News - March 18, 2025 - by Ray Hagar

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Steve Yeager, the Speaker of the Assembly at the Nevada Legislature, loves the idea of Nevada becoming a haven for the expansion of the Hollywood movie and TV production industry.

"Who would not want to bring Hollywood to Nevada, to Las Vegas, to Reno?" he said on Nevada Newsmakers recently.

"I mean, that would be huge for us," he told host Sam Shad. "And I think it really would help with the diversification of the economy, which we've talked about every single year I've ever been on this show."

That does not mean the Speaker -- leader of the people's house -- is all in on the controversial bill being considered in Carson City to significantly expand Nevada's film-tax credit program.

Assembly Bill 238 would allow for more than $100 million in annual transferable tax credits for productions at a studio to be constructed in Las Vegas’ Summerlin area.

"It's a huge number. A huge ask," Yeager said.

The bill is reportedly backed by Sony Pictures Entertainment, Warner Bros. Discovery and Howard Hughes Holdings. Some A-list movie stars have already come out to praise the proposed legislation, including Mel Gibson and Annette Bening.

Yeager, however, remains skeptical.

"We''ve never been asked for that kind of money in film tax credits," Yeager said. "Its over $100 million at this point of time, with the amendments.

"But $80 million, $100 million (annually), and it's over a term of years 13, 14 or, 15 years. It's a lot of money," Yeager said.

A fiscal analysis report from PFM Consulting that was presented to lawmakers laid out a positive future of proposed project.

When accounting for major economic benefits, like job creation and money spent in the community through those jobs, the gross economic return is estimated to be about $25 for every dollar of the tax credit, proponents told lawmakers.

"I like the idea of it, but there's a couple questions I have," Yeager said. "Number one, can we afford it? The budget we have right now makes me skeptical about that. And then, number two, is it worth it?

"Because when you look at film tax credits around the country, they don't return a lot of money directly for the film tax credit," Yeager said.

"Georgia did a study and it was 20 cents on the dollar that came back to the state. But, you know, the way it's pitched to us, you've got to take into account all these jobs and the diversification of the economy and the fact that we're going to have a new industry here."

Yeager was referring to a 2023 study done by Georgia State University that showed that although the film tax-credit sparked a growth of TV and movie production in Georgia, the expected economic return did not materialize.

Also, the state was projected to hand out $1.35 billion in credits in 2024, some of which could be sold to other entities by the film production companies, according to The Associated Press.

Yeager noted that Georgia lawmakers are continuing the state's film tax credit system, despite the study. In fact, Georgia lawmakers rejected a bill last year that would have limited how much the state can spend on tax incentives for film and TV production.

"Is that worth something?" Yeager said of the Nevada film tax-credit bill. "Of course it is. But in my mind, is it worth the amount of outlay that the state would have to make for that? And I don't know the answer to that yet. I've got to really dig into that analysis. I mean, every economic analysis we get is a rosy economic analysis or they wouldn't give it to us."

Proponents of the film tax-credit bill said there is a big difference between Georgia and Las Vegas when it comes to the potential of movie making.

"When I saw that (Georgia study) come out originally, I said, well, that's kind of the end of the conversation," Yeager said. "But, you know, the argument always is that we (Las Vegas) are a different place. We're a different community. Our proximity to Hollywood and to Los Angeles, I think makes us more attractive than Georgia," Yeager said.

"Now, to their credit, the proponents of the bill have said, 'Yes, this is an economic analysis that happened (for Georgia). It's accurate. But here's why Nevada is different.'"

Lawmakers still need convincing of the difference, Yeager said.

"So that's the hurdle they have to climb right now," Yeager said. "How are we different enough from Georgia, in that it would make sense for us when I don't believe it makes sense for Georgia? Although, they continue to extend their film tax credit there."

Communication with Gov. Lombardo

Yeager said at the time of taping this interview (early last week) that he has yet to sit down, face-to-face with Gov. Joe Lombardo this legislative session.

"I've really only talked to the governor's chief of staff, at this point, a couple of times, sort of waiting for the governor to engage on issues," Yeager said.

The Speaker noted that Lombardo will probably be more engaging with lawmakers when his bills are presented to the Legislature.

"You know, I think part of the problem is his bills are not out yet, his five priority bills," Yeager said. "So I think once those come out, discussions will kind of start in earnest about what's in there because, each of those bills, really, is probably like 30 bills in one with a lot of money attached.

"So there's going to be a lot of work to be done there and I think those conversations will start then," Yeager said.

In 2023, Lombardo, a Republican, vetoed a record number of bills from the Democratically-controlled Legislature  -- 75. Yeager thinks that number will go down this session with better communication between lawmakers and Lombardo.

"I have expressed to his (Lombardo's) chief of staff that we are going through the legislative process," Yeager said. "We are bringing back some bills or concepts that were vetoed last time. We've tried to be mindful of the governor's veto messages in terms of why he vetoed those things. I mean, we don't want things to be vetoed. We want them to be signed.

"So I have asked if there can be better communication coming from the governor's office this year about things we are concerned about, and are there ways that we can amend bills that he can sign them?"

A lot of wasted time could be saved with better communication, Yeager said.

"You know, if it's a 'no' and it's always going to be a 'no' -- no matter what ..." Yeager said. "For instance, gun safety legislation, if the governor is not going to sign that, just tell us that and we'll move on. But I think there are plenty of things in the middle."

Yeager mentioned Lombardo's 75 vetos in 2023, adding, "Last time, 30 of those didn't have to get vetoed. I think better communication would have helped. So I have affirmatively asked to get that input. I haven't received that yet, but they know these bills are moving through the process. So I'm hopeful that we're going to get some guidance because we really do want these bills to be enacted."

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