Press Article: Lawmakers Debate Expansion of Film Tax Credits in Nevada
Backers of Assembly Bill 238 defended their proposal for expanding Nevada’s film tax credit program during a recent Assembly Ways and Means Committee hearing. This comes amid concerns regarding the potential impact on state finances, particularly after an economic forecast revealed a $191 million shortfall in general fund revenue compared to earlier projections.
Assembly member Natha Anderson raised concerns about the feasibility of the program’s start date in 2028, questioning whether further economic downturns could alter that timeline. In response, co-sponsors Assembly members Sandra Jauregui and Daniele Monroe-Moreno announced plans to introduce amendments to bolster the bill with additional safeguards.
The proposed legislation aims to enhance Nevada’s film tax credit from its current $10 million cap to a substantial $120 million, with $95 million earmarked specifically for the construction of a new film studio in Southern Nevada. The potential extension of these tax credits has garnered attention due to the recent $4.2 million tax benefit awarded to WWE for WrestleMania, indicating that under AB 238, this could have increased to $8.3 million.
Central to the bill is the Summerlin Studios project, a collaboration between Sony Pictures, Warner Bros. Studios, and Howard Hughes Holdings, projected to cost around $1.8 billion. According to consulting firm PFM Group, it could yield $335 million in tax revenue over its 15-year span and generate a remarkable $3 billion in economic impact following completion.
“With this bill, we’re not just attracting filmmakers; we’re building a lasting investment in our workforce and educational system,” Monroe-Moreno emphasized. AB 238 must clear the Ways and Means Committee before proceeding to a vote in the full Assembly. A parallel proposal, Senate Bill 220, also aims to expand film tax credits associated with another studio project in Las Vegas.
For further details, contact McKenna Ross at mross@reviewjournal.com. Follow her on X @mckenna_ross.
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