NevadaAB23883rd Regular Session (2025)HouseWALLET

AN ACT relating to economic development; enacting the Nevada Studio Infrastructure Jobs and Workforce Training Act; requiring the Office of Economic Development to enter into a development agreement to establish certain criteria for the development of infrastructure for the production of motion pictures and other qualified productions and other new capital investment in this State; establishing certain penalties if the development does not meet certain requirements for new capital investment and expenditures for the production of motion pictures and other qualified productions; establishing requirements for a production company located at such a development to be eligible for film infrastructure transferable tax credits for qualified productions produced at the development; providing for the calculation of the amount of film infrastructure transferable tax credits; requiring the creation of a production studio entertainment district; revising provisions governing noninfrastructure transferable tax credits for motion pictures and other qualified productions produced in this State; authorizing an additional amount of noninfrastructure transferable tax credits; establishing the Account for Nevada Film, Media and Related Technology Education and Vocational Training and a board to approve distributions from the Account; providing for the distribution of money from the Account to certain entities and organizations that provide education and vocational training to develop a workforce for the production of qualified productions in this State; and providing other matters properly relating thereto.

Sponsored By: Daniele Monroe-Moreno (Democratic), Sandra Jauregui (Democratic)

Failed

BDR S-63

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 3 benefits, 2 costs, 11 mixed.

Summerlin investment targets carry financial penalties

The Office of Economic Development must sign a Summerlin development agreement within 120 days, with up to 60 extra days. Required investment, excluding hotels, reaches $400 million by June 30, 2028, and $900 million by December 31, 2029. It reaches $1.4 billion by December 31, 2032, and $1.8 billion by December 31, 2038. The agreement also sets building-space and acreage minimums; qualifying Downtown Summerlin investment counts at half its value. The Executive Director can extend investment deadlines, and missed targets have a two-year cure period. Uncured shortfalls trigger penalties and liens on undeveloped land, capped at 110% of appraised value; completed portions are protected. Liens rank behind tax and construction-loan liens, and investment completed within five years after the cure period earns partial relief. Extraordinary circumstances and documented good-faith efforts can support penalty relief; after the agreement, the Office cannot approve incentives beyond the allowed film credits.

Summerlin production spending targets carry penalties

Summerlin must generate $600 million in production spending per rolling two-year period from July 1, 2028, through June 30, 2034. From July 1, 2034, through June 30, 2043, the target is $900 million per rolling three-year period. Shortfalls greater than 2% trigger penalties ranging from $2 million to $50 million. Annual spending below $150 million triggers a separate penalty: the smaller of $10 million or the law's credit-based formula. Up to $200 million in annual spending above $300 million can carry forward to offset later shortages. The Office can reduce or waive penalties for extraordinary circumstances beyond the Project's control and documented good-faith efforts. Penalty money goes to Nevada's General Fund.

Higher statewide film credits through 2043

Statewide film-credit applications submitted July 1, 2028, through June 30, 2043, receive a 30% base rate. The base rate is 15% for applications submitted outside that period. Outside that period, an extra 5% of qualified costs is available when Nevada residents account for more than 50% of crew workdays. Another 5% is available when more than 50% of filming days occur in a qualifying Nevada county. That county must have had less than $10 million in qualified production spending in each of the two preceding years.

Higher statewide film caps retain limits

Annual statewide film-credit capacity is $25 million for fiscal years starting July 1, 2028, through June 30, 2043. The annual limit is $10 million outside that period. The per-production cap is $7 million for applications submitted during that window and $6 million otherwise. During the $25 million period, carryforward is limited to 50% of unused annual capacity. Unused capacity under the $10 million limit generally carries forward, but pre-July 2028 capacity cannot cross into later fiscal years. Credits expire at the end of the calendar year six years after issuance.

Summerlin film credits face annual limits

Starting July 1, 2028, Summerlin film-credit approvals have a $95 million annual cap, plus allowed carryforward. Up to $47.5 million in authorized but unapproved credits can carry forward for approval only in the next year. Carried credits must be approved first; approvals before July 1, 2028, count toward fiscal year 2028–2029. Applications submitted in fiscal years starting July 1, 2043, or later cannot be approved. Issued credits expire at the end of the calendar year six years after issuance.

Summerlin film credits require local commitments

Beginning June 1, 2026, companies at Summerlin can apply before filming for transferable credits worth 30% of qualified production costs. Productions must be made there at least partly, secure 70% of funding, and incur at least $500,000 in qualified costs. They must also film at least 50% of principal photography days in Nevada or incur $5 million in qualified Nevada costs. Workforce plans, audits, records, licenses, registration, insurance, Nevada promotion, and tax notices are required; credits cannot be used before July 1, 2028. Applications more than 36 months after the development agreement face separate 5% credit reductions for each failed workforce test. Those tests require at least 50% Nevada-resident crew workdays and documentation of at least two specified workforce or training requirements. The Director must waive reductions upon written proof of good-faith efforts and too few available, qualified workers. The Office cannot issue credits if the Project fails its required criteria, even after a production receives eligibility approval.

Studio district taxes fund preschool programs

Clark County must create a studio entertainment district within Summerlin Project parcels in unincorporated Clark County. Parcels with businesses requiring gaming licenses are excluded. District proceeds from a 2% lodging tax, specified property taxes, and the basic city-county relief tax support school-district prekindergarten programs only. Agencies must track district receipts separately, and district businesses must follow those tracking procedures. The school district must keep the money in a separate account; the law sets no total funding amount.

More film training and community funding

The agreement requires at least $8 million for a Nevada Partners training studio by June 30, 2030. If the site is inviable or Nevada Partners ends without a successor, an approved alternative is due June 30, 2031. The Project must contribute at least $6 million to Clark County within five years after the agreement. That money supports film-related arts, culture, and small-business training in Sunrise Manor Town, Whitney Town, and Winchester. A new state account funds production-workforce grants: 30% of grant distributions supports studio operations and overhead, and 70% supports education and training organizations. Transfers, appropriations, donations, and earnings can fund the account; unused balances carry forward, and no total funding amount is set.

Film companies pay for workforce training

Companies receiving either type of film credit must pay the Office 1% of their issued credits. Payment is due within 60 days after using credits or notifying the Office of a transfer. The money goes to Nevada's film, media, and technology education and vocational training account.

Film companies must promote Nevada

Statewide film-credit applicants must agree in writing to include the Nevada logo in end credits. Without end credits, they must use another acknowledgment or an Office-approved promotion. They must also send tax-information notices to Nevada production vendors engaged for at least $10,000 in total. Notices are due within 30 calendar days after payment and explain employer-wage taxes, commerce tax, and Department of Taxation resources.

Broader media eligibility keeps production tests

Video games, digital media, and mobile apps can qualify for Nevada production credits. Social-media-only productions, news, political ads, and sporting events remain excluded. Statewide applicants must apply before filming, secure 70% of funding, and film at least 50% of principal photography days in Nevada. Instead of that filming test, they can incur at least $5 million in qualified Nevada production costs. The law removes the separate economic-interest test, but productions subject to federal performer-record requirements under 18 U.S.C. § 2257 cannot qualify.

Film credit enforcement protects honest buyers

The Director can reduce statewide credits for public damages or withhold them for pending Nevada cases, legal violations, or knowing false statements. The Director must review company records and find good cause, reasonableness, and a proportionate amount. Summerlin credit recipients must repay credits they were not entitled to after knowing false submissions or later ineligibility. Companies can retain otherwise valid credits when unforeseen events beyond their control caused ineligibility. Good-faith buyers of transferred credits are protected from repayment or forfeiture unless they submitted fraudulent purchase information.

Film credit recipients face production deadlines

For both credit programs, approved companies must begin principal photography within 90 days after the Office's decision. The Office can allow up to 90 extra days, or longer for events beyond the company's control. Production must finish within 18 months after photography begins, with an extension of up to six months. Companies must submit required final reports and provide missing information within 30 days after receiving notice.

Film payroll credits vary by date

Statewide film credits cover customary, reasonable production costs, including eligible payroll and in-state services through registered qualified entities. For applications before July 1, 2028, or on or after July 1, 2043, producer-compensation caps are 10% for residents and 5% for nonresidents. Those periods also have a $750,000 cap on eligible below-the-line compensation. Nonresident above-the-line wages and benefits count at 12% in the base-credit calculation; nonresident below-the-line wages do not count. Applications from July 1, 2028, through June 30, 2043, have a 10% producer-compensation cap. Reimbursed costs, previously credited costs, and related-party charges above fair market value do not qualify.

Statewide film credits need spending audits

Statewide applicants must submit an approved Nevada CPA audit within 365 days after photography ends, or after Nevada postproduction ends. The Office can allow up to 180 extra days. Audits must show $500,000 in qualified costs, or at least $5 million in Nevada costs when that eligibility test applies. They must include vendor-payment details and proof of required licenses and registrations. After receiving all required materials, the Office has 45 business days to decide whether to certify the audit and approve credits. Following approval notice, companies have 90 days to permanently assign all credits among eligible taxes and fees before certificate issuance.

Statewide film credits require workforce plans

Statewide film-credit applicants must set goals for a diverse workforce, minority-owned or woman-owned vendors, and required workforce programs. Final assessments are due within 365 days after principal photography ends, with extensions of up to 180 days. Applications from July 1, 2031, through June 30, 2043, lose 5% of cumulative credits if resident crew workdays fall below 50%. A separate 5% reduction applies without proof that at least two specified workforce-diversity or training requirements were met. The Director must waive a reduction upon written proof of good-faith efforts and too few available, qualified people. Resident shares use workdays rather than head counts; extras, now called background actors, are excluded from the below-the-line category.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 22 • No: 20

House vote • 5/30/2025

Final Passage - Assembly (1st Reprint)