Nevada film tax credit bill clears Senate, heads to Assembly
CARSON CITY — The Senate on a 13-8 vote Tuesday approved a bill to give tax credits to movie companies that film in Nevada.
The tax credits would be limited to
$20 million a year for four years under Senate Bill 165. Companies could receive a 15 percent savings on production costs, as long as 60 percent of the costs are spent in Nevada.
The bill has a long way to go before it becomes law. It must be heard and passed in the Assembly, and then it must be signed by Gov. Brian Sandoval. The Legislature is set to adjourn Monday.
State Sen. Aaron Ford, D-Las Vegas, said companies are filming movies about Nevada and Las Vegas in other states because they offer tax incentives.
“When we offer a reasonable incentive, they will come to Nevada,” he said.
Ford first proposed $50 million in annual tax incentives, a plan critics considered much too costly for a state just exiting the recession. As it is, state employees are rallying today in Carson City and Las Vegas to protest wage cuts of nearly 5 percent that they have endured since 2009.
Of the 10 Senate Republicans, only Mark Hutchison of Las Vegas and Pete Goicoechea of Eureka favored the tax incentive bill.
During hearings, actor Nicolas Cage visited the Legislature and Sandoval to tout the bill.
“It is exciting to have a celebrity visit us, but not at the expense of good tax policy,” said Sen. Greg Brower, R-Reno.
He said the money should be spent instead on education, public safety or law enforcement. Brower also cited a Tax Foundation study that found that states offering subsidies have not all made money out of the incentives. Louisiana loses $48 million a year, according to its legislative study.
Ford said none of the 45 states with incentives has repealed its film subsidy law, although some have made changes.
Senate Majority Leader Mo Denis, D-Las Vegas, said Nevada offers what film companies want: Las Vegas, which is close to Hollywood and Reno, and which has unique attractions; and rural Nevada, which has small towns, desert, mountains, lakes and forests.
