Sony Pictures and Warner Bros./Discovery are seeking significant tax breaks to establish major film studios in 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.
Both studios need the state’s new tax incentives to move forward with their plans. The state has been considering a tax credit program that would give out $190 million a year for twenty years. However, the latest talks have reduced this amount to $100 million a year. The studios argue that these tax breaks are crucial for their projects to succeed pointing to the significant economic benefits and job creation they would bring. There is expected to be a lot of debate about whether these tax breaks are worth it.
(photo: Reddit)
Will Tax Incentives Secure Its Future?
If these studios come to Nevada, they could change the state’s role in the film industry. They would use Nevada’s existing entertainment resources and skilled workers to help make Las Vegas a major film production center. Sony’s Tony Vinciquerra and Howard Hughes CEO David O’Reilly believe that Las Vegas is attractive to industry professionals because it is close to Hollywood and has a lot of expertise in production services. As the legislative session in 2025 approaches and the future of these projects will depend on whether the state is willing to invest in its growing film industry through these tax incentives.
In summary, the proposed studios by Sony and Warner Bros./Discovery could bring significant economic benefits to Nevada. They could attract major investments, create many high-paying jobs and make Nevada a key player in the film industry. The state’s decision on tax incentives will be crucial in shaping Nevada’s future in film production and its role compared to traditional hubs like Los Angeles.
