Existing law establishes a program for the issuance of transferable tax credits by the Office of Economic Development to the production company of a motion picture or other qualified production, based upon qualified direct production expenditures made for the purchase of personal property or services from a Nevada business. (NRS 360.758-360.7598) This bill revises provisions governing these transferable tax credits and enacts the Nevada Film Studio Infrastructure Act to authorize film infrastructure transferable tax credits for qualified productions produced at the site of the Las Vegas Media Campus Project and the Summerlin Production Studios Project. Sections 1-19 of this bill enact the Nevada Film Studio Infrastructure Act, which provides film infrastructure transferable tax credits for production companies located within: (1) the Las Vegas Media Campus Project, which is a proposed development located at the Harry Reid Research and Technology Park on the University of Nevada, Las Vegas campus, and which is also referred to as Zone 1; and (2) the Summerlin Production Studios Project, which is also referred to as Zone 2. Sections 1-19 allocate a specified amount of transferable tax credits for qualified productions produced within each of these Zones. Section 10 of this bill requires the Office of Economic Development to enter into a development agreement with the lead participant of each Project to establish certain investment and development criteria that the Projects are required to satisfy in exchange for production companies located at the Projects to be eligible for film infrastructure transferable tax credits. Section 11 of this bill authorizes the lead participant of each Project to: (1) elect, not later than 24 months after the execution of a development agreement with the Office, whether a production company must obtain the approval of the lead participant before applying for film infrastructure transferable tax credits; and (2) change that election at certain intervals. Section 12 of this bill: (1) authorizes production companies located at each Project to apply to the Office for film infrastructure transferable tax credits for qualified productions produced at the Project; (2) establishes the date on which those production companies are authorized to begin applying for film infrastructure transferable tax credits; and (3) authorizes such credits to be used against the modified business tax, insurance premium tax or gaming license fee, or any combination of these taxes and fees. Sections 13 and 15 of this bill establish the production expenditures which are the basis for calculating the amount of film infrastructure transferable tax credits. Section 14 of this bill provides that the base amount of film infrastructure transferable tax credits is 30 percent of the amount of qualified direct production expenditures calculated under sections 13 and 15. Under section 12, the amount of film infrastructure transferable tax credits issued for a qualified production is reduced by 10 percent of the amount of the credits issued and an amount of money equal to the amount of that reduction must be transferred to the Account for Nevada Film, Media and Related Technology Education and Vocational Training created by section 30 of this bill. Section 16 of this bill: (1) limits the total amount of film infrastructure transferable tax credits issued pursuant to sections 1-19; (2) authorizes the lead participant of each Project to establish exceptions to certain limits on the amount of film infrastructure transferable tax credits for a single qualified production at that Project; and (3) prohibits the approval of application for film infrastructure transferable tax credits if the application is submitted in a fiscal year that begins at least 20 years after the Las Vegas Media Campus Project becomes eligible to apply for film infrastructure transferable tax credits or June 30, 2048, if the Las Vegas Media Campus Project does not become eligible for the film infrastructure transferable tax credits. Section 17 of this bill requires the Executive Director of the Office to approve applications for film infrastructure transferable tax credits if the production company submitting the application is eligible for such credits. Section 19 of this bill requires certain reports to be made to the Legislature concerning film infrastructure transferable tax credits. Sections 20-23 of this bill make various changes to the existing law governing the noninfrastructure transferable tax credits for motion and other productions. (NRS 360.758-360.7598) Section 20 of this bill: (1) provides that digital media productions are qualified productions for the purposes of eligibility for film infrastructure transferable tax credits and noninfrastructure transferable tax credits; and (2) clarifies that media productions solely produced for social media are not eligible for such transferable tax credits. Section 21 of this bill: (1) provides for the amount of noninfrastructure transferable tax credits issued for a qualified production to be reduced by 10 percent of the amount of transferable tax credits issued; and (2) requires the transfer of the amount of that reduction to the Account for Nevada Film, Media and Related Technology Education and Vocational Training created by section 30. Section 22 of this bill increases the base amount of transferable tax credits from 15 percent of the qualified direct production expenditures to 30 percent of the qualified direct production expenditures, subject to the transfer of money in an amount equal to 10 percent of any credits issued to a production company to the Account for Nevada Film, Media and Related Technology Education and Vocational Training. Section 23 of this bill temporarily increases from $10,000,000 to $15,000,000 the total amount of noninfrastructure transferable tax credits for motion picture and other qualified productions that may be issued under the existing program for each fiscal year beginning on or after July 1, 2023, until June 30, 2043. Sections 25-32 of this bill establish a program to provide grants to certain organizations that provide education and vocational training for workforce development in the production of motion pictures and other qualified productions. Section 30 establishes the Account for Nevada Film, Media and Related Technology Education and Vocational Training for the purpose of allocating money to certain entities and organizations that provide education and vocational training for such workforce development. Sections 12 and 21 require the transfer of certain money to the Account. Under section 30, money in the Account does not revert at the end of a fiscal year and must be carried forward for expenditure in the next fiscal year. Section 30 requires the allocation of 45 percent of the money transferred to the Account to the Nevada Media Lab established at the Las Vegas Media Campus Project for the operation and overhead costs of the Nevada Media Lab and the allocation of the remaining money transferred to the Account to educational and vocational training organizations for programs for workforce development for the production of qualified productions in this State. Section 31 of this bill establishes and provides for the composition of the Board for Nevada Film, Media and Related Technology Education and Vocational Training within the Office of Economic Development. Section 32 of this bill: (1) requires the Board to establish procedures for applying for a grant from the Account and the criteria to be used to determine whether to make a grant to an applicant; and (2) prohibits the making of a grant from the Account unless the Board approves the application for the grant. Section 36 of this bill provides for the expiration of the provisions of this bill.

Statutes affected:
As Introduced: 360.7586, 360.759, 360.7592, 360.7594, 360.7595
Reprint 1: 360.7586, 360.759, 360.7592, 360.7594, 360.7595
BDR: 360.7586, 360.759, 360.7592, 360.7594, 360.7595