Sony Pictures and Warner Bros./Discovery want big tax breaks to move their big movie companies to Nevada.
Hollywood Studios Seek Major Tax Breaks in Nevada
According to the report of Reno Gazette Journal, Sony Pictures Entertainment and Warner Bros./Discovery want to set up major film studios in Nevada and are asking the state for big tax breaks to make it happen. Sony plans to build a 31-acre studio in Summerlin, Las Vegas as its only studio outside Los Angeles.
This project could bring in $1 billion in production spending over ten years and create thousands of jobs but it depends on changing Nevada’s film tax credit program. Warner Bros./Discovery is looking to build a 34-acre studio at UNLV’s Harry Reid Research & Technology Park with an expected investment of $8.5 billion over the long term.
For their plans to go forward, both companies need the state’s new tax breaks. A tax credit plan that would give out $190 million a year for twenty years has been on the state’s mind. For now, though, the talks have lowered this amount to $100 million a year.
According to the studios, these tax breaks are necessary for their projects to work because they will have a big impact on the economy and create many jobs. People will likely argue a lot about whether these tax breaks are worth it.
Will Tax Incentives Secure Its Future?
These companies could change Nevada’s role in the movie business if they come here. Their plan was to use Nevada’s already strong entertainment industry and skilled workers to help make Las Vegas a big film production hub.
Tony Vinciquerra of Sony and David O’Reilly, CEO of Howard Hughes, both think that Las Vegas is appealing to people in the business because it is close to Hollywood and has a lot of experience with production services.
When the 2025 legislative session starts, these projects’ fate will rest on whether the state is willing to use these tax breaks to support its growing film industry.
To sum up, the studios that Sony and Warner Bros./Discovery want to build could be very good for Nevada’s economy. They could bring in big investments, make Nevada an important player in the movie business, and create a lot of well-paying jobs.
Nevada’s future in film production and its place in relation to standard hubs like Los Angeles will depend on what the state does about tax breaks.