Nevada Eyes $190 Million Tax Credits To Lure Sony, Film Industry to Las Vegas

Nevada lawmakers introduced a bill that would give $190 million annually in tax credits for 20 years to lure film producers to southern Nevada, including a $1 billion Sony expansion.

The tax credits, the latest attempt at diversifying southern Nevada’s gaming and tourism-reliant economy, would be the largest proposed tax incentive package in recent state history.

While the state’s deals with Tesla and Redwood Materials totaled hundreds of millions of dollars each using direct tax abatements.

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

The legislation would involve the state entering an agreement with private developers, who would finance film production sites at the University of Nevada campus and in the Summerlin area of Las Vegas.

Sen. Roberta Lange of Las Vegas said the tax credits create a whole new industry in Nevada and helps build and diversify their economy.

It also comes as a funding bill to bring the Oakland A’s to Las Vegas is expected to drop any day. The A’s originally asked for $500 million in public assistance for a $1.5 billion stadium site, but have reportedly lowered that number.

Sony is supportive of the film industry’s expansion into southern Nevada and said it would commit up to $1 billion on production over the next decade “pending the passage of legislation guaranteeing a competitive Nevada production incentive.”

Under the bill, production companies would apply for 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 costs 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.