Lawmakers seek tax incentive package to lure Sony film productions to Las Vegas

By Ken Martin | Published May 12, 2023

LAS VEGAS (KSNV) — Nevada lawmakers are hoping to pass a tax package for new film production facilities in Las Vegas, and Sony Pictures says it's prepared to commit up to $1 billion in production spending over a decade in the area if the bill is approved.

Democratic state Sen. Roberta Lange on Thursday introduced Senate Bill 496, also referred to as the Nevada Film Studio Infrastructure Act, proposing $190 million annually in tax credits for 20 years.

The bill would establish what it calls the "Las Vegas Media Campus Project" and "Summerlin Production Studios Project," both of which could apply for film infrastructure tax credits for qualified film and television production.

The Las Vegas media campus would be located at the Harry Reid Research and Technology Park, a tech hub being developed by UNLV in the southwest valley.

The Nevada Independent was the first to report the news.

SB 496 has bipartisan support, with GOP Sens. Scott Hammond and Heidi Seevers Gansert and Democratic Assemblyman Cameron Miller signed on as sponsors.

While not mentioned by name in the bill, Sony Pictures says it would be involved in the development.

Considered one of the "Big Five" Hollywood studios, Sony Pictures owns the Columbia Tri-Star catalog of films and franchises, including the rights to "Spider-Man," "Ghostbusters" and "Jumanji."

Under the bill, production companies would apply for the transferable tax credits, which are used to offset the modified business tax, insurance premium tax or gaming license fee. The tax credits could be 30% of production and construction cost for films — up from the current 15% threshold. Part of those tax credits would fund local workforce training and educational programs for jobs that the studios create.

The developers of the UNLV and Summerlin sites would foot the bill for development of the production studios, projected at $500 million and $400 million respectively by 2030. Birtcher Development will work on the UNLV site, while Howard Hughes Corporation would handle the Summerlin facility.

Lange told News 3 on Thursday that Birtcher Development approached her, and the proposal would help the state diversify its economy.

"Last week, I got a call from the Hughes Corporation and Sony asking if they could be part of my bill as well," Lange said. "So we negotiated through the weekend about how we could add them to the bill, and we did. And so I feel like we have a really great partnership."

The Nevada Film Office, which is part of the Governer's Office of Economic Development, says the state already hosts about 300-400 film shoots a year. Still, Nevada hasn't been able to compete for productions against other states like New Mexico or Georgia, which have become major filming hubs thanks to their generous tax incentives and studios.

Danette Tull, the film resource coordinator with the Nevada Film Office, says right now studios come to Las Vegas to shoot exterior shots and location footage, and the rest of the production continues out of state.

"We don't have a soundstage that could support an entire season of, let's say, 'CSI: Las Vegas' or any one of the episodic television shows," Tull said. "We just don't have the infrastructure to support an entire program or feature film."

Lange said a hearing for SB 496 is scheduled for Tuesday as the current legislative session nears its June 5 conclusion.

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