Overhaul film tax credit in Nevada, Sony CEO says
A proposed film tax credit program overhaul would be the key to develop a film and television industry in Southern Nevada, the president and CEO of Sony Pictures Entertainment said Thursday.
Sony is partnering with Howard Hughes Corp. for a proposed 31-acre production campus on Town Center Drive near the 215 Beltway.
Sony Pictures Entertainment President and CEO Tony Vinciquerra said Sony’s project already received zoning approval from Clark County officials in March, so the last piece missing is state support via tax credits. He said the company worked with former Gov. Steve Sisolak’s administration on the plan and is now working with Gov. Joe Lombardo’s team.
“We’re, for lack of a better term, shovel ready,” Vinciquerra said. “As soon as we have the agreement from the Legislature to provide incentives, we’ll start digging and we’ll be up and running within a year.”
Vinciquerra was in Las Vegas Thursday to speak at Las Vegas Perspective, the 44th annual economic forum hosted by the Las Vegas Global Economic Alliance. About 900 businesspeople attended the event at Caesars Forum to hear executives discuss the challenges and opportunities of growth in Southern Nevada. Film studio and medical executives made a case for diversifying the economy through their industries.
Sony and Howard Hughes say they expect to spend $500 million to build the studio of 10 stages and supporting workshops, cafeteria and office space. They project it to add 19,000 construction jobs during development and 15,000 studio and ancillary jobs when in operation.
The discussion comes the same week of another film studio proposal. Warner Bros. Discovery announced Tuesday that it intends to build a 34-acre campus and spend $8.5 billion over 17 years — if it receives tax credits for the project.
Film incentives need legislative approval
Both developments rely on the outcome of a state legislative proposal for film tax credit expansions proposed by Sen. Roberta Lange, D-Las Vegas, in the 2025 session. In a news release on Tuesday, Lange said her 2025 proposal could create up to $95 million in annual film tax credits.
Studios must first build infrastructure to be eligible. Architects of the proposal say this is to encourage long-term commitments from studios, instead of incentives that only bring film crews to the community for local production.
David O’Reilly, CEO of Howard Hughes, said he thought Warner Bros.’ proposal showed the industry buy-in to develop Las Vegas’ film industry long term.
“I think more than anything else, seeing other production companies like Warner Brothers and the others that have called Tony and myself are a validation of the opportunity we have here in Las Vegas to become the next film capital of the world,” O’Reilly said.
Perspective speakers also highlighted the medical industry as a sector for economic diversification. Clark Otley, chief medical officer of Mayo Clinic platform, described strategic economic development plans established in Rochester, Minnesota, where the medical center is located. He said the main takeaway for Las Vegas is that it should invest in a long-term vision instead of building to contemporary standards.
“Don’t build the health care of today,” he said. “Leapfrog and build the health care of tomorrow. Think about what amazing things you do, where you have real content expertise and try to win in those regards.”
Applied Analysis Jeremy Aguero said Vegas-area leaders must consider slowing population growth, stubborn unemployment rates, shrinking land availability and housing costs as factors in economic diversification.
“We need to be intentional about how we grow and what it means in terms of housing, in terms of transportation, in terms of the industries that we focus on,” Aguero said. “Because if we just let it happen to us, it’s going to break the thing that has worked so well for all of us.”
Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.