Latest news with #AB238
Yahoo
a day ago
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Still no green light for largest public subsidy in state history as Legislature hits adjournment day
A small army of lobbyists for film studios could be seen entering the Senate Democrats office after the lawmakers adjourned for the night. (Photo: Jeniffer Solis/Nevada Current) The Hollywood movie studios seeking $1.4 billion in transferable tax breaks over 15 years have clearly not received a red carpet rollout from the Nevada State Legislature. Assembly Bill 238, which proposes a twelvefold expansion of the state's transferable film tax credit program, passed the Assembly late Friday in a 22-20 vote, the thinnest margin allowable since a tie would mean not passing. That left the high profile bill three days to pass the Senate. However, two whole days came and went, leaving the bill with less than 24 hours to make it across the finish line. The Senate Finance Committee on Sunday appeared to be gearing up for a late night hearing on the film tax credit bill, but instead the full Senate withdrew the bill from the committee and allowed it to take a procedural step it needed in the full chamber. The bill would massively expand Nevada's film tax credit program to support the build out and operation of a 31-acre film studio currently referred to as the Summerlin Production Studios Project (after the Las Vegas neighborhood where it would be located). Hollywood giants Sony Pictures Entertainment and Warner Bros. Discovery are attached to the project. Howard Hughes Holdings is developing. A small army of lobbyists for film studios could be seen entering the Senate Democrats office after the lawmakers adjourned for the night. Nevada's film tax credit program is currently capped at $10 million per year. AB 238 would raise that cap to $120 million per year, for 15 years, beginning in 2028. The majority of those tax credits, $95 million per year, would be reserved for productions at the Summerlin studio; $25 million per year would be for productions not attached to the studio. Altogether, that's equivalent to $1.8 billion in public subsidies for the television and film industry. If approved by the Senate and signed into law by Gov. Joe Lombardo, the legislation will be the largest public subsidy approved by the State of Nevada, surpassing the $1.25 billion approved by lawmakers in 2014 for Tesla Motors. While tax credits aren't issued to companies until they prove they've met the qualifications for them, the state must treat them as 'negative revenue' when forecasting expected state revenue. That means they do impact the state budgeting process. Here's where other high-profile bills stand going into the last day of the session: All five state budget bills have all passed the Nevada Legislature. Senate Bill 502, known as the capital improvement program (CIP) bill, crossed the legislative finish line on Sunday. The CIP bill must be passed by a two-thirds majority, so it is often used by the minority party as leverage in broader negotiations. That was the case in the 2023 session, when the CIP bill failed to pass the Senate before midnight on the last day. That forced a one-day special session. The state's other four budget bills (Senate Bill 500, Assembly Bill 591, Assembly Bill 592, and Senate Bill 501) all passed the Legislature within the last week and have been signed by the governor. Senate Majority Leader Nicole Cannizzaro and Gov. Joe Lombardo reached a compromise on their competing omnibus education bills. Cannizzaro's Senate Bill 460 was amended to include components of Lombardo's Assembly Bill 584, including his proposal to establish a statewide accountability system and a salary incentive program for educators and administrators. Components of Cannizzaro's bill that made it past the amendment include revised evaluation procedures for educators and administrators and additional transparency and assessment requirements for schools receiving funding through the state's quasi-voucher system, known as Opportunity Scholarships. The Senate unanimously passed the bill Sunday, and the bill now heads to the Assembly. Cannizzaro said the bill represents the state taking 'significant strides' toward accountability and transparency. Senate Minority Leader Robin Titus also spoke on the floor in support. Also on the education front: Senate Bill 161, a Clark County Education Association priority bill carried by state Sen. Rochelle Nguyen (D-Las Vegas), passed the Legislature with some bipartisan support and was signed by Lombardo in the last week of the session. The bill establishes an expedited arbitration process for teachers unions and school districts, and, perhaps more consequentially, establishes a pathway for K-12 public school teachers to legally go on strike. With the passage of SB 161, CCEA will withdraw a ballot measure it had qualified for the 2028 general election ballot. That ballot measure, if approved by voters, would have given teachers the right to strike. The teachers union had previously said it was prepared to defend the ballot measure next year but would prefer to bypass it through legislative action. It marks the second time the union has pulled this move. In 2021, CCEA qualified two ballot measures — one to raise the gaming tax, another to raise the sales tax — only to pull them after the Legislature established a new mining tax that directly funds the state's K-12 per pupil education fund. Assembly Bill 540, Lombardo's housing bill, is currently in the Senate Government Affairs Committee. It has received a hearing but no action has been taken. The bill has already cleared the full Assembly. Senate Bill 457, Lombardo's criminal justice bill, passed out of the Senate Judiciary Committee on Sunday after receiving a major amendment. The bill needs to pass the full Senate and the full Assembly. Senate Bill 495, Lombardo's health care bill, is prepped for a vote by the full Senate. It will need to be approved by the Senate, then by the Assembly. Senate Bill 461, Lombardo's economic development bill, is currently in the Senate Revenue and Economic Development Committee. It received a hearing but no action has been taken. On Friday, a banking bill sponsored by Assembly Speaker Steve Yeager fell short of the required two-thirds approval it needed to pass the chamber. Assembly Bill 500 would allow for payment banks, a new type of financial institution that focuses solely on payment processing rather than lending. The Assembly vote was 25-17, a simple majority but three votes short of the two-thirds it needed because it would raise state revenue. On Sunday, AB500 returned to the Assembly floor with an amendment that removed the two-thirds requirement. The amendment was adopted but, in a bizarre turn of events, the vote failed 20-22. The vote was attempted a third time and also failed.
Yahoo
3 days ago
- Business
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By thin margin, Assembly passes bill to provide $1.4b in tax credits for Summerlin movie studio
Among the 27 Democrats in the chamber, 15 voted in support and 12 voted against. Among Republicans, seven supported and eight opposed. The Nevada Assembly on Friday night approved what will likely be the state's largest ever public subsidy: $1.4 billion in transferable tax credits over 15 years to support a movie studio in Las Vegas. Assembly Bill 238 passed the Assembly by a razor-thin margin: 22 in support, 20 opposed. The bill now advances to the Senate for consideration in the waning days of the legislative session. The bill would massively expand Nevada's film tax credit program to support the build out and operation of a 31-acre film studio currently referred to as the Summerlin Production Studios Project (after the Las Vegas neighborhood where it would be located). Hollywood giants Sony Pictures Entertainment and Warner Bros. Discovery are attached to the project. Howard Hughes Holdings is developing. How transferable tax credits cost the state money: A $50 million example Transferable tax credits sell for less than face value — a discount of about 10% isn't unusual. Let's say the state issues Sony $50 million of tax credits. MGM Resorts International buys them from Sony for $45 million. Then, instead of paying the state $50 million in gaming taxes that it owes, MGM gives the state the tax credits it bought from Sony. MGM gets a $5 million tax break. Sony gets $45 million. And the state, which otherwise would have received $50 million in tax revenue from MGM, gets nothing. — Hugh Jackson Nevada's film tax credit program is currently capped at $10 million per year. AB 238 would raise that cap to $120 million per year, for 15 years, beginning in 2028. The majority of those tax credits, $95 million per year, would be reserved for productions at the Summerlin studio; $25 million per year would be for productions not attached to the studio. Altogether, that's equivalent to $1.8 billion in public subsidies for the television and film industry. If approved by the Senate and signed into law by Republican Gov. Joe Lombardo, the legislation will be the largest public subsidy approved by the State of Nevada, surpassing the $1.25 billion approved by lawmakers in 2014 for Tesla Motors. Democratic Assemblymembers Sandra Jauregui and Danielle Monroe Moreno, who sponsored the bill, have pushed back on the characterization of their proposal as a public subsidy for massive corporations, instead framing it as an investment in a new industry that will bring thousands of new jobs and new revenue to the state. While tax credits aren't issued to companies until they prove they've met the qualifications for them, the state must treat them as 'negative revenue' when forecasting expected state revenue. That means they do impact the state budgeting process. Opponents have argued that the return on investment is low. An independent analysis commissioned by the Governor's Office of Economic Development, which houses the Nevada Film Office, determined that AB238 would stimulate the state economy but not enough to offset the massive expansion of the film tax credit program. An analysis commissioned by the backers of AB 238 offered a rosier projection, but even that acknowledged that most of the projected economic activity is indirect or induced. An amendment adopted by the Assembly will create a special tax zone around the Summerlin film studio that captures some of the local taxes generated and diverts it to the Clark County School District to fund pre-k programs in East Last Vegas. Additional guardrails were also amended into the bill. Support in the Assembly did not fall across party lines. Among the 27 Democrats in the chamber, 15 voted in support and 12 voted against. Among Republicans, seven supported and eight opposed. The Summerlin studio bill received less support in the Assembly than the bill two years ago that approved $380 million in public assistance for a proposed baseball stadium for the Oakland A's on the Las Vegas Strip. That bill passed the Assembly 25-15. (Two lawmakers were excused from that vote.) The razor-thin film tax credit bill vote was not the only dramatic moment in the Assembly Friday. Earlier in the floor session, Assembly Bill 500 fell short of the required two-thirds approval it needed to pass the chamber. The bill would have allowed for payment banks, a new type of financial institution that focuses solely on payment processing rather than lending. Assembly Speaker Steve Yeager, who sponsored that bill, believes the bill will create competition in the financial services industry and lower costs for businesses by cutting out financial middlemen. The Assembly vote was 25-17, a simple majority but three short of the two-thirds it needed because it would raise state revenue. Six Democrats and 11 Republicans opposed the bill. Four Republicans and 11 Democrats supported the bill. Immediately after the bill failed, a motion was made to reconsider the vote and move the bill to the chief clerk's desk. Yeager said afterward he wasn't surprised by the outcome, adding that he wasn't sure he had the votes it needed but decided 'to put it out there and see.' He dismissed the notion that some Democrats may have withdrawn support after learning that the Nevada Firearms Coalition PAC was privately urging Republicans to support the bill, something Yeager and others in his caucus apparently did not know until it was reported by The Nevada Independent days earlier. Yeager chalked up the vote to lawmakers being hesitant about complex financial banking legislation. He added that he plans on having 'a few more conversations' about the bill on Saturday to see if another vote is possible. Because of procedural rules, AB500 needs to pass the full Assembly on Saturday in order to have a chance at making it to the governor's desk. The 2025 Legislative Session adjourns Monday.
Yahoo
12-05-2025
- Business
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Lawmakers forge ahead with film tax credits bill, precarious economic outlook notwithstanding
'This has no impact on the current budget,' said Assemblymember Sandra Jauregui, noting the tax credits wouldn't kick in until 2028. (Photo: Richard Bednarski/Nevada Current) Lawmakers appear open to advancing a proposal that would greenlight $1.8 billion in tax breaks to the film industry over 15 years because the proposal would give nothing away in the upcoming two years. Assembly Bill 238 would massively expand Nevada's film tax credit program to support the build out and operation of a 31-acre film hub currently referred to as the Summerlin Production Studios Project after the Las Vegas neighborhood where it would be located. Sony Pictures, Warner Bros Entertainment, and Howard Hughes Holdings are attached to the project. Largest public subsidy in state history makes legislative debut The bill, which received a policy hearing in early February, was heard by the Assembly's finance committee on Friday. AB 238 would set aside $120 million in film tax credits annually for 15 years — $95 million for productions at the Summerlin studio and $25 million for productions not tied to the studio. That's a twelvefold increase over the state's current film tax credit program, which is capped at $10 million annually. But the increase wouldn't kick in until July 2028. That means the Legislature does not have to consider the $95 million in tax credits as part of the biennium budget it is currently working on Lawmakers would only have to consider a relatively small $206,000 fiscal note submitted by the Governor's Office of Economic Development, whose Nevada Film Office wants additional staff to administer the program. 'This has no impact on the current budget,' emphasized Assemblymember Sandra Jauregui, who is sponsoring the bill with Assemblymember Danielle Monroe-Moreno. But at least one lawmaker raised the possibility that economic uncertainties may linger beyond the upcoming biennium cycle. 'Let's say that we get yet another Economic Forum with a similar outlook that we had last week,' said Assemblymember Natha Anderson, referring to a $151 million reduction in Nevada's expected revenue forecast amid sharp economic volatility driven by Trump administration economic policies. 'Is this date set in stone? Or will there be discussion about possibly pushing it back again?' Jauregui responded that an amendment is currently being drafted proposing 'additional guardrails.' She did not elaborate, saying the language is still being finalized. Legislative staff noted that $110 million, the amount the $10 million program would expand by, represents about 1.8% of the state general fund after tax credits. As lawmakers mull massive expansion of program, WWE offers glimpse of how film tax credits work Lawmakers in the hearing discussed WrestleMania 41 and related events, which last month was approved to receive $4.2 million in transferable film tax credits. As the Nevada Current reported last month, Wrestlemania's application illuminates how the program currently operates. Assemblymember Shea Backus asked legislative staff what the WWE would have received under the provisions of AB 238. The bill, in addition to raising the annual cap, also changes the calculations used to determine the amount of transferable film tax credits each production can receive. Chief Principal Deputy Fiscal Analyst Michael Nakamoto calculated that Wrestlemania would have qualified for $8.3 million in transferable film tax credits, nearly double what it received under the program as it exists today. Backus noted that $8.3 million exceeds the amount WWE estimated it would spend on local labor and businesses. On its end, WWE estimates that its Wrestlemania events generate $200 million in economic activity for the host city. Jauregui pushed back on the narrative of the bill as a giveaway, saying it requires investment of private dollars into the state and is a job creation bill. 'The legislation will generate $3 billion in annual economic activity,' she claimed. 'That is Wrestlemania 15 times a year.' Added Monroe-Moreno, 'We have a responsibility to find ways to diversify our revenue streams in the state of Nevada. As the fiscal leader of this committee, I would have never put my name on a bill if I didn't believe it provided a pathway for us to do that.' AB 238 is one of two film tax credit expansion bills introduced this legislative session. The other is Senate Bill 220, sponsored by Democratic state Sen. Roberta Lange. SB 220 received a policy hearing last month and was referred to the Senate Finance Committee where it has not been scheduled for a hearing. Lange could not be reached for comment on the status of her bill.
Yahoo
09-05-2025
- Business
- Yahoo
2 Las Vegas movie studio projects still alive; developers explain advantages of each
LAS VEGAS (KLAS) — Dueling proposals to build Las Vegas movie studios are still alive with less than a month until the Nevada Legislature is scheduled to end its 2025 session. Both pieces of legislation — Assembly Bill 238 (AB238) and Senate Bill 220 (SB220) — are built around tax credits that could lure moviemakers, TV production companies and others, potentially laying the groundwork for a major industry that could diversify the Las Vegas economy. A Nevada Senate finance committee hearing scheduled for Friday, May 9, provides the only measure of which 'film bill' is ahead in the race: AB238, the project featuring major motion picture players Sony and Warner Bros. Discovery, is a step ahead in the legislative process. SB220 needs a similar hearing in the Nevada Assembly to keep pace. 8 News Now spoke to developers behind both projects as decisions near for lawmakers. The videos and details below summarize the strengths of each proposal: Two years ago, stars including Mark Wahlberg and Jeremy Renner were pitching the only film bill on the table. But the legislation got a late start and was ultimately shelved so the Legislature could focus on a stadium deal for the Athletics, who have left Oakland and will start playing in Las Vegas in 2028. Now, studio executives are doing the sales job themselves. Both Sony and Warner Bros sent top executives to make their case this year. It's business, and the studios have aligned with the Howard Hughes Corp. behind AB238, sponsored by Democratic Assembly Majority Leader Sandra Jauregui and Democratic Assem. Daniele Monroe-Moreno. David O'Reilly, CEO of Howard Hughes Corp., is right there with the studio execs, telling lawmakers that it's about the jobs. According to the proposal, the project would bring 19,000 construction jobs to build the studios and 17,680 permanent jobs. Good jobs, with an average salary of over $110,000. 'The unfortunate news today is that Nevada leads the nation in unemployment, and we're facing rather uncertain economic times in terms of potential recessions due to tariffs and other economic uncertainties,' O'Reilly said. 'Right now, we have the opportunity to sign a bill, the studio film tax credit bill, that would put $1.8 billion of private money in new construction and jobs tomorrow if this is passed.' The tax credits don't kick in until production begins in the studios. 'Over a billion dollars will be invested in the ground. Those jobs are there. We're growing the economy. We're putting our money first, investing in the state first, and only after that is any potential credit earned,' O'Reilly said. The site would be in Summerlin South, near Flamingo Road and Town Center Drive. Residents have expressed concerns about traffic in the area. The land is owned by Howard Hughes Corp. 'It would be a shame if we don't take the opportunity to jump on it right now,' he said. AB238 requires the studios to commit $400 million to build, plus the completion of a vocational training studio that will cost more than $8 million, and a $6 million contribution to the Clark County Redevelopment Agency. For both of the film bills, tax credits in the future provide the incentive to build and set up shop in Las Vegas. The savings come when production costs are lower because of the tax credits. And for both bills, the state's not getting anything for free. Taxes that would pay for infrastructure including roads, schools, emergency services and other costs would simply not be coming in. Opponents point out that those services would stil have to be provided, but the funding would be missing. The tax credits add up to $1.6 billion over 15 years. 'If you're just focused on the math of the credit over the term without focus on the revenue that comes back into the state, I think you're only looking at half the equation,' O'Reilly said. 'We have to look at the picture in totality. We have to look at the diversification of the economy that will occur as a result of this, and how it will insulate our economy against future downturns.' The current budget crunch only adds urgency to the need to diversify the economy, O'Reilly said. 'If we don't figure out a way to get money back into the economy today, we're only backing ourselves further into the corner,' he said. The second proposal, sponsored by Democratic State Sen. Roberta Lange, differs from the Summerlin project in several important ways. It is much more aligned with education with vocational partnerships including UNLV, CSN, Nevada State University and the Clark County School District. Those partnerships were developed over the past two years. Birtcher Nevada Development CEO Brandon Birtcher said 179 unique jobs have been identified in the Nevada Studios project, and training for each of those jobs would be available through the educational partnerships. SB220 would include $186 million for participating schools. 'This bill is much more than a film bill,' he told 8 News Now. 'It's an economic diversification act.' The project would be at the UNLV Harry Reid Research and Technology Park, near the 215 Beltway and Durango Drive in the southwest Las Vegas valley. Birtcher also points out that they will build the studios on public land. Lease payments will feed back into the educational system, generating $365 million over the life of the agreement, another benefit for the state. The buildings will be donated back to the UNLV Research Foundation. And perhaps the biggest selling point: Return on investment calculated at 102% that goes back to the Nevada State general fund, according to Birtcher. Film tax credits from SB220 would total $1.65 billion. Another goal of the Nevada Studios project involves a 50,000-square-foot building that will house the Nevada Media & Technology lab, part of the Creative Technology Initiative (CTI). SB220 is intended to support innovation in aerospace, health care technologies, video game development, artificial intelligence, virtual and extended reality, drones, and related technologies. More than $12 million in the bill will be used to develop relationships in these tech areas. 'Video game publishing is larger than television, music and movie production combined,' Birtcher said. He described MBS Group, the partner that will operate the studio, as the 'air traffic controller' for the film industry. They are involved in productions all over the world and are uniquely positioned to bring business to Las Vegas. MBS Group's involvement was elevated when Warner Bros. left to support AB238. 'We have the world's largest and most pre-eminent servicer of the industry managing this studio complex, assuring us that we'll be producing constantly in this studio complex at UNLV,' he said. There's little chance that both proposals will be approved. 'Our goal is to see if we can do a joint bill. We've always been about that,' Birtcher said. 'But in the unlikely situation that it doesn't come together and the Legislature has to pick a winner, I have no doubt which of the two bills, SB220 is a profoundly better economic situation for the state, returning more than $1 for $1 given. It has the best education-centric-ready platform from Day 1, and it returns a billion dollars of private sector money back to education through SB220,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
20-02-2025
- Business
- Yahoo
Movie Studio bills introduced in Nevada Legislature, Warner Bros. no longer involved in second proposal
LAS VEGAS (KLAS) – Two bills to bring movie studios to Las Vegas have officially been introduced into the Nevada Legislature, but 8 News Now has learned Warner Bros. Entertainment is no longer a part of the second project. Assembly Bill 238, which would put a Sony Pictures Studio in Summerlin, was introduced Monday, sponsored by assemblymember Sandra Jauregui and assemblymember Daniele Monroe-Moreno. Senate Bill 220, which would lead to building a film studio at UNLV Harry Reid Research & Technology Park, was introduced Wednesday, sponsored by State Senator Roberta Lange. Lange told 8 News Now while Warner Bros. was originally part of the bill's plan, the entertainment company did not have the same vision. 'It's really great to bring a new demographic,' Paula Lopez told 8 News Now. Lopez spoke to 8 News Now about future changes she's looking forward to seeing in her Summerlin neighborhood. 'Hopefully driving won't be too bad,' Lopez said of the studio's future location. 'But I work east, so you know.' The Summerlin Production Studios Project, a $1.8 billion plan between Sony Pictures Entertainment and Howard Hughes Holdings would feature 13 buildings including sound stages, production facilities, and mixed-use. It would be located near Flamingo Road and Town Center Drive. AB238 would provide $80 million in film tax credits from 2028 to 2043 and require at least $400 million to be invested in Nevada. According to the bill, 50 percent of photography days would have to take place in the state, and a film must be finished in 18 months. Assemblymember Sandra Jauregui called this an opportunity to expand the economy. 'We have a real opportunity to do just that,' she told 8 News Now in Carson City. 'To bring in jobs and a new industry. Hey when hospitality slows down, it doesn't matter, because this industry is going to exist.' Senate Bill 220, which would provide about $15 million in film tax credits per year over the same period, is similar with a slightly different focus; introducing college students to the industry. 'The centerpiece is UNLV and The Pipeline training, and creating workforce,' State Senator Lange said. 'CSN and NSU will also be involved.' Though Warner Bros. is no longer involved, State Senator Lange said she is still working with Birtcher Development and Manhattan Beach Studios, which will act as a broker for future development. State Senator Lange said her goal would be to eventually merge the two bills. 'I believe it's in the best interest of the state of Nevada,' she explained. Lopez told 8 News Now she is looking forward to seeing the next steps forward. 'Some new life,' Lopez concluded. 'That maybe Nevada hasn't been open to before.' State Senator Lange also said her bill would be union-built and union-operated. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
