rustThe ill-fated film production, which was marred by the death of cinematographer Halyna Hutchins, was denied a portion of New Mexico’s film and television tax credits, even though the film was shot at the Bonanza Creek Ranch near Santa Fe.

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

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Hutchins was killed and rust Director Joel Souza was injured on October 21, 2021, after the gun Baldwin pointed at the cameraman fired a live bullet during a rehearsal at Bonanza Creek Ranch. Baldwin, who has repeatedly said he did not pull the trigger, is scheduled to go on trial next week on manslaughter charges related to the incident. Baldwin is also a producer on the indie film.

In the meantime, rust still has no US distribution.

RELATED: ‘Rust’ gun master sentenced to 18 months in prison for Halyna Hutchins’ death; ‘You alone turned a safe gun into a deadly weapon,’ judge says

A lawyer for Rust Movie Productions said the tax break was intended to fund a legal settlement between the producers and Hutchins’ widower, Matthew Hutchins, and their son. The elder Hutchins is an EP on the film.

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

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