwin is standing trial on a manslaughter charge. And The Associated Press was already ahead, thanks to its footprint and Lee’s tenacious reporting.
Lee, a statehouse writer, has reported extensively on the tax incentives that have made New Mexico a popular filming location. As a percentage of the state budget, only Georgia — the so-called Hollywood of the South — pays out more in incentives. Lee knew that the makers of “Rust,” which Baldwin co-produced, could apply for the incentives even after the fatal shooting. In looking for ways to distinguish AP’s coverage in a crowded and competitive landscape, Lee filed public records requests and learned that the producers’ application for up to $1.6 million in tax incentives was denied. But the state of New Mexico would not turn over that denial letter. Undeterred, Lee worked with sources for months to unravel the details.
An attorney for producers said that the money was meant to pay a financial settlement in the wrongful death lawsuit brought by Hutchins’ husband and son, arrangements made in 2022 that were key to restarting the film’s production and are now disrupted. Lee rounded out the story with experts who questioned whether the state could deny payment to producers, who plan to appeal. One expert said New Mexico’s decision could risk the state losing major productions given that “Rust” seemed to legally qualify for the rebate. Lee also reported important context about producers not having been able to find a U.S. distributor for the film thus far.
The resulting story was an AP exclusive that could not be matched, thanks to Lee’s sourcework. Every major media outlet in New Mexico used the story, as did The Washington Post, entertainment-specific outlets, major television networks and countless others. For using deep local expertise to break news on a story of national — and international — interest, Morgan Lee earns this week’s Best of AP — Second Winner.
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