Latest news with #SenateBill220
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
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.
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.
