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 production-related expenditures made for the purchase of personal property or services from a Nevada business. (NRS 360.758-360.7598) Existing law requires the Office of Economic Development to calculate the amount of transferable tax credits issued to an eligible production company such that the base amount of transferable tax credits issued to an eligible production company equals 15 percent of the qualified direct production expenditures. (NRS 360.7592) This bill provides for an increase in the base amount of transferable tax credits issued to an eligible production company if the production company incurs: (1) qualified direct production expenditures equal to or exceeding certain amounts for qualified productions in this State; or (2) $1 billion or more in qualified direct production expenditures for qualified productions of the production company and makes a capital investment of at least $500,000,000 in this State. Existing law provides that: (1) the total amount of transferable tax credits the Office of Economic Development is allowed to approve for the production of films and certain other productions is $10,000,000 per fiscal year; and (2) the maximum amount of transferable tax credits that may be issued for a qualified production is $6,000,000. (NRS 360.7594) This bill maintains these limitations and, thus, an eligible production company that qualified for the increase in the base amount of transferable tax credits set forth in this bill would be subject to the limitation on the amount of transferable tax credits that may be issued for a qualified production and the limitation on the total amount of transferable tax credits that may be approved for a fiscal year.

Statutes affected:
As Introduced: 360.7592, 360.7593
BDR: 360.7592, 360.7593