Film tax incentives

Those who’d like to see Nevada match the kind of tax incentives offered roving film production companies by other states point to the irony that the forthcoming CBS-TV series on the life and times of former Clark County Sheriff Ralph Lamb – dubbed “Vegas” – is being filmed in and around Las Vegas, New Mexico.

Why? New Mexico offers itinerant filmmakers a 25 percent tax credit that Nevada doesn’t match, say proponents of the tax “incentives” … or loopholes, or giveaways, depending on your outlook.

“They brought it to us first. They wanted us to do it, but we can’t compete with New Mexico,” Chris Ramirez, who runs Silver State Productions in Las Vegas, told the Review-Journal last week. “It happens all the time.”

Forty states offer incentives to movie productions. Nevada offers the absence of any state income tax and the abatement of room taxes after 30 days, but that’s still not enough to be competitive, say those in the industry.

In fact, Nevada offers a bit more. California’s unions and regulatory climate have made it more economically attractive for film crews to hit the road – traveling as far as Canada, in some cases. Right-to-work Nevada imposes less of a straitjacket.

But when multiple states race to give away the store for temporary jobs, the film industry can always bolt for an even sexier package somewhere else. Governors in Michigan and New Mexico appear to be moving to shore up tax revenues by cutting back on some of their own incentives.

Nevada should be cautious about following such trails. Besides, it’s not as though Nevada is being bypassed entirely. In 2011, 479 productions were filmed in Nevada, up from 367 in 2010. Total production revenue for 2011 was $102.5 million, up from $81.1 million in 2010.

Nevada has hired AngelouEconomics of Texas to study incentives and public policies that have expedited the growth of key industries. Film production should be on that list.

In general, though, a crazy quilt of tax breaks targeted at individual industries can be unwise, unfair, overly complex and possibly even unconstitutional. The best approach is not to pick favorites, but to keep Nevada’s taxes and regulations to a minimum, encouraging entrepreneurship, risk-taking and investment in all industries, across the board.