Nevada considers tax credits to lure Sony, film industry to Las Vegas

By Ken Martin | Published May 12, 2023

A logo is pictured outside Sony Pictures Studios in Culver City, California. (REUTERS/Mario Anzuoni  / Reuters Photos)

Nevada is trying to diversify the state's gaming and tourism-reliant economy, which was hit hard by the pandemic.

A group of Nevada lawmakers introduced a bill Thursday that would give massive tax credits aimed at bringing film production to southern Nevada.

Plans would include a $1 billion Sony expansion.

The proposed package would involve $190 million annually in tax credits for 20 years.

The tax credits would only be awarded upon completion of the films at studios built by private developers.

On the drawing board are two film production sites — one on the campus of the University of Nevada, Las Vegas and another in the Summerlin area of Las Vegas.
"It creates a whole new industry in Nevada," the bill's sponsor, Democratic state Sen. Roberta Lange, of Las Vegas, said in an interview with The Associated Press. "I think it helps build and diversify our economy, which is something we’ve talked about in Nevada for as long as I’ve lived here."

A Sony spokesperson said in a statement that the company is supportive of the film industry's expansion into southern Nevada and would commit up to $1 billion on production over the next decade "pending the passage of legislation guaranteeing a competitive Nevada production incentive."

The tax credits could be 30% of the production and construction costs for films – up from the current 15% threshold. The developers would foot the bill for development of the production studios.

"The risk is really on the developers, not on the state of Nevada," said Republican Senate Minority Leader Heidi Seevers Gansert, of Reno, who co-sponsored the bill.

Tax incentives for some of the nation's largest companies have become a major driver of recent efforts to diversify Nevada's economy. Lawmakers are also looking at a funding bill to bring the Oakland A's to Las Vegas. The A’s had asked for $500 million in public assistance for a $1.5 billion stadium site, but have reportedly lowered that number.

Article Source: https://www.foxbusiness.com/entertainment/nevada-considers-tax-credits-lure-sony-film-industry-las-vegas