Latest news with #RobertaLange
Associated Press
29-05-2025
- Business
- Associated Press
Nevada film credit expansion backers still confident despite critical reports
Backers of the two bills to significantly expand Nevada's film tax credits remain confident in their proposals even after recent state-commissioned reports cast doubt on their likelihood of being financially sustainable. In correspondence shared with The Nevada Independent, Sen. Roberta Lange (D-Las Vegas) criticized an independent report commissioned by the Governor's Office of Economic Development (GOED), saying the analysis of her bill ( SB220 ) had 'flawed and misleading conclusions.' Meanwhile, the proponents of the bill sponsored by Assm. Sandra Jauregui (D-Las Vegas) and led by Sony Pictures and Warner Bros. Discovery ( AB238 ) did not push back against the report's findings, but provided additional context as to why the third-party analysis differed from their own fiscal estimates. The responses reflect the confidence that each side has in their own proposals heading into the home stretch of the legislative session. Given the state's precarious financial situation, legislators are skeptical about whether the projected economic benefits are enough to offset the massive tax credit expansion. Lange has proposed a merger of the two proposals that would decrease each project's allocation of film tax credits but increase the overall price tag to about $2.2 billion over 18 years, The Indy reported Wednesday. The GOED-commissioned reports, first reported by The Indy and conducted by the Arizona-based firm Applied Economics, cast doubt on both proposals' long-term economic viability. Though they expected a significant economic return on investment — meaning ripple effects in the economy of (which they acknowledged was difficult to predict), the analyses estimated that the amount of recouped direct tax revenue would fall far short of breaking even with how many tax credits were invested. In other words, the bills could benefit the economy at large even though they would bring a negative return on investment when looking at just the public funds involved. But is that deterring the lawmakers who may soon decide the idea's fate? Several prominent legislators — including Senate Majority Leader Nicole Cannizzaro (D-Las Vegas) and Senate Finance Chair Marilyn Dondero Loop (D-Las Vegas) — told The Nevada Independent on Tuesday that they were still assessing the proposals. Jauregui and Assembly budget chair Assm. Daniele Monroe-Moreno (D-North Las Vegas), the two primary sponsors for the bill backed by Sony and Warner Bros, said Tuesday they had not read the state's report. However, Assm. Brian Hibbetts (R-Las Vegas), one of several members to vote the Sony-backed bill out of committee while reserving his right to change his vote on the floor, said while he had not read the full report, the initial reporting 'does not bode well, in my opinion, for either one of those measures.' Progressives have pushed back on the film tax credit measure, with the Executive Director of Battle Born Progress Shelbie Swartz saying that the analyses from the Governor's Office of Economic Development prove that expanding film tax credits is unsustainable. 'These tax credits are and always have been an unprecedented corporate handout,' Swartz said. 'Now, lawmakers and Nevadans everywhere deserve transparency and the full release of this analysis to see just how bad this deal really is.' Lange's bill The state-issued report brought particularly negative news for Lange's bill, which has not yet received a hearing in a pivotal money committee. Her proposal calls for $1.6 billion in film tax credits across an 18-year period (the current film tax credit program would instead set aside $180 million during that same time frame) and the creation of a nonprofit supporting a UNLV-affiliated research center. The independent report's estimate of state and local tax revenues on Lange's proposal came in 341 percent and 169 percent lower, respectively, than the analysis by the firm hired by Birtcher Development and other backers. It acknowledged that these differences were likely attributable to differences in modeling and methodology. The analysis also expected a significant decrease in the fiscal (taxpayer dollar) return on investment in Lange's bill. In a response shared with The Nevada Independent, Lange pushed back on the independent report's economic impact model, which is based on historical assumptions and is one that the state frequently uses for economic analyses. When the bill's proponents commissioned an economic analysis, it relied on a model that used real-time market data, she said. 'While we welcome analytical rigor, we reject the suggestion that historical assumptions from unrelated employment categories should dictate future opportunity for Nevada and its citizens,' Lange said in her response. Lange said that the analysis 'grossly understates the job creation and income effects for local workers' by expecting that 25 percent of the jobs created would be sourced locally, while proponents project that number to actually be 75 percent. That delineation is not specifically outlined in the report. Lange also criticized the report for not addressing a three-year ramp-up period, which she said in an interview would have increased the estimated job and revenue numbers. Her bill's proponents also said they believe the report mischaracterized the kinds of jobs that would be created under the project, which resulted in lowballing estimated wage numbers. And she criticized the report for doubting the verifiability of tourism related to film production 'despite strong industry precedent and recent global benchmarking studies,' citing a study on Nevada's film tax credits conducted last year. Sony, Warner Bros. bill AB238, sponsored by Jauregui, proposes appropriating $95 million in annual transferable film tax credits for 15 years beginning in 2028, an 850 percent increase from the amount that would be set aside under the state's existing film tax credit program. An amended version would also create a special entertainment district to funnel revenue from certain local taxes related to the film production toward the Clark County School District (CCSD) to build up pre-K programs. There are different estimates on how many pre-K seats it would fill, ranging from 2 percent to 5 percent of current need. The independent report on Jauregui's bill showed a fiscal return on investment ($0.52 for every dollar invested) higher than what proponents of the measure projected ($0.46 for every dollar). However, the independent analysis stated that this 'does not ensure that sufficient new tax revenue will be generated for this type of incentive to be sustainable.' In response to the report, proponents of Jauregui's bill told The Indy that although the analysis expected slightly lower economic return across the 15-year period, this was likely because of different types of calculations, such as the monetary amount of sales per square foot of land. Supporters also acknowledged that their own report might have been 'overly conservative' on sales and use taxes related to construction that 'may warrant future reevaluation.' ___ This story was originally published by The Nevada Independent and distributed through a partnership with The Associated Press.
Yahoo
14-04-2025
- Business
- Yahoo
Second film bill billed as ‘not just a film bill'
Nevada Studios rendering (Photo courtesy of UNLV) Lawmakers on Thursday considered the second of two bills seeking to massively expand Nevada's film tax credit program, though the bill sponsor attempted to frame her proposal as 'not just a film bill.' 'Yes, we will build studios,' Democratic state Sen. Roberta Lange told lawmakers on the Senate Revenue and Economic Development Committee, which held a hearing for the bill on Thursday before referring it to the Senate Finance Committee. 'We will be making movies. We will be making shows. But that's just the beginning.' Lange's Senate Bill 220 seeks $1.6 billion in public subsidies over 18 years to support the construction and operation of a 34-acre film and production campus planned for a southwest Las Vegas lot owned by the University of Nevada Las Vegas. Nevada's film tax credit program would jump from $10 million annually to $98 million in three years, then remain at $98 million annually for 15 years. For that investment, the project is promising $9.8 billion in total production spending and the development of workforce pipelines into new industries. The campus would also include a dedicated media and technology lab for use by UNLV, Nevada State University, and College of Southern Nevada, as well as a second lab focused on creative technologies used both for entertainment and non-entertainment industries like defense and healthcare. Lange emphasized the project will be built on public land and is a public-private partnership. 'That structure ensures that this development doesn't just benefit a single company or a single decade,' she added. 'It becomes a long-term public asset.' Birtcher Development is developing the project and would own the buildings on the property. Birtcher would lease the land for 100 years. MBS Group, a film and television studio operator associated with more than 1,000 productions per year in studios across the globe, has signed on as the lead occupant of the studio space. Consulting firm Camoin Associates estimates nearly 3,000 jobs would be created during construction and around 8,800 jobs would be created permanently. They estimate the total economic output at $33.3 billion over the 18-year period. About $607 million of that would be directly through new state revenue — commerce, modified business and sales taxes. Put another way: Camoin estimates that for every $1 of tax credits Nevada would receive $0.38 back in taxes and see $3.31 generated through wages. SB220 would create a nonprofit called the Creative Technology Initiative focused on boosting Southern Nevada as a leader in video game design and publishing, aerospace and defense, and medical device and healthcare manufacturing. It would establish the UNLV Center for Creative Technologies. The proposal is inspired by the University of Southern California's Institute for Creative Technologies, one of 14 research centers sponsored by the U.S. Department of Defense, and the University of Utah's Division of Games, which has become a leader in the video game industry. Lange and her partners believe the initiative could tap into DOD and Veterans Affairs contracts and bring in additional billions in new economic investment over the next two decades. During the hearing for SB220, Lange did not mention the competing film tax credit proposal, Assembly Bill 238. That bill, sponsored by Democratic Assemblymembers Sandra Jauregui and Danielle Monroe Moreno, would establish a film and production studio in Summerlin. Sony Pictures, Warner Bros Discovery, and Howard Hughes Holdings are attached to the project. Those partners previously worked with Lange on a film tax credit bill introduced in 2023. That bill, which asked for a staggering $4.9 billion in tax breaks over 25 years, languished and never made it out of its first committee, meaning this year's duo of bills have already gone further. Lange has previously said the partners 'went radio silent' on her during the interim period between sessions and reemerged with a new bill sponsored by other lawmakers. She's also said she believes the film tax credit bills should be combined. Like Lange's bill, the assembly bill was advanced out of the chamber's revenue committee without recommendation after a lengthy hearing and referred to the chamber's finance committee. Either proposal would amount to the largest public subsidy ever approved by the state. Both are being considered at a time when lawmakers are openly worried about revenue shortfalls caused by a downturn in the economy, federal cuts to widely used programs like Medicaid, or both. Lange acknowledged those concerns in her presentation. 'We are facing real economic headwinds,' she said. 'This is not an optimistic time. Instabilities in markets and the economy will affect Nevada more than most. We are all asking 'where do we go from here?'' SB220, she added, is 'a beacon of hope and a way forward that is visionary and practical.' Both film tax credit bills are exempt from standard legislative deadlines. The legislative session runs through June 2.
Yahoo
20-02-2025
- Business
- Yahoo
Parallel film tax credit proposals should be single bill, says sponsor (of one of them)
State Sen. Roberta Lange is sponsoring one of two film tax credit bills in the Legislature. (Photo: Richard Bednarski The debate over whether to massively expand the state's film tax credit program in hopes of transforming Las Vegas into 'Hollywood East' has returned to the Nevada State Legislature. And, like with many sequels, the drama may be amped up. State Sen. Roberta Lange is sponsoring Senate Bill 220, which over several years would expand the state's film tax credit up to $83 million per year and establish the Nevada Studios Project at UNLV's Harry Reid Research Park in the southwest part of the Las Vegas Valley. Meanwhile, Assemblymember Sandra Jauregui is sponsoring Assembly Bill 238, which would expand the state's film tax credit to $80 million per year and establish the Summerlin Production Studios. Jauregui introduced the film tax credit bill on Monday. Lange introduced hers on Wednesday. 'We have to bring these film bills together or they're not going to get passed,' said Lange, theorizing that both bills will get stuck in the joint finance committee if they advance out of their initial chamber-specific committees. Both film studio projects were proposed under the same bill during the 2023 Legislative Session. That bill, which Lange alone sponsored, sought $190 million in transferable film tax credits annually, which worked out to a staggering estimated price tag of $4.9 billion in tax breaks over 25 years. The bill never advanced out of committee. This year's duo of film tax credit proposals don't change the in-perpetuity annual price tag by much. Together they propose $163 million in annual film tax credits, an astronomical jump from the current cap of $10 million annually. Sony Pictures Entertainment and developer Howard Hughes Corporation are working together on the Summerlin studio bill with Jauregui, who could not be reached for comment Wednesday. Lange told the Nevada Current she 'graciously allowed' the Summerlin studio project to be included in her 2023 bill, which was originally focused only on the Nevada Studios Project with Birtcher Development and UNLV. Lange says she'd expected work to continue with Sony during the legislative interim. 'Then, they went radio silent and announced their own bill,' she said. 'So they're on a different path. I'm going to continue the path that I think is right for Nevadans. We can find common ground together.' Warner Brothers/Discovery last year announced they would be a partner in the Nevada Studios Project but a few months later backed away. The parting was amicable, says Lange. 'They just didn't really feel like our vision fit their vision,' she said, 'and I can respect that. … I know they're still interested in Nevada film, but I'm not sure what that looks like for them.' The Nevada Studios Project still has an anchor to Hollywood: Manhattan Beach Studios Group, which has publicly attached to the project since spring of last year. While not as recognizable a name as Warner Bros, MBS Group is a well established film and television studio operator. They work in 120 countries, 600 stages, and more than 1,000 productions per year, according to the company's website. 'The Mandalorian,' the 'Avatar' sequels, and several Marvel Studios films were shot at the company's 22-acre MBS Media Campus in Los Angeles. Lange says workforce development and education are a big component of the Nevada Studios Project. The bill requires that the campus include a dedicated 'media and technology lab' designed for use by colleges and K-12 schools for education and vocational training. Critics of film tax credit programs often describe them as a 'race to the bottom' egged on by large corporations who force states to compete against one another by offering larger and larger subsidies. They point to studies finding film tax credits offer a poor return on investment, making between 15 and 69 cents for every dollar spent. Georgia, for example, has heavily invested in film tax credits, even earning the nickname 'Hollywood of the South,' but only saw 19 cents for every dollar spent, according to an analysis done by Georgia State University. Lange says she wants Nevada Studios Project to have a $1-to-$1 ROI. Supporters of film tax credit programs typically rely on 'ancillary' or indirect jobs, such as the drycleaners and caterers serving the productions, to boost their promised economic impact. Neither film tax credit bill has been scheduled for a committee hearing yet. Lange's SB220 was referred to the Senate Committee on Revenue and Economic Development, while Jauregui's AB238 was referred to the Assembly Committee on Revenue. The Assembly bill is exempt from standard legislative deadlines, and the Senate bill is likely to receive the same exemption. That exemption gives lawmakers more wiggle room for discussing and advancing the bill between now and the end of the legislative session in early June. Gov. Joe Lombardo, who gets to veto or approve any bill passed by the Legislature, expressed skepticism about expanding the film tax credit program when asked about it by KTNV earlier this month.
