AB 5

  (Reprinted with amendments adopted on November 16, 2025)
                     SECOND REPRINT  A.B. 5
              ASSEMBLY BILL NO. 5–SELECT COMMITTEE
                     ON JOBS AND ECONOMY
                          PREFILED NOVEMBER 12, 2025
                                 ____________
       Referred to Select Committee on Jobs and Economy
SUMMARY—Enacts the Nevada Studio Infrastructure Jobs and
   Workforce Training Act. (BDR S-13)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
        Effect on the State: Yes.
                                                     ~
 EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to economic development; enacting the Nevada
  Studio Infrastructure Jobs and Workforce Training Act;
  requiring the Office of Economic Development to enter
  into a development agreement to establish certain criteria
  for the development of infrastructure for the production of
  motion pictures and other qualified productions and other
  new capital investment in this State; establishing certain
  penalties if the development does not meet certain
  requirements for new capital investment and expenditures
  for the production of motion pictures and other qualified
  productions; establishing requirements for a production
  company located at such a development to be eligible for
  film infrastructure transferable tax credits for qualified
  productions produced at the development; providing for
  the calculation of the amount of film infrastructure
  transferable tax credits; requiring the creation of a
  production studio entertainment district; revising
  provisions governing noninfrastructure transferable tax
  credits for motion pictures and other qualified productions
  produced in this State; authorizing an additional amount
  of noninfrastructure transferable tax credits; establishing
  the Account for Nevada Film, Media and Related
  Technology Education and Vocational Training and a
  board to approve distributions from the Account;
  providing for the distribution of money from the Account
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             to certain entities and organizations that provide
             education and vocational training to develop a workforce
             for the production of qualified productions in this State;
             and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
1     Existing law establishes a program for the issuance of transferable tax credits
2 by the Office of Economic Development to the production company of a motion
3 picture or other qualified production, based upon qualified direct production
4 expenditures made for the purchase of personal property or services from a Nevada
5 business. (NRS 360.758-360.7598) This bill revises provisions governing these
6 transferable tax credits and enacts the Nevada Studio Infrastructure Jobs and
7 Workforce Training Act to authorize film infrastructure transferable tax credits for
8 qualified productions produced at the site of the Summerlin Production Studios
9 Project.
10     Sections 1-20 of this bill enact the Nevada Studio Infrastructure Jobs and
11 Workforce Training Act, which provides film infrastructure transferable tax credits
12 for production companies located within the Summerlin Production Studios Project,
13 as defined in section 9. Section 10 requires the Office of Economic Development
14 to enter into a development agreement with the lead participant of the Project to
15 establish: (1) certain criteria that the Project is required to satisfy for film
16 infrastructure transferable tax credits to be authorized for qualified productions at
17 the Project; and (2) certain requirements for new capital investment in this State
18 and the generation of direct production expenditures in this State, which the Project
19 must meet, with certain exceptions, to avoid penalties specified in section 10.
20 Section 11: (1) authorizes production companies located at the Project to apply, on
21 or after December 1, 2026, to the Office for film infrastructure transferable tax
22 credits for qualified productions produced, in whole or in part, at the Project; and
23 (2) authorizes such credits to be used against the modified business tax, insurance
24 premium tax or gaming license fee, or any combination of these taxes and fees.
25 Section 12 establishes the qualified direct production expenditures which are the
26 basis for calculating the amount of film infrastructure transferable tax credits,
27 including, without limitation: (1) purchases, rentals or leases of property or services
28 from a Nevada business; (2) wages and fringe benefits paid to employees who are
29 Nevada residents or other personnel for labor or services provided in this State on
30 the qualified production; and (3) amounts paid to service providers for the services
31 of certain persons on the qualified production. Section 13 establishes requirements
32 for the employment of Nevada residents as below-the-line employees of qualified
33 productions. Section 14 provides that the base amount of film infrastructure
34 transferable tax credits is 30 percent of the amount of qualified direct production
35 expenditures calculated under section 12, with no credits issued if the production
36 company does not satisfy certain criteria for work opportunities for members of
37 traditionally underrepresented groups. Section 15: (1) limits the total amount of
38 film infrastructure transferable tax credits issued pursuant to sections 1-20 to
39 $95,000,000 for each fiscal year beginning on or after July 1, 2029; and (2)
40 prohibits the approval of an application for film infrastructure transferable tax
41 credits if the application is submitted in a fiscal year that begins on or after July 1,
42 2044. Section 16 requires a production company to: (1) commence principal
43 photography within a certain period of time after the Office approves an application
44 for a certificate of eligibility for film infrastructure transferable tax credits; (2)
45 complete the qualified production within 18 months after the date of
46 commencement of principal photography, except that the Office may extend this
47 period for not more than 6 months; and (3) submit certain required information
48 within the required period. Section 17 requires a production company to repay film
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49 infrastructure transferable tax credits under certain circumstances. Section 19
50 requires the lead participant in the Project to submit certain reports to the Governor,
51 the Legislature and the Office. Section 20 requires certain reports to be made to the
52 Legislature concerning film infrastructure transferable tax credits.
53      Sections 23-32 of this bill make various changes to the existing law governing
54 the noninfrastructure transferable tax credits for motion picture and other qualified
55 productions. (NRS 360.758-360.7598) Section 24 changes references to “extras” in
56 a qualification production to “background actors.” Section 25: (1) provides that
57 digital media productions are qualified productions for the purposes of eligibility
58 for film infrastructure transferable tax credits and noninfrastructure transferable tax
59 credits; and (2) clarifies that media productions solely produced for social media
60 are not eligible for such transferable tax credits. Section 26 revises the criteria to be
61 eligible for noninfrastructure transferable tax credits to be the same as the criteria
62 for film infrastructure transferable tax credits by: (1) removing the requirement that
63 a certain percentage of direct production expenditures be incurred in this State and,
64 instead, requiring that at least 50 percent of the total principal photography days of
65 the qualified production take place in this State or a certain amount of qualified
66 direct production expenditures be incurred in this State; and (2) requiring a
67 production company to have a workforce plan that establishes certain goals and
68 provide to the Office a final assessment of whether the production company met or
69 made a good faith effort to meet those goals. Section 22 of this bill applies to
70 applicants for noninfrastructure transferable tax credits the same requirements for
71 the employment of Nevada residents as below-the-line personnel that apply to
72 applicants for film infrastructure transferable tax credits. Section 27 revises the
73 expenditures and costs that may serve as a basis for noninfrastructure transferable
74 tax credits. Section 28: (1) increases the base amount of transferable tax credits
75 from 15 percent of the qualified direct production expenditures to 30 percent of the
76 qualified direct production expenditures, for an application submitted in each fiscal
77 year beginning on or after July 1, 2029, and ending before July 1, 2044; and (2)
78 provides that no credits may be issued if the production company does not satisfy
79 certain criteria for work opportunities for members of traditionally
80 underrepresented groups. Section 29 makes certain provisions of existing law
81 relating to the calculation of noninfrastructure transferable tax credits inapplicable
82 for the period beginning on July 1, 2029, and ending on June 30, 2044. Section 30
83 temporarily increases from $10,000,000 to $25,000,000 the total amount of
84 noninfrastructure transferable tax credits for motion picture and other qualified
85 productions that may be issued under the existing program for each fiscal year
86 beginning on or after July 1, 2029, until June 30, 2044. Sections 31 and 32 make
87 conforming changes so that noninfrastructure transferable tax credits are
88 administered and reported in the same manner as film infrastructure transferable tax
89 credits.
90      Section 18 requires the Clark County Board of County Commissioners to
91 create a production studio entertainment district for the purpose of enhancing early
92 childhood education opportunities, including prekindergarten, for children in Clark
93 County. Under section 18, the boundaries of the district are required to be entirely
94 within the unincorporated areas of Clark County and include only parcels of land
95 that are located within the boundaries of the Summerlin Production Studios Project.
96 Section 18 requires certain taxes on transient lodging, certain property taxes and
97 certain sales and use taxes imposed in the district to be pledged and distributed to
98 the Clark County School District and used by the Clark County School District
99 solely for the purposes of prekindergarten programs in the Clark County School
100 District. Finally, section 18 requires the Clark County School District to submit
101 annual reports to the Office concerning the use of money distributed to Clark
102 County School District under section 18.
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103      Sections 33-40 of this bill establish a program to provide grants to certain
104 organizations that provide education and vocational training for workforce
105 development for the production of motion pictures and other qualified productions.
106 Section 38 establishes the Account for Nevada Film, Media and Related
107 Technology Education and Vocational Training for the purpose of allocating
108 money to certain entities and organizations that provide education and vocational
109 training for such workforce development. Sections 11 and 26 require the Office to
110 cause the transfer to the Account an amount of money equal to 1 percentage point
111 of the percent of qualified direct production expenditures used to calculate the
112 amount of transferable tax credits issued to the qualified production, and to reduce
113 the amount of transferable tax credits issued to the production company by that
114 amount of money. Section 39 creates and provides for the composition of the
115 Board for Nevada Film, Media and Related Technology Education and Vocational
116 Training within the Office of Economic Development. Section 40: (1) requires the
117 Board to establish the procedure for a person or entity to apply for a grant of money
118 from the Account, the criteria to be used to determine whether to approve an
119 application for a grant from the Account to an applicant and the requirements for
120 reports by recipients of such grants concerning the use of the grants; and (2)
121 prohibits the making of a grant from the Account unless the Board approves the
122 application for the grant.
    THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
       SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1     Section 1. Sections 1 to 20, inclusive, of this act may be cited
2 as the Nevada Studio Infrastructure Jobs and Workforce Training
3 Act.
4     Sec. 2. 1. The Legislature hereby finds and declares that:
5     (a) The Las Vegas Metropolitan Area is the largest metropolitan
6 area in this State and has a site available to be developed to create
7 large-scale facilities for the location of companies that produce
8 motion pictures, television programs and other qualified productions
9 in this State. The establishment of such a studio campus will create
10 jobs in Nevada’s creative industries and diversify the economy of
11 this State.
12     (b) The Las Vegas Metropolitan Area possesses unique
13 geographic, economic and resource advantages that make it
14 especially suitable for a project of this magnitude. Because of these
15 unique local conditions, it is necessary to enact a law of local and
16 special application to promote and secure the benefits of a large-
17 scale film and media production development in Southern Nevada
18 for the benefit of the entire State.
19     (c) Because of these special characteristics and circumstances in
20 Southern Nevada, a general law cannot be made applicable to
21 achieve the purposes of this Act and a law of local and special
22 application is necessary to promote and secure the advantages of the
23 local and special characteristics and circumstances within the Las
24 Vegas Metropolitan Area.
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1     2. The Legislature further finds and declares that the content
2 production industry has presented an ambitious and visionary plan
3 for all of Southern Nevada, which leverages the region’s unique
4 geographic assets, economic capabilities and infrastructural
5 advantages. The industry’s vision will promote the generation of
6 thousands of high-quality, high-paying jobs, billions of dollars in
7 incremental capital investments and billions more in new economic
8 output and ongoing spending. This plan transcends the development
9 of a mere studio complex, proposing instead a dynamic production
10 campus that is intended to serve as the nucleus for a robust,
11 sustainable industrial cluster. The Legislature recognizes that
12 realizing this vision depends fundamentally upon a collaborative
13 public-private partnership, wherein the State’s commitment,
14 provided through transferable tax credits, creates leverage that
15 significantly multiplies the benefits accruing to this State. In
16 entering this partnership, the Legislature affirms its clear and
17 unwavering expectation that if the industry benefits from the State’s
18 contribution of transferable tax credits, the industry’s promises will
19 be fulfilled, the outcomes articulated by the industry will be met or
20 exceeded, and the anticipated economic, fiscal and social benefits
21 driven by the industry will be fully realized.
22     3. The Legislature further finds and declares that the enactment
23 of this Act will achieve a bona fide public social and economic
24 purpose. The public investment made through the film infrastructure
25 transferable tax credits is intended to yield substantial benefits in
26 employment, workforce development and economic growth, and the
27 overall economic benefits expected to accrue from incremental
28 investment and the ongoing operations of the project will exceed
29 any adverse effect on public revenues from those tax incentives.
30 This Act, therefore, serves the public interest by fostering significant
31 new private investment, creating enduring jobs and educational
32 opportunities, and positioning Nevada as a leader in the content
33 creation industry while ensuring that the long-term gains to the
34 economy more than outweigh the State’s investment in the project.
35     Sec. 3. It is the intent of the Legislature, in enacting this Act,
36 to:
37     1. Promote the diversification of the economy of this State by
38 cultivating a thriving hub for content creation and production in
39 Nevada, which will establish Nevada as a nationally recognized
40 center for film, television and digital media production, thereby
41 broadening Nevada’s economic base beyond its traditional
42 industries and enhancing the State’s prominence in the creative
43 economy.
44     2. Provide an anchor for a new creative sector in Southern
45 Nevada through partnerships with global film and media companies
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1 to develop and operate facilities for the production of film,
2 television and digital media productions and the involvement of
3 studio partners as anchor tenants to bring world-class expertise,
4 innovative technologies and global market access that will
5 accelerate the growth of a robust content creation industry in
6 Southern Nevada.
7     3. Support and promote workforce development in this State by
8 establishing and supporting education and vocational training
9 programs to prepare Nevada’s workforce for high-wage careers in
10 film, television and digital media production, equip Nevada’s
11 residents with in-demand skills and create pathways into the
12 industry, thereby generating thousands of new jobs for Nevadans
13 and building a skilled talent pool that sustains the State’s creative
14 sector for the long term.
15     Sec. 4. As used in sections 1 to 20, inclusive, of this act,
16 unless the context otherwise requires, the words and terms defined
17 in NRS 360.7582 and 360.7586, as amended by sections 24 and 25
18 of this act, have the meanings ascribed to them in those sections,
19 and the words and terms defined in sections 5 to 9, inclusive, of this
20 act have the meanings ascribed to them in those sections.
21     Sec. 5. “Capital investment” means all costs and expenses
22 incurred by the participants in the Project in connection with the
23 acquisition of the land for the Project and the acquisition,
24 construction, installation and equipping of the facilities, buildings,
25 structures and other infrastructure at the Project for the production
26 of qualified productions at the Project.
27     Sec. 6. “Lead participant” means the person designated by the
28 participants in the Project as the lead participant for the Project.
29     Sec. 7. “Nevada Partners Vocational Training Studio” means a
30 facility:
31     1. To be located by December 31, 2029, at a site owned by
32 Nevada Partners, Inc., or its successor organization, or if Nevada
33 Partners, Inc. ceases to exist and has no successor organization, to
34 be located by December 31, 2030, at a site approved by the
35 Southern Nevada Enterprise Community Board created by section 8
36 of the Southern Nevada Enterprise Community Infrastructure
37 Improvement Act; and
38     2. At which vocational training and education is to be provided
39 for the development of a trained workforce for the production in this
40 State of qualified productions that are film and television
41 productions.
42     Sec. 8. “Office” means the Office of Economic Development
43 within the Office of the Governor.
44     Sec. 9. “Summerlin Production Studios Project” or “Project”
45 means a project for the construction of a development consisting of
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1 facilities, buildings, structures and other infrastructure for the
2 production of qualified productions at the site of real property
3 burdened by the following development agreements and owned by
4 the master developer under such development agreements or such
5 master developer’s affiliated entities:
6     1. Development agreement between Clark County and Howard
7 Hughes Properties, Limited Partnership dated February 7, 1996, as
8 amended, and recorded on September 4, 1996, in Book 960904 as
9 Instrument No. 01725 and re-recorded on September 10, 1996, in
10 Book 960910 as Instrument No. 01379 in the official records of the
11 Clark County, Nevada Recorder’s Office.
12     2. Development agreement between the City of Las Vegas and
13 Howard Hughes Properties, Limited Partnership, recorded on
14 November 21, 1997, in Book 971121 as Instrument No. 00839, as
15 amended, in the official records of the Clark County, Nevada
16 Recorder’s Office.
17     Sec. 10. 1. Not later than 120 days after the effective date of
18 this act, the Office shall enter into a development agreement with
19 the lead participant of the Summerlin Production Studios Project,
20 unless the Office agrees to extend this period by not more than 60
21 days. The development agreement entered into pursuant to this
22 section:
23     (a) Must require the Project to:
24(1) Except as otherwise provided in subsections 2 and 3, not
25 later than:
26(I) December 31, 2028, make a new capital investment in
27 this State, excluding any hotel and any business required to hold a
28 license issued pursuant to chapter 463 of NRS, of at least
29 $400,000,000.
30(II) June 30, 2030, make an aggregate new capital
31 investment in this State, of at least $900,000,000. For the purposes
32 of determining the amount of new capital investment pursuant to
33 this sub-subparagraph, any new capital investment by a third party
34 who purchases property or enters into a ground lease for property
35 within the site of the Project must be credited toward meeting the
36 requirement of this sub-subparagraph. The Office shall credit toward
37 meeting the requirement of this sub-subparagraph 50 percent of the
38 new capital investment made at the Downtown Summerlin site
39 during the period beginning on the date of the execution of the
40 development agreement and ending on June 30, 2030, if the Board
41 of Economic Development determines that the new capital
42 investment is consistent with the State Plan for Economic
43 Development developed by the Executive Director of the Office of
44 Economic Development pursuant to subsection 2 of NRS 231.053
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1 and the intent of the Legislature as expressed in sections 2 and 3 of
2 this act.
3(III) June 30, 2033, make an aggregate new capital
4 investment in this State of at least $1,400,000,000. For the purposes
5 of determining the amount of new capital investment pursuant to
6 this sub-subparagraph, any new capital investment by a third party
7 who purchases property or enters into a ground lease for property
8 within the site of the Project must be credited toward meeting the
9 requirement of this sub-subparagraph. The Office shall credit toward
10 meeting the requirement of this sub-subparagraph 50 percent of the
11 new capital investment made at the Downtown Summerlin site
12 during the period beginning on the date of the execution of the
13 development agreement and ending on June 30, 2033, if the Board
14 of Economic Development determines that the new capital
15 investment is consistent with the State Plan for Economic
16 Development developed by the Executive Director of the Office of
17 Economic Development pursuant to subsection 2 of NRS 231.053
18 and the intent of the Legislature as expressed in sections 2 and 3 of
19 this act.
20(IV) June 30, 2039, make an aggregate new capital
21 investment in this State of at least $1,800,000,000. For the purposes
22 of determining the amount of new capital investment pursuant to
23 this sub-subparagraph, any new capital investment by a third party
24 who purchases property or enters into a ground lease for property
25 within the site of the Project must be credited toward meeting the
26 requirement of this sub-subparagraph. The Office shall credit toward
27 meeting the requirement of this sub-subparagraph 50 percent of the
28 new capital investment made at the Downtown Summerlin site
29 during the period beginning on the date of the execution of the
30 development agreement and ending on June 30, 2039, if the Board
31 of Economic Development determines that the new capital
32 investment is consistent with the State Plan for Economic
33 Development developed by the Executive Director of the Office of
34 Economic Development pursuant to subsection 2 of NRS 231.053
35 and the finding and intent of the Legislature as expressed in sections
36 2 and 3 of this act.
37(2) Not later than December 31, 2028, contribute at least
38 $8,000,000 to Nevada Partners, Inc. to support the construction and
39 operation of the Nevada Partners Vocational Training Studio and to
40 the maximum extent practicable, collaborate with Nevada Partners,
41 Inc. to ensure that not later than December 31, 2030, construction of
42 the Nevada Partners Vocational Training Studio has been completed
43 and the Nevada Partners Vocational Training Studio is operational.
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1(3) If the Nevada Partners Vocational Training Studio is not
2 completed and operational before January 1, 2031, ensure that an
3 equivalent facility is constructed and operational before that date.
4(4) Except as otherwise provided in subparagraph (5) and
5 subsection 6, guarantee that for the period beginning on:
6(I) July 1, 2029, and ending on June 30, 2035, the Project
7 will generate, for each period consisting of 2 fiscal years during that
8 time, not less than $600,000,000 of direct production expenditures.
9(II) July 1, 2035, and ending on June 30, 2044, the Project
10 will generate, for each period consisting of 3 fiscal years during that
11 time, not less than $900,000,000 of direct production expenditures.
12(5) Except as otherwise provided in this subparagraph,
13 require that if, during any period described in subparagraph (4), the
14 amount of direct production expenditures exceeds the amount
15 required by subparagraph (4) for that period, the excess amount
16 must be carried forward and used to offset any shortage in satisfying
17 any requirement set forth in subparagraph (4) in any subsequent
18 period. The total amount of excess direct production expenditures
19 for a period described in subparagraph (4) that may be used to offset
20 a shortfall in the amount of direct production expenditures required
21 for any subsequent period described in subparagraph (4) cannot
22 exceed $200,000,000.
23(6) Not later than 5 years after the Office and the lead
24 participant execute the development agreement, make a contribution
25 of at least $6,000,000 for the construction, in conjunction with
26 Chicanos Por La Causa, of a center to be located on the east side of
27 the City of Las Vegas, as determined by agreement of the Office and
28 the lead participant, to support education and workforce training
29 related to the production of qualified productions that are film or
30 television productions and for child care for participants in such
31 education and workforce training programs.
32(7) If the center described in subparagraph (6) is not
33 completed and operational before January 1, 2031, ensure that an
34 equivalent facility is constructed and operational before that date.
35(8) Prohibit any establishment operating any gaming or
36 gambling, gaming device, sports pool, race book or any game or
37 gambling game as those terms are defined and licensed pursuant to
38 chapter 463 of NRS for any portion of the Project during the term of
39 the development agreement, except for any facilities, buildings or
40 structures that house a business that:
41(I) Manufactures, distributes or sells gaming devices,
42 games or associated equipment as defined or described pursuant to
43 chapter 463 of NRS or the regulations adopted by the Nevada
44 Gaming Commission; or
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1(II) Provides cloud computing services, information
2 technology or acts as a service provider or hosting center as defined
3 or described in chapter 463 of NRS or the regulations adopted by
4 the Nevada Gaming Commission.
5(9) Provide written notice to the Office within 30 days after
6 the applicable deadline for completing a requirement set forth in
7 subparagraphs (1) to (7), inclusive, which must state whether the
8 requirement has been met. Upon receipt of the written notice,
9 the Office shall make a final determination, in writing, of whether
10 the requirement has been met and provide that determination to the
11 lead participant of the Project. If the Office determines that the
12 requirement has been met, the Office shall establish the date on
13 which the requirement was met.
14     (b) Must establish the minimum amount of square feet of
15 building space at the Project to be used for the various components
16 of the production of qualified productions.
17     (c) Must establish the minimum number of acres of real property
18 that will be a part of the Project.
19     (d) May include such other provisions, not inconsistent with
20 law, concerning the development of the Project and the issuance of
21 film infrastructure transferable tax credits pursuant to sections 4 to
22 20, inclusive, of this act, as agreed to by the Office and the lead
23 participant.
24     2. As the Executive Director of the Office deems necessary or
25 advisable, the Executive Director may modify any requirement for
26 new capital investment set forth in subparagraph (1) of paragraph
27 (a) of subsection 1 by extending the date by which any new capital
28 investment set forth in those provisions must be made.
29     3. If the Office determines that the Project has not met a
30 requirement for capital investment included in the development
31 agreement pursuant to subparagraph (1) of paragraph (a) of
32 subsection 1, the Office must document its determination in writing,
33 notify the lead participant, in writing, of its determination and
34 impose a penalty on the Project in an amount not to exceed the
35 amount of the deficiency. The Project may cure the deficiency by
36 making the required capital investment in the element of the Project
37 for which the requirement for capital investment was not met not
38 later than 2 years after the end of the period for which the
39 requirement for capital investment was not met, in an amount
40 necessary to satisfy the requirement for capital investment in an
41 element of the Project that was not met. If the deficiency is:
42     (a) Cured within the cure period, 100 percent of the amount of
43 the penalty must be discharged.
44     (b) Not cured within that cure period, the Office must record a
45 lien on any land within the Project that is undeveloped or has not
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1 been developed in accordance with the findings and intent of the
2 Legislature as expressed in sections 2 and 3 of this act, to secure
3 payment of such penalty, subject to the limitations set forth in
4 subsection 4. Any penalty, and the lien securing the payment of such
5 penalty, must be discharged as follows:
6(1) If the requirement for capital investment which was not
7 met is satisfied not later than 1 year after the expiration of the cure
8 period, 90 percent of the amount of the penalty, and the lien
9 securing the payment of the penalty, must be discharged.
10(2) If the requirement for capital investment which was not
11 met is satisfied more than 1 year, but not later than 2 years, after the
12 expiration of the cure period, 70 percent of the amount of the
13 penalty, and the lien securing the payment of the penalty, must be
14 discharged.
15(3) If the requirement for capital investment which was not
16 met is satisfied more than 2 years, but not later than 3 years, after
17 the expiration of the cure period, 50 percent of the amount of the
18 penalty, and the lien securing the payment of the penalty, must be
19 discharged.
20(4) If the requirement for capital investment which was not
21 met is satisfied more than 3 years, but not later than 4 years, after
22 the expiration of the cure period, 30 percent of the amount of the
23 penalty, and the lien securing the payment of the penalty, must be
24 discharged.
25(5) If the requirement for capital investment which was not
26 met is satisfied more than 4 years, but not later than 5 years, after
27 the expiration of the cure period, 10 percent of the amount of the
28 penalty, and the lien securing the payment of the penalty, must be
29 discharged.
30    4. Only one lien may by recorded pursuant to subsection 3 and
31 such a lien:
32    (a) Must not, at any time, exceed the lesser of the amount of the
33 deficiency or 100 percent of the appraised value of the remaining
34 land within the Project that is undeveloped or has not been
35 developed in accordance with the findings and intent of the
36 Legislature as expressed in sections 2 and 3 of this act.
37    (b) May not be recorded on any completed portion of the
38 Project.
39    (c) May be modified, replaced or reissued to secure payment of
40 the most current amount of any penalty imposed pursuant to
41 subsection 3 but any such lien is subject to the limitations of this
42 subsection.
43    5. If the Office determines that the amount of direct production
44 expenditures is less than $150,000,000 in any fiscal year
45 commencing on or after July 1, 2029, and before July 1, 2044, the
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1 Office must notify the Project, in writing, of its determination and
2 impose a penalty on the Project in an amount equal to the lesser of
3 $10,000,000 or the amount determined by:
4     (a) Calculating 50 percent of the sum of the film infrastructure
5 transferable tax credits authorized for approval pursuant to section
6 15 of this act for that fiscal year and the immediately preceding
7 fiscal year;
8     (b) Calculating a percentage by dividing the difference between
9 the $150,000,000 and the actual amount, as determined by the
10 Office, of direct production expenditures, by $150,000,000; and
11     (c) Multiplying the percentage calculated pursuant to paragraph
12 (b) by the amount calculated pursuant to paragraph (a).
13  Any penalty paid pursuant to this subsection must be applied to
14 reduce the amount of any penalty imposed pursuant to subsection 6.
15     6. If the Office determines that the Project has not met a
16 requirement for direct production expenditures included in the
17 development agreement pursuant to subparagraph (4) of paragraph
18 (a) of subsection 1, the Project must pay to the Office a penalty in an
19 amount determined as follows:
20     (a) If the actual amount of direct production expenditures is
21 more than 2 percent and not more than 5 percent less than the
22 applicable requirement for direct production expenditures included
23 in the development agreement pursuant to subparagraph (4) of
24 paragraph (a) of subsection 1, a penalty in the amount of
25 $2,000,000.
26     (b) If the actual amount of direct production expenditures is
27 more than 5 percent and not more than 10 percent less than the
28 applicable requirement for direct production expenditures included
29 in the development agreement pursuant to subparagraph (4) of
30 paragraph (a) of subsection 1, a penalty in the amount of
31 $5,000,000.
32     (c) If the actual amount of direct production expenditures is
33 more than 10 percent and not more than 20 percent less than the
34 applicable requirement for direct production expenditures included
35 in the development agreement pursuant to subparagraph (4) of
36 paragraph (a) of subsection 1, a penalty in the amount of
37 $10,000,000.
38     (d) If the actual amount of direct production expenditures is
39 more than 20 percent and not more than 30 percent less than the
40 applicable requirement for direct production expenditures included
41 in the development agreement pursuant to subparagraph (4) of
42 paragraph (a) of subsection 1, a penalty in the amount of
43 $20,000,000.
44     (e) If the actual amount of direct production expenditures is
45 more than 30 percent and not more than 40 percent less than the
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1 applicable requirement for direct production expenditures included
2 in the development agreement pursuant to subparagraph (4) of
3 paragraph (a) of subsection 1, a penalty in the amount of
4 $30,000,000.
5     (f) If the actual amount of direct production expenditures is
6 more than 40 percent and not more than 50 percent less than the
7 applicable requirement for direct production expenditures included
8 in the development agreement pursuant to subparagraph (4) of
9 paragraph (a) of subsection 1, a penalty in the amount of
10 $40,000,000.
11     (g) If the actual amount of direct production expenditures is
12 more than 50 percent less than the applicable requirement for direct
13 production expenditures included in the development agreement
14 pursuant to subparagraph (4) of paragraph (a) of subsection 1, a
15 penalty in the amount of $50,000,000.
16     7. The Office may reduce, or waive, any penalty imposed
17 pursuant to subsections 3 to 6, inclusive, if, upon written request of
18 the lead participant, the Office determines that the failure to meet a
19 requirement for which a penalty may be imposed was caused by
20 extraordinary circumstances beyond the control of the Project and
21 reasonable, documented and good-faith efforts were made to satisfy
22 the requirement. For the purposes of this subsection, “extraordinary
23 circumstances”:
24     (a) Means natural disasters, labor strikes, significant disruptions
25 in material supply chains, substantial economic or geopolitical
26 shocks, government-mandated closures, delays in obtaining any
27 approval of a governmental entity needed for the Project that are not
28 caused by the Project or other events in the nature of force majeure
29 that materially impair the ability to carry out development and
30 construction activities.
31     (b) Does not include ordinary market fluctuations, internal
32 project scheduling decisions or changes in business strategy.
33     8. Before taking any action or declining any request for an
34 action authorized by subsection 7, the Executive Director of the
35 Office shall:
36     (a) Consider any documentation submitted by the production
37 company related to the action under consideration; and
38     (b) Make the following determinations in writing:
39(1) That good cause exists to take such action; and
40(2) That the action is reasonable based on the circumstances
41 of the underlying incident on which the reduction or withholding of
42 film infrastructure transferable tax credits authorized pursuant to
43 subsection 4 is based.
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1     9. Any penalty paid to the Office pursuant to subsections 3 to
2 6, inclusive, must be deposited with the State Treasurer for credit to
3 the State General Fund.
4     10. The Office shall not approve any abatement, partial
5 abatement or exemption from taxes, or any other incentive for
6 economic development, other than film infrastructure transferable
7 tax credits pursuant to sections 4 to 20, inclusive, of this act or
8 noninfrastructure transferable tax credits pursuant to NRS 360.758
9 to 360.7598, inclusive, for the Summerlin Production Studios
10 Project if the Project has entered into a development agreement with
11 the Office pursuant to this section.
12     11. As used in this section:
13     (a) “Direct production expenditures” means expenditures in this
14 State:
15(1) By a production company that is affiliated with the lead
16 participant and is producing, in whole or in part, a qualified
17 production at the Project;
18(2) That are direct expenditures on a qualified production
19 that is produced, in whole or in part, at the Project; and
20(3) That meet the criteria to be a qualified direct production
21 expenditure pursuant to subsection 1 of section 12 of this act,
22 regardless of whether the production company applies for or
23 receives film transferable tax credits for the qualified production.
24     (b) “Hotel” means a building occupied or intended to be
25 occupied for compensation, as the temporary residence for transient
26 guests, primarily persons who have residence elsewhere. A hotel has
27 an interior hall and lobby with access to each room from the interior
28 hall or lobby.
29     Sec. 11. 1. A production company that is located at the
30 Summerlin Production Studios Project and that produces, in whole
31 or in part, a qualified production at the Project may, on or after
32 December 1, 2026, apply to the Office for a certificate of eligibility
33 for film infrastructure transferable tax credits for any qualified direct
34 production expenditures. The film infrastructure transferable tax
35 credits may be applied to:
36     (a) Any tax imposed by chapter 363A or 363B of NRS;
37     (b) The gaming license fee imposed by the provisions of
38 NRS 463.370;
39     (c) Any tax imposed by chapter 680B of NRS; or
40     (d) Any combination of the fees and taxes described in
41 paragraphs (a), (b) and (c).
42     2. Except as otherwise provided in section 15 of this act, the
43 Office shall approve an application for a certificate of eligibility for
44 film infrastructure transferable tax credits if the Office finds that the
45 production company is producing the qualified production, in whole
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1 or in part, at the Summerlin Production Studios Project and the
2 production company qualifies for the film infrastructure transferable
3 tax credits pursuant to subsection 3. If the Office approves the
4 application, the Office shall:
5     (a) Calculate the estimated amount of film infrastructure
6 transferable tax credits that may be issued for the qualified
7 production pursuant to sections 12 to 15, inclusive, of this act; and
8     (b) Immediately forward a copy of the certificate of eligibility
9 which identifies the estimated amount of tax credits to:
10(1) The applicant;
11(2) The lead participant;
12(3) The Department of Taxation; and
13(4) The Nevada Gaming Control Board.
14     3. To be eligible for film infrastructure transferable tax credits
15 pursuant to this section, the production company must:
16     (a) Before the beginning of principal photography, submit to the
17 Office an application for a certificate of eligibility that meets the
18 requirements of subsection 4;
19     (b) Submit to the Office with the application for a certificate of
20 eligibility:
21(1) Written documentation from the lead participant that
22 affirms that the production company is located at the Summerlin
23 Production Studios Project and is producing, in whole or in part, a
24 qualified production at the Project;
25(2) Proof that 70 percent or more of the funding for the
26 qualified production has been obtained; and
27(3) Proof that:
28(I) At least 50 percent of the total principal photography
29 days of the qualified production will take place in this State; or
30(II) The qualified production will incur qualified direct
31 production expenditures in this State of at least $5,000,000;
32     (c) Satisfy the applicable requirement for the employment of
33 Nevada residents as below-the-line personnel of the qualified
34 production, as set forth in section 13 of this act;
35     (d) Provide to the Office:
36(1) With the application for a certificate of eligibility, proof
37 that the applicant has in place a workforce plan for the qualified
38 production that outlines specific goals for:
39(I) Hiring a workforce that reflects the diversity of this
40 State, with not less than 30 percent of the persons hired for qualified
41 productions being members of a traditionally underrepresented
42 group;
43(II) Adopting nondiscriminatory policies and practices to
44 ensure that the qualified production does not discriminate in
45 employment, contracting or any other term or condition of
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1 participation in the qualified production, against any protected class
2 of individuals pursuant to state or federal law;
3(III) Using vendors that are minority-owned business
4 enterprises or woman-owned business enterprises; and
5(IV) Achieving the requirements set forth in subsection 2
6 of section 13 of this act; and
7(2) Not later than 365 days after the completion of principal
8 photography of the qualified production, unless the Office agrees to
9 extend this period by not more than 180 days, a final assessment of
10 the workforce plan that includes documentation on whether the
11 production met or made good faith efforts to achieve the goals set
12 forth in the workforce plan;
13     (e) Not later than 365 days after the completion of principal
14 photography of the qualified production or, if any direct production
15 expenditures for postproduction will be incurred in this State, not
16 later than 365 days after the completion of postproduction, unless
17 the Office agrees to extend this period by not more than 180 days,
18 provide the Office with an audit of the qualified production that
19 includes:
20(1) An itemized report of qualified direct production
21 expenditures which:
22(I) Shows that the qualified production incurred qualified
23 direct production expenditures of $500,000 or more;
24(II) If the production company complied with the
25 requirement of subparagraph (3) of paragraph (b) by providing to
26 the Office with the application for a certificate of eligibility proof
27 that the qualified production would incur qualified direct production
28 expenditures in this State of at least $5,000,000, shows that the
29 qualified production incurred qualified direct production
30 expenditures in this State of at least $5,000,000; and
31(III) Is certified by an independent certified public
32 accountant in this State who is approved by the Office;
33(2) A list of each contractor, vendor, personal service
34 corporation or loan-out company or other business engaged by the
35 production company to provide goods or perform services in an
36 aggregate amount of at least $10,000 or more in this State in
37 connection with the qualified production and the amount paid to
38 each contractor, vendor, personal service corporation or loan-out
39 company or other business for such goods or services; and
40(3) Proof that the production company secured all licenses
41 and registrations required to do business in each location in this
42 State at which the qualified production was produced;
43     (f) Pay the cost of the audit required by paragraph (e);
44     (g) Enter into a written agreement with the Office that requires
45 the production company to include:
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                                 – 17 –
1(1) In the end screen credits of the qualified production, a
2 logo of this State provided by the Office which indicates that the
3 qualified production was filmed or otherwise produced in Nevada;
4 or
5(2) If the qualified production does not have end screen
6 credits, another acknowledgment in the final version of the qualified
7 production that indicates that the qualified production was filmed or
8 otherwise produced in Nevada or any alternative marketing
9 promotion acceptable to the Office; and
10     (h) Enter into a written agreement with the Office that requires
11 the production company to transmit to each contractor, vendor,
12 personal service corporation or loan-out company or other business
13 engaged by the production company to provide goods or perform
14 services in an aggregate amount of at least $10,000 or more in this
15 State in connection with a qualified production, not later than 30
16 calendar days after the production company pays the contractor,
17 vendor, personal service corporation or loan-out company or other
18 business, a notification that includes:
19(1) A statement that Nevada imposes:
20(I) A tax on wages paid by certain employers pursuant to
21 chapters 363A and 363B of NRS; and
22(II) A commerce tax on certain business entities pursuant
23 to chapter 363C of NRS; and
24(2) Instructions for obtaining additional information from the
25 Department of Taxation regarding the collection and remittance of
26 taxes pursuant to chapters 363A, 363B and 363C of NRS.
27     4. An application for a certificate of eligibility submitted
28 pursuant to subsection 3 must contain:
29     (a) A script, storyboard or synopsis of the qualified production;
30     (b) The names of the production company, producer, director
31 and proposed cast;
32     (c) An estimated timeline to complete the qualified production;
33     (d) An estimate of the percentage of principal photography days
34 of the qualified production that will take place in this State and
35 outside this State;
36     (e) An insurance certificate, binder or quote for general liability
37 insurance of $1,000,000 or more;
38     (f) The business address of the production company;
39     (g) The written documentation from the lead participant that is
40 required by subparagraph (1) of paragraph (b) of subsection 3;
41     (h) The workforce plan of the production company required by
42 subparagraph (1) of paragraph (c) of subsection 3; and
43     (i) Proof that the qualified production meets any applicable
44 requirements relating to workers’ compensation insurance.
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1     5. Within 45 business days after receipt of a final assessment of
2 the workforce plan provided by a production company pursuant to
3 subparagraph (2) of paragraph (d) of subsection 3, an audit provided
4 by a production company pursuant to paragraph (e) of subsection 3
5 and any other accountings or other information required by the
6 Office, the Office shall determine whether to certify the audit and
7 make a final determination of whether a certificate of film
8 infrastructure transferable tax credits will be issued. If the Office
9 certifies the audit, determines that all other requirements for the film
10 infrastructure transferable tax credits have been met and determines
11 that a certificate of film infrastructure transferable tax credits will be
12 issued, the Office shall notify the production company and the lead
13 participant that the film infrastructure transferable tax credits will be
14 issued.
15     6. Within 90 days after the receipt of the notice, the production
16 company shall make an irrevocable declaration of the amount of
17 film infrastructure transferable tax credits that will be applied to
18 each fee or tax set forth in subsection 1, thereby accounting for all
19 of the credits that will be issued in relation to the qualified
20 production.
21     7. Upon receipt of the declaration required by subsection 6, the
22 Office shall:
23     (a) Determine an amount of money equal to 1 percentage point
24 of the percentage of qualified direct production expenditures used to
25 calculate the amount of film infrastructure transferable tax credits
26 that will be issued to the production company and cause that amount
27 of money to be transferred for credit to the Account for Nevada
28 Film, Media and Related Technology Education and Vocational
29 Training created by section 38 of this act; and
30     (b) Issue to the production company a certificate of film
31 infrastructure transferable tax credits in the amount approved by the
32 Office for the fees or taxes included in the declaration of the
33 production company, minus the amount of money transferred
34 pursuant to paragraph (a). The film infrastructure transferable tax
35 credits issued under the certificate may not be used before July 1,
36 2029. The production company shall notify the Office upon
37 transferring any of the film infrastructure transferable tax credits.
38 The Office shall notify the Department of Taxation and the Nevada
39 Gaming Control Board of all film infrastructure transferable tax
40 credits issued, segregated by each fee or tax set forth in subsection
41 1, and the amount of any film infrastructure transferable tax credits
42 transferred.
43     8. An applicant for film infrastructure transferable tax credits
44 pursuant to this section shall, upon the request of the Executive
45 Director of the Office, furnish the Executive Director with copies of
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                                  – 19 –
1 all records necessary to verify that the applicant meets the
2 requirements of subsection 3.
3     9. The Office:
4     (a) Shall adopt regulations prescribing:
5(1) Any additional qualified expenditures or production costs
6 that may serve as the basis for film infrastructure transferable tax
7 credits pursuant to section 12 of this act;
8(2) The application review process;
9(3) That a production for which records are required by 18
10 U.S.C. § 2257 to be maintained with respect to any performer in
11 such production is not eligible for film infrastructure transferable tax
12 credits; and
13(4) Any necessary provisions to ensure compliance with the
14 requirements of paragraph (d) of subsection 3 relating to workforce
15 plans; and
16     (b) May adopt any other regulations that are necessary to ensure
17 that the provisions of sections 2 to 20, inclusive, of this act are
18 carried out in a manner that is reasonable and customary in the
19 industry for the production of qualified productions.
20     10. The Nevada Tax Commission and the Nevada Gaming
21 Commission:
22     (a) Shall adopt regulations prescribing the manner in which film
23 infrastructure transferable tax credits will be administered.
24     (b) May adopt any other regulations that are necessary for the
25 Department of Taxation and the Nevada Gaming Control Board, as
26 applicable, to carry out the functions performed by each entity
27 pursuant to the provisions of sections 2 to 20, inclusive, of this act.
28     11. As used in this section,:
29     (a) “Traditionally underrepresented group” means:
30(1) Women;
31(2) A racial or ethnic minority group;
32(3) A group of persons who identify as LGBTQ, which
33 means lesbian, gay, bisexual, transgender, queer, intersex or any
34 other nonheterosexual or noncisgender orientation or gender identity
35 or expression;
36(4) A group of persons with disabilities, as defined in 6
37 NRS 426.068;
38(5) Veterans;
39(6) Persons who are currently serving on active duty in the
40 Armed Forces of the United States; or
41(7) Persons who were previously incarcerated in a jail or
42 prison.
43     (b) “Veteran” means a person who has served in the Armed
44 Forces of the United States, a reserve component thereof or the
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1 National Guard and was separated from such service under
2 conditions other than dishonorable.
3     Sec. 12. 1. Except as otherwise provided in this subsection
4 and subsection 3, qualified direct production expenditures that may
5 serve as a basis for film infrastructure transferable tax credits issued
6 pursuant to section 11 of this act must:
7     (a) Be expenditures made during the period in which a qualified
8 production is produced;
9     (b) Be customary and reasonable;
10     (c) Relate to a category of qualified expenditures and costs listed
11 in subsection 2; and
12     (d) Be:
13(1) Purchases, rentals or leases of tangible personal property
14 or services from a Nevada business.
15(2) The payroll, including wages, salaries and fringe benefits,
16 for Nevada residents or other personnel for labor or services
17 provided in this State. The payroll, including wages, salaries and
18 fringe benefits, for Nevada residents or other personnel for labor or
19 services provided outside this State must not be a qualified direct
20 production expenditure.
21(3) Compensation, including wages, salaries, fringe benefits
22 and other payments, paid to a bona fide third-party service provider,
23 or to another person receiving the compensation on behalf of the
24 bona fide third-party service provider, for labor or services provided
25 in Nevada. Compensation, including wages, salaries, fringe benefits
26 and other payments, paid to a bona fide third-party service provider,
27 or to another person receiving the compensation on behalf of the
28 bona fide third-party service provider, for labor or services provided
29 outside Nevada must not be a qualified direct production
30 expenditure.
31     2. Expenditures or costs that may serve as a basis for
32 calculating film infrastructure transferable tax credits must relate to:
33     (a) Set construction and operation;
34     (b) Wardrobe and makeup;
35     (c) Photography, sound and lighting;
36     (d) Filming, film processing and film editing;
37     (e) The rental or leasing of facilities, equipment and vehicles;
38     (f) Food and lodging;
39     (g) Editing, sound mixing, special effects, visual effects and
40 other postproduction services;
41     (h) Payment for goods or services provided by a Nevada
42 business;
43     (i) The design, construction, improvement or repair of property,
44 infrastructure, equipment or a production or postproduction facility;
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1     (j) State and local government taxes to the extent not included as
2 part of another cost reported pursuant to this section; or
3     (k) Any other transaction, service or activity authorized in
4 regulations adopted by the Office pursuant to section 11 of this act.
5     3. Expenditures and costs:
6     (a) Related to:
7(1) The acquisition, transfer or use of film infrastructure
8 transferable tax credits;
9(2) Marketing and distribution;
10(3) Financing, depreciation and amortization;
11(4) The payment of any profits as a result of the qualified
12 production;
13(5) The payment of the cost of the audit required by section
14 11 of this act; or
15(6) The payment for any goods or services that are not
16 directly attributable to the qualified production;
17     (b) For which reimbursement is received, or for which
18 reimbursement is reasonably expected to be received;
19     (c) Which are paid to a joint venturer or a parent, subsidiary or
20 other affiliate of the production company, unless the amount paid
21 represents the fair market value, which may be represented by a rate
22 sheet, of the purchase, rental or lease of the property or services for
23 which payment is made;
24     (d) Which have been previously claimed as a basis for film
25 infrastructure transferable tax credits issued pursuant to section 11
26 of this act or noninfrastructure transferable tax credits issued
27 pursuant to NRS 360.759,
28  are not qualified direct production expenditures and are not
29 eligible to serve as a basis for film infrastructure transferable tax
30 credits issued pursuant to section 11 of this act.
31     4. If any tangible personal property is acquired by a Nevada
32 business from a vendor outside this State for immediate resale,
33 rental or lease to a production company that produces a qualified
34 production, expenditures incurred by the production company for
35 the purchase, rental or lease of the property are qualified direct
36 production expenditures only if:
37     (a) The Nevada business regularly deals in property of that kind;
38     (b) The expenditures are otherwise qualified direct production
39 expenditures under the provisions of this section; and
40     (c) Not more than 50 percent of the expenditures incurred by the
41 production company to purchase, rent or lease tangible personal
42 property for the qualified production are expenditures incurred for
43 the purchase, rental or lease of tangible personal property in the
44 manner described in this subsection. For the purposes of the
45 calculation required by this paragraph, the cost of any property that
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                                 – 22 –
1 remains an asset of the Nevada business after production of the
2 qualified production has concluded must not be included in the
3 calculation as property purchased, rented or leased in the manner
4 described in this subsection.
5     5. If any tangible personal property is acquired by the
6 production company as an asset, the calculation of the costs of the
7 tangible personal property that constitute a qualified direct
8 production expenditure must be performed in the manner prescribed
9 by the Office by regulation.
10     6. As used in this section:
11     (a) “Bona fide third-party service provider” means a qualified
12 entity, a qualified individual or any other person determined by the
13 Office to be providing necessary and appropriate labor or services
14 directly related to the production.
15     (b) “Fringe benefits” means employee expenses paid by an
16 employer for the use of the employee’s services, including, without
17 limitation, payments made to a governmental entity, union dues,
18 health insurance premiums, payments to a pension plan and
19 payments for workers’ compensation insurance.
20     (c) “Qualified entity” means an entity that is:
21(1) A personal service corporation, as defined in 26 U.S.C. §
22 269A(b)(1), a payroll services corporation or any entity receiving
23 payments for services performed in this State by a qualified
24 individual; and
25(2) Registered to conduct business pursuant to the laws of
26 this State.
27     (d) “Qualified individual” means any natural person who
28 performs services during the production period in an activity related
29 to the production of a qualified production. The term does not
30 include:
31(1) Any natural person related to the production company or
32 an employee as described in subparagraph (A), (B) or (C) of 26
33 U.S.C. § 51(i)(1).
34(2) Any 5-percent owner, as defined in 26 U.S.C. §
35 416(i)(1)(B), of the production company.
36     Sec. 13. 1. Except as otherwise provided in subsections 3, 4
37 and 5, the Office shall not issue film infrastructure transferable tax
38 credits to a production company pursuant to section 11 of this
39 act unless, in addition to meeting any other requirements for
40 the issuance of film infrastructure transferable tax credits, the
41 production company satisfies the applicable requirement for the
42 employment of Nevada residents as below-the-line personnel of
43 the qualified production as follows:
44     (a) For a qualified production that submits an application for a
45 certificate of eligibility for film infrastructure transferable tax
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                                  – 23 –
1 credits pursuant to section 11 of this act on or after July 1, 2026, and
2 before July 1, 2027, at least 10 percent of the below-the-line
3 personnel of the qualified production are Nevada residents.
4    (b) For a qualified production that submits an application for a
5 certificate of eligibility for film infrastructure transferable tax
6 credits pursuant to section 11 of this act on or after July 1, 2027, and
7 before July 1, 2028, at least 15 percent of the below-the-line
8 personnel of the qualified production are Nevada residents.
9    (c) For a qualified production that submits an application for a
10 certificate of eligibility for film infrastructure transferable tax
11 credits pursuant to section 11 of this act on or after July 1, 2028, and
12 before July 1, 2029, at least 20 percent of the below-the-line
13 personnel of the qualified production are Nevada residents.
14    (d) For a qualified production that submits an application for a
15 certificate of eligibility for film infrastructure transferable tax
16 credits pursuant to section 11 of this act on or after July 1, 2029, and
17 before July 1, 2030, at least 25 percent of the below-the-line
18 personnel of the qualified production are Nevada residents.
19    (e) For a qualified production that submits an application for a
20 certificate of eligibility for film infrastructure transferable tax
21 credits pursuant to section 11 of this act on or after July 1, 2030, and
22 before July 1, 2031, at least 30 percent of the below-the-line
23 personnel of the qualified production are Nevada residents.
24    (f) For a qualified production that submits an application for a
25 certificate of eligibility for film infrastructure transferable tax
26 credits pursuant to section 11 of this act on or after July 1, 2031, and
27 before July 1, 2032, at least 40 percent of the below-the-line
28 personnel of the qualified production are Nevada residents.
29    (g) For a qualified production that submits an application for a
30 certificate of eligibility for film infrastructure transferable tax
31 credits pursuant to section 11 of this act on or after July 1, 2032, and
32 before July 1, 2038, at least 50 percent of the below-the-line
33 personnel of the qualified production are Nevada residents.
34    (h) For a qualified production that submits an application for a
35 certificate of eligibility for film infrastructure transferable tax
36 credits pursuant to section 11 of this act on or after July 1, 2038, and
37 before July 1, 2044, at least 60 percent of the below-the-line
38 personnel of the qualified production are Nevada residents.
39    2. To satisfy the applicable requirement for the employment of
40 Nevada residents as below-the-line personnel of the qualified
41 production, as set forth in subsection 1, the production company
42 producing the qualified production must satisfy the applicable
43 requirement under both of the following calculations:
44    (a) The percentage calculated by dividing a numerator
45 consisting of the number of workdays worked by Nevada residents
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                                 – 24 –
1 who are below-the-line personnel, excluding background actors, for
2 labor or services provided in this State by a denominator consisting
3 of the number of workdays worked by all below-the-line personnel,
4 excluding background actors, for labor or services provided in this
5 State, must exceed the applicable requirement set forth in subsection
6 1; and
7     (b) Except as otherwise provided in subsections 3 and 4, the
8 percentage calculated by dividing a numerator consisting of the
9 wages and salaries paid to Nevada residents who are below-the-line
10 personnel, excluding background actors, for labor or services
11 provided in this State by a denominator consisting of the total wages
12 and salaries paid to all below-the-line personnel, excluding
13 background actors, for labor or services provided in this State, must
14 exceed the applicable requirement set forth in subsection 1.
15     3. Except as otherwise provided in subsection 4, for the
16 purposes of the calculation required by paragraph (b) of subsection
17 2, wages and salaries paid to persons employed as one of each of the
18 following below-the-line personnel must not be included in the
19 calculation of the denominator as total wages and salaries paid to all
20 below-the-line personnel for labor or services provided in this State:
21     (a) Director of photography;
22     (b) First assistant director;
23     (c) Editor;
24     (d) VFX supervisor;
25     (e) Costume designer;
26     (f) Costume supervisor;
27     (g) Production designer;
28     (h) Unit production manager;
29     (i) Construction coordinator;
30     (j) Set decorator;
31     (k) Supervising art director;
32     (l) Financial controller;
33     (m) Special effects supervisor;
34     (n) Art director;
35     (o) Stunt coordinator;
36     (p) Makeup artist;
37     (q) Key hairstylist;
38     (r) Propmaster;
39     (s) Gaffer;
40     (t) Camera operator or steadicam operator;
41     (u) Sound mixer;
42     (v) Choreographer; and
43     (w) Any other position deemed by the Executive Director to be
44 specialized.
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                                  – 25 –
1     4. A calculation required by paragraph (b) of subsection 2
2 using a denominator adjusted pursuant to subsection 3 must not
3 result in the applicable requirement set forth in subsection 1 being
4 less than 80 percent of that applicable requirement.
5     5. A production company that has applied for a certificate of
6 eligibility for film infrastructure tax credits pursuant to section 11
7 of this act may, at any time, apply to the Executive Director of
8 the Office for a waiver of the applicable requirement for the
9 employment of Nevada residents as below-the-line personnel of the
10 qualified production, as set forth in subsection 1. The Executive
11 Director of the Office shall approve such a waiver if the production
12 company provides evidence satisfactory to the Executive Director
13 that:
14     (a) A good faith effort was made to identify and hire Nevada
15 residents to satisfy the applicable requirement of paragraph (b) of
16 subsection 2; and
17     (b) There is an insufficient number of Nevada residents is
18 available and qualified for employment as below-the-line personnel
19 of the qualified production.
20     Sec. 14. 1. Except as otherwise provided in subsections 2
21 and 4 and section 15 of this act, the base amount of film
22 infrastructure transferable tax credits issued to an eligible
23 production company pursuant to section 11 of this act must equal 30
24 percent of the qualified direct production expenditures.
25     2. Except as otherwise provided in subsection 3 and section 15
26 of this act, if the production company submitted the application for
27 the certificate of eligibility for film infrastructure transferable tax
28 credits pursuant to section 11 of this act on or after the date on
29 which the Office adopts the regulations required by section 11 of
30 this act, the Office shall not issue any film infrastructure transferable
31 tax credits to the production company for the qualified production if
32 the final assessment of the workforce plan submitted by the
33 production company for the qualified production pursuant to
34 paragraph (d) of subsection 3 of section 11 of this act does not
35 include documentation that the diversity goals set forth in
36 subparagraph (2) of paragraph (d) of subsection 3 of section 11 of
37 this act were met.
38     3. The Executive Director of the Office shall waive a reduction
39 in the cumulative amount of film infrastructure transferable tax
40 credits required pursuant to subsection 2 upon written proof to the
41 Executive Director that the production company made a good faith
42 effort to meet the requirements of that paragraph and there is an
43 insufficient number of persons available and qualified to meet the
44 requirements.
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1     4. Except as otherwise provided in subsection 5, the Executive
2 Director of the Office may:
3     (a) Reduce the cumulative amount of film infrastructure
4 transferable tax credits that are calculated pursuant to this section by
5 an amount equal to any damages incurred by the State or any
6 political subdivision of the State as a result of a qualified production
7 that is produced in this State; or
8     (b) Withhold film infrastructure transferable tax credits, in
9 whole or in part:
10(1) Until any pending legal action in this State against a
11 production company or involving a qualified production is resolved.
12(2) If a production company violates any state or local law.
13(3) If a production company is found to have knowingly
14 submitted any false statement, representation or certification in any
15 document submitted for the purpose of obtaining film infrastructure
16 transferable tax credits.
17     5. Before taking any action authorized by subsection 4, the
18 Executive Director of the Office shall:
19     (a) Consider any documentation submitted by the production
20 company related to the action under consideration;
21     (b) Make the following determinations in writing:
22(1) That good cause exists to take such action;
23(2) That the action is reasonable based on the circumstances
24 of the underlying incident on which the reduction or withholding of
25 film infrastructure transferable tax credits authorized pursuant to
26 subsection 4 is based; and
27(3) The amount of any reduction or withholding of film
28 infrastructure transferable tax credits authorized pursuant to
29 subsection 4 is commensurate with the severity of the underlying
30 incident on which the reduction or withholding is based; and
31     (c) Notify the production company, in writing, of the
32 determination made pursuant to paragraph (b).
33     Sec. 15. 1. Except as otherwise provided in this section, the
34 Office shall not approve any application for a certificate of
35 eligibility for film infrastructure transferable tax credits submitted
36 pursuant to section 11 of this act if:
37     (a) Approval of the application would cause the total amount of
38 film infrastructure transferable tax credits approved pursuant to
39 section 11 of this act to exceed the sum of $95,000,000 for each
40 fiscal year beginning on or after July 1, 2029.
41     (b) The application is submitted by a production company in a
42 fiscal year that begins on or after July 1, 2044.
43     2. Except as otherwise provided in paragraph (b) of subsection
44 1 and subsection 3, the amount of film infrastructure transferable tax
45 credits authorized for a fiscal year that are not approved for that
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                                   – 27 –
1 fiscal year may be carried forward and made available for approval
2 only during the next fiscal year, but the amount of film
3 infrastructure transferable tax credits carried forward and made
4 available for approval during the next fiscal year must not exceed
5 $47,500,000. For any fiscal year to which film infrastructure
6 transferable tax credits are carried forward from the immediately
7 preceding fiscal year pursuant to this subsection, the film
8 infrastructure transferable tax credits that have been carried forward
9 must be deemed to be the first film infrastructure transferable tax
10 credits approved until the total amount of film infrastructure
11 transferable tax credits carried forward from the immediately
12 preceding fiscal year have been approved.
13     3. If the Summerlin Production Studios Project does not satisfy
14 the criteria set forth in sub-subparagraph (I) of subparagraph (1) of
15 paragraph (a) of subsection 1 of section 10 of this act, the Office
16 shall not issue a certificate of film infrastructure transferable tax
17 credits to a production company that produces a qualified
18 production for which a certificate of eligibility has been issued
19 pursuant to section 11 of this act.
20     4. Except as otherwise provided in this section, if the Office
21 approves an application for a certificate of eligibility pursuant to
22 section 11 of this act:
23     (a) Before July 1, 2029, the Office shall assign the amount of
24 film infrastructure transferable tax credits identified under the
25 certificate of eligibility to Fiscal Year 2029-2030.
26     (b) On or after July 1, 2029, the Office shall assign the amount
27 of film infrastructure transferable tax credits identified under the
28 certificate of eligibility to the fiscal year in which the application for
29 the certificate of eligibility is approved.
30     5. Except as otherwise provided in subsection 2, an amount of
31 film infrastructure transferable tax credits approved by the Office
32 under a certificate of eligibility issued to a production company
33 pursuant to section 11 of this act that exceeds the amount of film
34 infrastructure transferable tax credits approved by the Office under a
35 certificate of film infrastructure transferable tax credits issued to the
36 production company pursuant to section 11 of this act may be added
37 to the amount made available for approval during subsequent fiscal
38 years.
39     6. The film infrastructure transferable tax credits issued to any
40 production company for any qualified production pursuant to
41 section 11 of this act expire at the end of the calendar year that is 6
42 years after the date on which the film infrastructure transferable tax
43 credits are issued to the production company.
44     Sec. 16. 1. Except as otherwise provided in this subsection,
45 if an application for a certificate of eligibility is approved pursuant
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1 to section 11 of this act, principal photography of the qualified
2 production must begin not more than 90 days after the date on
3 which the decision on the application is issued. The Office:
4     (a) Shall prescribe by regulation the procedure for determining
5 the date of commencement of qualified productions that do not
6 include photography for the purposes of this section.
7     (b) May extend by not more than 90 days the period otherwise
8 prescribed by this subsection, except that in the case of a force
9 majeure, the Office may extend the period for more than 90 days.
10     2. A production company that produces a qualified production
11 shall submit the final assessment of the workforce plan and audit
12 required by section 11 of this act and all other required information
13 to the Office and the Department of Taxation within the time
14 required by paragraph (d) or (e) of subsection 3 of section 11 of this
15 act, as applicable. Production of the qualified production must be
16 completed within 18 months after the date of commencement of
17 principal photography, except that the Office may extend this period
18 for completion of the qualified production by not more than 6
19 months. If the Office or the Department determines that information
20 submitted pursuant to this subsection is incomplete, the production
21 company shall, not later than 30 days after receiving notice that the
22 information is incomplete, provide to the Office or the Department,
23 as applicable, all additional information required by the Office or
24 the Department.
25     Sec. 17. 1. Except as otherwise provided in subsection 3, a
26 production company that is found to have knowingly submitted any
27 false statement, representation or certification in any document
28 submitted for the purpose of obtaining film infrastructure
29 transferable tax credits, or that otherwise becomes ineligible for film
30 infrastructure transferable tax credits after receiving the film
31 infrastructure transferable tax credits pursuant to section 11 of this
32 act, shall repay to the Department of Taxation or the Nevada
33 Gaming Control Board, as applicable, any portion of the film
34 infrastructure transferable tax credits to which the production
35 company is not entitled.
36     2. Film infrastructure transferable tax credits purchased in
37 good faith are not subject to forfeiture or repayment by the
38 transferee unless the transferee submitted fraudulent information in
39 connection with the purchase.
40     3. A production company is not required to forfeit or repay any
41 portion of the film infrastructure transferable tax credits to which
42 the production company is otherwise entitled if the production
43 company demonstrates that the production company became
44 ineligible for the film infrastructure transferable tax credits as a
45 result of unforeseen circumstances beyond the control of the
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                                 – 29 –
1 production company, including, without limitation, an event in the
2 nature of force majeure.
3     Sec. 18. 1. Except as otherwise provided in this subsection,
4 not later than June 30, 2026, the Clark County Board of County
5 Commissioners shall create a production studio entertainment
6 district for the purpose of enhancing early childhood education
7 opportunities, including public prekindergarten, for children in
8 Clark County. The Clark County Board of County Commissioners
9 shall not create a production studio entertainment district pursuant to
10 this section if the Office and the lead participant in the Summerlin
11 Production Studios Project have not entered into a development
12 agreement pursuant to section 10 of this act within the period
13 required by that section or, if a production studio entertainment
14 district has been created, the Clark County Board of County
15 Commissioners shall dissolve the district if the Office and the lead
16 participant in the Project have not entered into a development
17 agreement pursuant to section 10 of this act within the period
18 required by that section. The district must:
19     (a) Be located entirely within the unincorporated areas of Clark
20 County and outside the boundaries of any incorporated city;
21     (b) Include all parcels of land that are located within the
22 boundaries of the Summerlin Production Studios Project; and
23     (c) Not include any parcels of land other than the parcels of land
24 described in paragraph (b).
25     2. To make payments pursuant to subsections 3 and 4, the
26 Clark County Board of County Commissioners shall pledge the
27 proceeds of the following taxes, fees and charges, but excluding any
28 taxes, fees or charges imposed for the purpose of providing services
29 related to public safety or indigent services pursuant to any
30 provision of law and any amount pledged for the repayment of a
31 bond issued before the effective date of this act:
32     (a) The tax imposed for the purposes of NRS 244A.597 to
33 244A.655, inclusive, at the rate of 4 percent of the gross receipts
34 from the rental of transient lodging within the production studio
35 entertainment district;
36     (b) The tax imposed pursuant to NRS 244.3352 at the rate of 2
37 percent of the gross receipts from the rental of transient lodging
38 within the production studio entertainment district;
39     (c) The taxes imposed pursuant to chapter 361 of NRS on
40 property of any kind within the production studio entertainment
41 district for the general operating expenses of Clark County;
42     (d) The taxes imposed pursuant to chapter 361 of NRS on
43 property of any kind within the production studio entertainment
44 district for the general operating expenses of Summerlin Town; and
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                                – 30 –
1     (e) The basic city-county relief tax, as defined in NRS 377.020,
2 with regard to tangible personal property sold at retail, or stored,
3 used or otherwise consumed, in the production studio entertainment
4 district, after the deduction made as compensation to the State for
5 the cost of collecting the tax.
6     3. After the creation of the production studio entertainment
7 district, the Department of Taxation, the Clark County Board of
8 County Commissioners, the Board of Trustees of the Clark County
9 School District and the Board of the Public Employees’ Benefits
10 Program shall enter into an agreement to transfer money secured by
11 a pledge of, and payable from, any money pledged pursuant to
12 subsection 2 and received with respect to the district. The agreement
13 must provide for a transfer to:
14     (a) The Public Employees’ Benefits Program of money pledged
15 pursuant to paragraph (a) of subsection 2 and received by Clark
16 County, specifying the dates and procedure for the distribution of
17 money pledged pursuant to paragraph (a) of subsection 2, for credit
18 to a separate account administered by the Board of the Public
19 Employees’ Benefits Program, which must be used to make health
20 reimbursement arrangement contributions for active state employees
21 and to pay the share of the cost of qualified medical expenses for
22 each person who has retired with state service and whose coverage
23 is provided through the Public Employees’ Benefits Program by an
24 individual medical plan offered pursuant to the Health Insurance for
25 the Aged Act, 42 U.S.C. §§ 1395 et seq., starting in Fiscal Year
26 2031-2032 and each biennium thereafter.
27     (b) The Clark County School District of money pledged
28 pursuant to paragraphs (b) to (e), inclusive, of subsection 2 and
29 received by the Department of Taxation or Clark County, including,
30 without limitation, specifying the dates and procedure for the
31 distribution of money pledged pursuant to subsection 2. An
32 agreement entered into pursuant to this section is not subject to the
33 limitations of subsection 1 of NRS 354.626 and may, at the option
34 of the Clark County Board of County Commissioners, be binding on
35 Clark County beyond the fiscal year in which it was made, if the
36 agreement pertains solely to the money pledged pursuant to
37 subsection 2.
38     4. The Clark County School District shall:
39     (a) Deposit all money received pursuant to this section in a
40 separate account established and administered by the Board of
41 Trustees of the Clark County School District and use money in such
42 account solely for the purposes of prekindergarten education
43 programs in the Clark County School District, which, at the
44 discretion of the Clark County School District, may include, without
45 limitation, the development and implementation of early childhood
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                                 – 31 –
1 education pathways for the Clark County School District in
2 collaboration with the College of Education at the University of
3 Nevada, Las Vegas.
4     (b) Submit a report on or before July 1 of each year on the use
5 of all money received pursuant to this section to the Office of
6 Economic Development within the Office of the Governor. The
7 Office shall include the report received from the Clark County
8 School District in the report required pursuant to section 20 of this
9 act.
10     5. The Department of Taxation may adopt regulations
11 regarding procedures for the identification and segmentation with
12 respect to the production studio entertainment district of the taxes,
13 fees and charges described in subsection 2.
14     6. The Clark County Board of County Commissioners may
15 adopt, by ordinance, procedures for the identification and
16 segmentation with respect to the production studio entertainment
17 district of the taxes, fees and charges described in subsection 2.
18     7. The Department of Taxation and Clark County, and any
19 other local government or public body to which the taxes, fees and
20 charges described in subsection 2 are paid, shall provide
21 commercially reasonable procedures by which such taxes, fees and
22 charges paid by any business or other person operating in the
23 production studio entertainment district are to be identified and
24 segmented. All such businesses or other persons operating in the
25 production studio entertainment district shall follow the established
26 commercially reasonable procedures.
27     8. The provisions of this section must not be applied to modify,
28 directly or indirectly, any taxes levied or revenues pledged to impair
29 adversely any outstanding obligations of any local government or
30 the State, including, without limitation, bonds, notes, medium-term
31 financing, letters of credit and any other financial obligation, until
32 all such obligations have been discharged in full or provision for
33 their payment and redemption has been fully made.
34     Sec. 19. 1. The lead participant shall, on or before August 1
35 of each even-numbered year, prepare and submit to the Governor,
36 the Director of the Legislative Counsel Bureau for transmittal to the
37 Legislature and the Office a report on the performance of the Project
38 for the immediately preceding period consisting of 2 fiscal years and
39 cumulatively for the period beginning on the effective date of this
40 act and ending on the last day of the immediately preceding fiscal
41 year. Except as otherwise provided in subsections 2 and 3, the report
42 must include, without limitation:
43     (a) The following information concerning the development of
44 the Project:
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                                 – 32 –
1(1) The cumulative capital investment, by component,
2 including the studio campus, vocational-training studio and
3 supporting uses;
4(2) Square footage delivered and acreage improved, by
5 component;
6(3) The status of capital investment requirements and
7 requirements for direct production expenditures included in the
8 development agreement pursuant to paragraph (a) of subsection 1 of
9 section 10 of this act and any penalties imposed on the Project
10 pursuant to section 10 of this act;
11(4) Any improvements to public infrastructure installed or
12 financed by the Project;
13(5) Any capital investment outside of the site of the Project
14 credited toward meeting the capital investment requirements
15 included in the development agreement pursuant to paragraph (a) of
16 subsection 1 of section 10 of this act;
17(6) The primary user or tenant of each completed building
18 and space occupied and a brief business description;
19(7) The share of total occupied square footage used by firms
20 whose principal business supports motion picture, television, digital
21 media or related content-creation activities;
22(8) Total employment related to construction of the Project;
23(9) Total employment at the Project that is not related to
24 construction of the Project;
25(10) Aggregate wages and salaries paid to employees in
26 industries related to the Project, separately by industry;
27(11) An analysis of the employment of Nevada residents in
28 industries related to the Project and plans to increase the percentage
29 of Nevada residents who are employed in industries related to the
30 Project;
31(12) Demographic information concerning persons who
32 participate in a program of vocational training and education offered
33 at the Nevada Partners Vocational Training Studio;
34(13) Any community investments in workforce training and
35 education; and
36(14) Any efforts to develop vendor procurement
37 opportunities for small businesses and businesses owned by women,
38 veterans or other traditionally underrepresented groups.
39     (b) The following information concerning the production of
40 qualified productions, in whole or in part, at the site of the Project,
41 regardless of whether the production company applies for or is
42 issued film infrastructure transferable tax credits for the qualified
43 production:
44(1) The total amount of direct production expenditures, as
45 defined in section 10 of this act;
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1(2) The aggregate number of persons in Nevada employed by
2 qualified productions, the aggregate amount of wages paid to those
3 persons and aggregated demographic information concerning those
4 persons;
5(3) The number of persons employed by each qualified
6 production who were paid compensation of more than $1,000,000
7 for labor or services provided for the qualified production and the
8 total number of persons employed by qualified productions were
9 paid more than $1,000,000 for labor or services provided for the
10 qualified production;
11(4) For each qualified production and cumulatively for all
12 qualified productions, the percentage of below-the-line personnel,
13 by occupation and in aggregate, providing labor or services who
14 were Nevada residents, calculated by dividing the number of
15 workdays worked by Nevada residents who are below-the-line
16 personnel, excluding background actors, by the number of workdays
17 worked by all below-the-line personnel, excluding background
18 actors;
19(5) For each qualified production and cumulatively for all
20 qualified productions, the percentage of below-line personnel, by
21 occupation and in aggregate, providing labor or services who were
22 Nevada residents, calculated by dividing the wages and salaries paid
23 to Nevada residents who are below-the-line personnel, excluding
24 background actors, for labor or services provided in this State by the
25 total wages and salaries paid to all below-the-line personnel,
26 excluding background actors;
27(6) For each qualified production and cumulatively for all
28 qualified productions, the percentage of above-the-line personnel,
29 by occupation and in aggregate, providing labor or services who
30 were Nevada residents, calculated by dividing the number of
31 workdays worked by Nevada residents who are above-the-line
32 personnel by the number of workdays worked by all above-the-line
33 personnel;
34(7) For each qualified production and cumulatively for all
35 qualified productions, the percentage of above-the-line personnel,
36 by occupation and in aggregate, providing labor or services who
37 were Nevada residents, calculated by dividing the wages and
38 salaries paid to Nevada residents who are above-the-line personnel
39 for labor or services provided in this State by the total wages and
40 salaries paid to all above-the-line personnel;
41(8) For each qualified production and cumulatively for all
42 qualified productions, the percentage of total compensation paid to
43 above-the-line personnel, by occupation and in aggregate, and the
44 percentage of total compensation paid to below-the-line personnel,
45 by occupation and in aggregate;
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                                  – 34 –
1(9) The period during which each qualified production was in
2 Nevada and employed persons in Nevada; and
3(10) The number of qualified productions that were produced
4 by persons or entities that are affiliated with the Summerlin
5 Production Studios Project and the number of qualified productions
6 that were produced by persons or entities that are not affiliated with
7 the Project.
8     2. The Executive Director of the Office shall waive any
9 requirement to report pursuant to subsection 1 that would result in
10 the disclosure of the compensation of an individual, any personally
11 identifiable information or a trade secret, as defined in NRS
12 600A.030, except that the Executive Director shall require the
13 reporting of such information, as described in subsection 1, in
14 aggregated form to avoid the disclosure of the compensation of an
15 individual, any personally identifiable information or a trade secret,
16 as defined in NRS 600A.030.
17     3. If any information required to be submitted to the Office
18 pursuant to subparagraph (3) to (8), inclusive, of paragraph (b) of
19 subsection 1 has been submitted to the Office pursuant to an audit
20 conducted pursuant to paragraph (e) of subsection 3 of section 11 of
21 this act, such information may be reported to the Office by reference
22 to the information already provided to eliminate any duplicative
23 reporting.
24     4. The Office shall include a copy of the report received from
25 the Project in the report required by section 20 of this act.
26     Sec. 20. The Office shall include in the report prepared and
27 submitted pursuant to NRS 360.7598, on or before December 1 of
28 each even-numbered year, to the Governor and to the Director of the
29 Legislative Counsel Bureau for transmittal to the Legislature, a
30 report for the two immediately preceding fiscal years and
31 cumulatively for the period beginning on the effective date of this
32 act and ending on the last day of the immediately preceding fiscal
33 year:
34     1. The information provided to the Office pursuant to section
35 19 of this act;
36     2. The status of capital investment requirements and
37 requirements for direct production expenditures included in the
38 development agreement pursuant to paragraph (a) of subsection 1 of
39 section 10 of this act and any penalties imposed on the Project
40 pursuant to section 10 of this act;
41     3. The following information related to applications for film
42 infrastructure transferable tax credits and qualified productions:
43     (a) The number of applications submitted for a certificate of
44 eligibility for film infrastructure transferable tax credits pursuant to
45 section 11 of this act;
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                                 – 35 –
1     (b) The number of qualified productions for which film
2 infrastructure transferable tax credits were approved;
3     (c) The amount of film infrastructure transferable tax credits
4 approved;
5     (d) The amount of film infrastructure transferable tax credits
6 used;
7     (e) The amount of film infrastructure transferable tax credits
8 transferred; and
9     (f) The amount of film infrastructure transferable tax credits
10 taken against each allowable fee or tax, including the actual amount
11 used and outstanding, in total and for each qualified production;
12     4. Recommendations for strengthening the overall operation of
13 the program for the issuance of film infrastructure transferable tax
14 credits, including, without limitation, methods to promote and
15 encourage the development and establishment of production
16 companies in Nevada, including, without limitation, production
17 companies that are not affiliated with the Summerlin Production
18 Studios Project;
19     5. An overview of the motion picture and television industry in
20 this State, including, without limitation, the total number of
21 qualified productions in this State for which film infrastructure
22 transferable tax credits or noninfrastructure transferable tax credits
23 have not been approved, data concerning employment in the motion
24 picture and television industry in this State and production revenue
25 generated in this State;
26     6. Demographic information concerning persons who
27 participate in a program of vocational training and education offered
28 at the Nevada Partners Vocational Training Studio, or if the Nevada
29 Partners Vocational Training Studio is not completed and
30 operational, the equivalent facility that is completed and operational;
31     7. Demographic information concerning persons who
32 participate in a program of vocational training and education offered
33 at the center described in subparagraph (6) of paragraph (a) of
34 subsection 1 of section 10 of this act, or if that is not completed and
35 operational, the equivalent facility that is completed and operational
36 pursuant to subparagraph (7) of paragraph (a) of subsection 1 of
37 section 10 of this act;
38     8. The report received from the Clark County School District
39 pursuant to subsection 4 of section 18 of this act;
40     9. The report received from the Summerlin Production Studios
41 Project pursuant to subsection 2 of section 19 of this act; and
42     10. The compilation of information provided in reports made
43 by recipients of grants from the Account for Nevada Film, Media
44 and Related Technology Education and Vocational Training created
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                                 – 36 –
1 by section 38 of this act, which is provided to the Office pursuant to
2 section 40 of this act.
3     Sec. 21. Chapter 353 of NRS is hereby amended by adding
4 thereto a new section to read as follows:
5     1. The Director of the Office of Finance in the Office of the
6 Governor shall submit a request to the State Board of Examiners
7 to suspend the authority of taxpayers to redeem film infrastructure
8 transferable tax credits issued pursuant to section 11 of this act or
9 noninfrastructure transferable tax credits issued pursuant to NRS
10 360.759, or both, if, at any time during a fiscal year, the Economic
11 Forum projects that the anticipated revenue of the State for that
12 fiscal year will fall short by 10 percent or more of the total
13 anticipated revenue for the fiscal year, as projected by the
14 Economic Forum for that fiscal year pursuant to paragraph (e) of
15 subsection 1 of NRS 353.228 and as adjusted by any legislation
16 enacted by the Legislature that affects state revenue for that fiscal
17 year.
18     2. The State Board of Examiners shall consider a request
19 made pursuant to subsection 1 and shall, if it finds that a
20 suspension is warranted based on the magnitude of the shortfall in
21 revenue, recommend to the Interim Finance Committee for its
22 independent evaluation and action that the suspension be imposed
23 for a period of time not to exceed 18 months after the date on
24 which the suspension is imposed. The Interim Finance Committee
25 is not bound to follow the recommendation of the State Board of
26 Examiners.
27     3. If the Interim Finance Committee finds that a suspension
28 recommended by the State Board of Examiners should and may
29 lawfully be made, the Committee shall by resolution direct the
30 Department of Taxation and the Nevada Gaming Control Board to
31 suspend the redemption of any film infrastructure transferable tax
32 credits issued pursuant to section 11 of this act or any
33 noninfrastructure transferable tax credits issued pursuant to NRS
34 360.759, or both, for a period of time not to exceed 18 months
35 after the date on which the suspension is imposed.
36     4. If a resolution is issued pursuant to subsection 3:
37     (a) The expiration date for film infrastructure transferable tax
38 credits set forth pursuant to section 15 of this act and
39 noninfrastructure transferable tax credits set forth pursuant to
40 NRS 360.7594, for which the suspension is imposed, must be
41 extended by the number of days that such transferable tax credits
42 may not be redeemed pursuant to the resolution.
43     (b) The total amount of film infrastructure transferable tax
44 credits set forth pursuant to section 15 of this act and
45 noninfrastructure transferable tax credits set forth pursuant to
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                                – 37 –
1 NRS 360.7594 used by all taxpayers must not exceed 133 percent
2 of the total amount of film infrastructure transferable tax credits
3 pursuant to section 15 of this act and noninfrastructure
4 transferable tax credits pursuant to NRS 360.7594 authorized for
5 a fiscal year beginning on or after July 1, 2029, and before
6 June 30, 2044.
7     (c) For the purposes of paragraph (b), film infrastructure
8 transferable tax credits set forth pursuant to section 15 of this act
9 and noninfrastructure transferable tax credits set forth pursuant
10 to NRS 360.7594 must be accepted based on the date on which
11 they were issued, with the credits issued earliest in time accepted
12 until the limit set forth in paragraph (b) is met.
13     Sec. 22. Chapter 360 of NRS is hereby amended by adding
14 thereto a new section to read as follows:
15     1. Except as otherwise provided in subsections 3, 4 and 5, the
16 Office shall not issue noninfrastructure transferable tax credits to
17 a production company pursuant to NRS 360.759 unless, in
18 addition to meeting any other requirements for the issuance of
19 film infrastructure transferable tax credits, the production
20 company satisfies the applicable requirement for the employment
21 of Nevada residents as below-the-line personnel of the qualified
22 production as follows:
23     (a) For a qualified production that submits an application for
24 a certificate of eligibility for noninfrastructure transferable tax
25 credits pursuant to NRS 360.759 on or after July 1, 2026, and
26 before July 1, 2027, at least 10 percent of the below-the-line
27 personnel of the qualified production are Nevada residents.
28     (b) For a qualified production that submits an application for
29 a certificate of eligibility for noninfrastructure transferable tax
30 credits pursuant to NRS 360.759 on or after July 1, 2027, and
31 before July 1, 2028, at least 15 percent of the below-the-line
32 personnel of the qualified production are Nevada residents.
33     (c) For a qualified production that submits an application for
34 a certificate of eligibility for noninfrastructure transferable tax
35 credits pursuant to NRS 360.759 on or after July 1, 2028, and
36 before July 1, 2029, at least 20 percent of the below-the-line
37 personnel of the qualified production are Nevada residents.
38     (d) For a qualified production that submits an application for
39 a certificate of eligibility for noninfrastructure transferable tax
40 credits pursuant to NRS 360.759 on or after July 1, 2029, and
41 before July 1, 2030, at least 25 percent of the below-the-line
42 personnel of the qualified production are Nevada residents.
43     (e) For a qualified production that submits an application for
44 a certificate of eligibility for noninfrastructure transferable tax
45 credits pursuant to NRS 360.759 on or after July 1, 2030, and
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1 before July 1, 2031, at least 30 percent of the below-the-line
2 personnel of the qualified production are Nevada residents.
3    (f) For a qualified production that submits an application for a
4 certificate of eligibility for noninfrastructure transferable tax
5 credits pursuant to NRS 360.759 on or after July 1, 2031, and
6 before July 1, 2032, at least 40 percent of the below-the-line
7 personnel of the qualified production are Nevada residents.
8    (g) For a qualified production that submits an application for
9 a certificate of eligibility for noninfrastructure transferable tax
10 credits pursuant to NRS 360.759 on or after July 1, 2032, and
11 before July 1, 2038, at least 50 percent of the below-the-line
12 personnel of the qualified production are Nevada residents.
13    (h) For a qualified production that submits an application for
14 a certificate of eligibility for noninfrastructure transferable tax
15 credits pursuant to NRS 360.759 on or after July 1, 2038, and
16 before July 1, 2044, at least 60 percent of the below-the-line
17 personnel of the qualified production are Nevada residents.
18    2. To satisfy the applicable requirement for the employment
19 of Nevada residents as below-the-line personnel of the qualified
20 production, as set forth in subsection 1, the production company
21 producing the qualified production must satisfy the applicable
22 requirement under both of the following calculations:
23    (a) The percentage calculated by dividing a numerator
24 consisting of the number of workdays worked by Nevada residents
25 who are below-the-line personnel, excluding background actors,
26 for labor or services provided in this State by a denominator
27 consisting of the number of workdays worked by all below-the-line
28 personnel, excluding background actors, for labor or services
29 provided in this State, must exceed the applicable requirement set
30 forth in subsection 1; and
31    (b) Except as otherwise provided in subsections 3 and 4, the
32 percentage calculated by dividing a numerator consisting of the
33 wages and salaries paid to Nevada residents who are below-the-
34 line personnel, excluding background actors, for labor or services
35 provided in this State by a denominator consisting of the total
36 wages and salaries paid to all below-the-line personnel, excluding
37 background actors, for labor or services provided in this State,
38 must exceed the applicable requirement set forth in subsection 1.
39    3. Except as otherwise provided in subsection 4, for the
40 purposes of the calculation required by paragraph (b) of
41 subsection 2, wages and salaries paid to persons employed as one
42 of each of the following below-the-line personnel must not be
43 included in the calculation of the denominator as total wages and
44 salaries paid to all below-the-line personnel for labor or services
45 provided in this State:
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1     (a) Director of photography;
2     (b) First assistant director;
3     (c) Editor;
4     (d) VFX supervisor;
5     (e) Costume designer;
6     (f) Costume supervisor;
7     (g) Production designer;
8     (h) Unit production manager;
9     (i) Construction coordinator;
10     (j) Set decorator;
11     (k) Supervising art director;
12     (l) Financial controller;
13     (m) Special effects supervisor;
14     (n) Art director;
15     (o) Stunt coordinator;
16     (p) Makeup artist;
17     (q) Key hairstylist;
18     (r) Propmaster;
19     (s) Gaffer;
20     (t) Camera operator or steadicam operator;
21     (u) Sound mixer;
22     (v) Choreographer; and
23     (w) Any other position deemed by the Executive Director to be
24 specialized.
25     4. A calculation required by paragraph (b) of subsection 2
26 using a denominator adjusted pursuant to subsection 3 must not
27 result in the applicable requirement set forth in subsection 1 being
28 less than 80 percent of that applicable requirement.
29     5. A production company that has applied for a certificate of
30 eligibility for noninfrastructure transferable tax credits pursuant
31 to NRS 360.759 may, at any time, apply to the Executive Director
32 of the Office for a waiver of the applicable requirement for the
33 employment of Nevada residents as below-the-line personnel of
34 the qualified production, as set forth in subsection 1. The
35 Executive Director of the Office shall approve such a waiver if the
36 production company provides evidence satisfactory to the
37 Executive Director that:
38     (a) A good faith effort was made to identify and hire Nevada
39 residents to satisfy the applicable requirement of paragraph (d) of
40 subsection 3; and
41     (b) There is an insufficient number of Nevada residents is
42 available and qualified for employment as below-the-line
43 personnel of the qualified production.
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                                  – 40 –
1    Sec. 23. NRS 360.758 is hereby amended to read as follows:
2    360.758 As used in NRS 360.758 to 360.7598, inclusive, and
3 section 22 of this act, unless the context otherwise requires, the
4 words and terms defined in NRS 360.7581 to 360.7586, inclusive,
5 have the meanings ascribed to them in those sections.
6    Sec. 24. NRS 360.7582 is hereby amended to read as follows:
7    360.7582 “Below-the-line personnel” means a person
8 employed to work on a qualified production after production begins
9 and before production is completed, including, without limitation,
10 [an extra,] a background actor, best boy, boom operator, camera
11 loader, camera operator, assistant camera operator, compositor,
12 dialogue editor, film editor, assistant film editor, focus puller, Foley
13 operator, Foley editor, gaffer, grip, key grip, lighting crew, lighting
14 board operator, lighting technician, music editor, sound editor,
15 sound effects editor, sound mixer, steadicam operator, first assistant
16 camera operator, second assistant camera operator, digital imaging
17 technician, camera operator working with a director of photography,
18 electric best boy, grip best boy, dolly grip, rigging grip, assistant
19 key for makeup, assistant key for hair, assistant script supervisor, set
20 construction foreperson, lead set dresser, assistant key for wardrobe,
21 scenic foreperson, assistant propmaster, assistant audio mixer,
22 assistant boom person, assistant key for special effects and other
23 similar personnel. The term does not include above-the-line
24 personnel.
25    Sec. 25. NRS 360.7586 is hereby amended to read as follows:
26    360.7586 1. “Qualified production” includes preproduction,
27 production and postproduction and means:
28    (a) A theatrical, direct-to-video or other media motion picture.
29    (b) A made-for-television motion picture.
30    (c) Visual effects or digital animation sequences.
31    (d) A television pilot program.
32    (e) A television, Internet or other media series, including,
33 without limitation, a comedy, drama, miniseries, soap opera, talk
34 show, game show or telenovela, or an episode of such a series.
35    (f) A reality show.
36    (g) A national or regional commercial or series of commercials.
37    (h) An infomercial.
38    (i) A music video.
39    (j) A documentary film or series.
40    (k) Other visual media productions, including, without
41 limitation, video games , digital media and mobile applications.
42    2. The term does not include:
43    (a) A news, weather or current events program.
44    (b) A production that is primarily produced for industrial,
45 corporate or institutional use.
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                                  – 41 –
1     (c) A telethon or any production that solicits money, other than a
2 production which is produced for national distribution.
3     (d) A political advertisement.
4     (e) A sporting event, including, without limitation, a sportscast,
5 preshow, postshow or sports newscast related to a sporting event. A
6 qualified production described by subsection 1 shall not be deemed
7 a sporting event for the purposes of this paragraph for the sole
8 reason that it features athletes or relates to sports.
9     (f) A gala, pageant or awards show.
10     (g) Any type of media production created solely for the purpose
11 of posting the production on social media, as defined by
12 regulations adopted by the Office pursuant to NRS 360.759.
13     (h) Any other type of production that is excluded by regulations
14 adopted by the Office of Economic Development pursuant to
15 NRS 360.759.
16     Sec. 26. NRS 360.759 is hereby amended to read as follows:
17     360.759 1. A production company that produces a qualified
18 production in this State in whole or in part may apply to the Office
19 of Economic Development for a certificate of eligibility for
20 noninfrastructure transferable tax credits for any qualified direct
21 production expenditures. The noninfrastructure transferable tax
22 credits may be applied to:
23     (a) Any tax imposed by chapters 363A and 363B of NRS;
24     (b) The gaming license fees imposed by the provisions of
25 NRS 463.370;
26     (c) Any tax imposed pursuant to chapter 680B of NRS; or
27     (d) Any combination of the fees and taxes described in
28 paragraphs (a), (b) and (c).
29     2. [The] Except as otherwise provided in NRS 360.7594, the
30 Office [may] shall approve an application for a certificate of
31 eligibility for noninfrastructure transferable tax credits if the Office
32 finds that the production company producing the qualified
33 production qualifies for the noninfrastructure transferable tax
34 credits pursuant to subsection 3. If the Office approves the
35 application, the Office shall [calculate] :
36     (a) Calculate the estimated amount of the noninfrastructure
37 transferable tax credits pursuant to NRS 360.7592, 360.7593 and
38 360.7594 [.] ; and
39     (b) Immediately forward a copy of the certificate of eligibility
40 that identifies the estimated amount of the noninfrastructure
41 transferable tax credits to:
42(1) The applicant;
43(2) The Department of Taxation; and
44(3) The Nevada Gaming Control Board.
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                                  – 42 –
1    3. To be eligible for noninfrastructure transferable tax credits
2 pursuant to this section, a production company must:
3    (a) [Submit] Before the beginning of principal photography,
4 submit to the Office an application for a certificate of eligibility that
5 meets the requirements of subsection 4;
6    (b) [Provide proof satisfactory] Submit to the Office [that the
7 qualified production is in the economic interest of the State;
8    (c) Provide proof satisfactory to the Office] with the application
9 for a certificate of eligibility:
10(1) Proof that 70 percent or more of the funding for the
11 qualified production has been obtained;
12    [(d) Provide proof satisfactory to the Office] and
13(2) Proof that [at] :
14(I) At least [60] 50 percent of the [direct production
15 expenditures for:
16(1) Preproduction;
17(2) Production; and
18(3) If any direct production expenditures for postproduction
19 will be incurred in this State, postproduction,
20 ] total principal photography days of the qualified production
21 will [be incurred] take place in this State [as qualified direct
22 production expenditures;
23    (e)] ; or
24(II) The qualified production will incur qualified direct
25 production expenditures in this State of at least $5,000,000;
26    (c) Satisfy the applicable requirement for the employment of
27 Nevada residents as below-the-line personnel of the qualified
28 production, as set forth in section 22 of this act;
29    (d) Provide to the Office:
30(1) With the application for a certificate of eligibility, proof
31 that the applicant has in place a workforce plan for the qualified
32 production that outlines specific goals for:
33(I) Hiring a workforce that reflects the diversity of this
34 State, with not less than 30 percent of the persons hired for
35 qualified productions being members of a traditionally
36 underrepresented group;
37(II) Adopting nondiscriminatory policies and practices
38 to ensure that the qualified production does not discriminate in
39 employment, contracting or any other term or condition of
40 participation in the qualified production, against any protected
41 class of individuals pursuant to state or federal law;
42(III) Using vendors that are minority-owned business
43 enterprises or woman-owned business enterprises; and
44(IV) Achieving the requirements set forth in subsection
45 3 of 360.7592; and
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                                 – 43 –
1(2) Not later than 365 days after the completion of principal
2 photography of the qualified production, unless the Office agrees
3 to extend this period by not more than 180 days, a final assessment
4 of the workforce plan that includes documentation on whether the
5 production met or made good faith efforts to achieve the goals set
6 forth in the workforce plan;
7     (e) Not later than [270] 365 days after the completion of
8 principal photography of the qualified production or, if any direct
9 production expenditures for postproduction will be incurred in this
10 State, not later than [270] 365 days after the completion of
11 postproduction, unless the Office agrees to extend this period by not
12 more than [90] 180 days, provide the Office with an audit of the
13 qualified production that includes [an] :
14(1) An itemized report of qualified direct production
15 expenditures which:
16[(1)] (I) Shows that the qualified production incurred
17 qualified direct production expenditures of $500,000 or more; [and
18(2)] (II) If the production company complied with the
19 requirement of subparagraph (2) of paragraph (b) by providing to
20 the Office with the application for a certificate of eligibility proof
21 that the qualified production would incur qualified direct
22 production expenditures in this State of at least $5,000,000, shows
23 that the qualified production incurred qualified direct production
24 expenditures in this State of at least $5,000,000; and
25(III) Is certified by an independent certified public
26 accountant in this State who is approved by the Office;
27(2) A list of each contractor, vendor, personal service
28 corporation or loan-out company or other business engaged by the
29 production company to provide goods or perform services in an
30 aggregate amount of at least $10,000 or more in this State in
31 connection with the qualified production and the amount paid to
32 each contractor, vendor, personal service corporation or loan-out
33 company or other business for such goods or services; and
34(3) Proof that the production company secured all licenses
35 and registrations required to do business in each location in this
36 State at which the qualified production was produced;
37     (f) Pay the cost of the audit required by paragraph (e);
38     (g) Enter into a written agreement with the Office that requires
39 the production company to include:
40(1) In the end screen credits of the qualified production, a
41 logo of this State provided by the Office which indicates that the
42 qualified production was filmed or otherwise produced in Nevada;
43 or
44(2) If the qualified production does not have end screen
45 credits, another acknowledgment in the final version of the qualified
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                                 – 44 –
1 production which indicates that the qualified production was filmed
2 or otherwise produced in Nevada [;] or any alternative marketing
3 promotion acceptable to the Office; and
4     (h) [Meet any other requirements prescribed by regulation
5 pursuant to this section.] Enter into a written agreement with the
6 Office that requires the production company to transmit to each
7 contractor, vendor, personal service corporation or loan-out
8 company or other business engaged by the production company to
9 provide goods or perform services in an aggregate amount of at
10 least $10,000 or more in this State in connection with a qualified
11 production, not later than 30 calendar days after the production
12 company pays the contractor, vendor, personal service corporation
13 or loan-out company or other business, a notification that
14 includes:
15(1) A statement that Nevada imposes:
16(I) A tax on wages paid by certain employers pursuant to
17 chapters 363A and 363B of NRS; and
18(II) A commerce tax on certain business entities
19 pursuant to chapter 363C of NRS; and
20(2) Instructions for obtaining additional information from
21 the Department of Taxation regarding the collection and
22 remittance of taxes pursuant to chapters 363A, 363B and 363C of
23 NRS.
24     4. An application for a certificate of eligibility submitted
25 pursuant to subsection 3 must contain:
26     (a) A script, storyboard or synopsis of the qualified production;
27     (b) The names of the production company, producer, director
28 and proposed cast;
29     (c) An estimated timeline to complete the qualified production;
30     (d) [A summary of the budgeted expenditures for the entire
31 production, including projected expenditures to be incurred outside
32 of Nevada;] An estimate of the percentage of principal
33 photography days of the qualified production that will take place
34 in this State and outside this State;
35     (e) Details regarding the financing of the project, including,
36 without limitation, any information relating to a binding financing
37 commitment, loan application, commitment letter or investment
38 letter;
39     (f) An insurance certificate, binder or quote for general liability
40 insurance of $1,000,000 or more;
41     (g) The business address of the production company;
42     (h) Proof that the qualified production meets any applicable
43 requirements relating to workers’ compensation insurance; and
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                                 – 45 –
1     (i) [Proof that the production company has secured all licenses
2 and registrations required to do business in each location in this
3 State at which the qualified production will be produced; and
4     (j) Any other information required by regulations adopted by the
5 Office pursuant to subsection 8.] The workforce plan of the
6 production company that is required by paragraph (d) of
7 subsection 3.
8     5. [If the Office approves an application for a certificate of
9 eligibility for transferable tax credits pursuant to this section, the
10 Office shall immediately forward a copy of the certificate of
11 eligibility which identifies the estimated amount of the tax credits
12 available pursuant to NRS 360.7592 to:
13     (a) The applicant;
14     (b) The Department; and
15     (c) The Nevada Gaming Control Board.
16     6.] Within [60] 45 business days after receipt of a final
17 assessment of the workforce plan provided by a production
18 company pursuant to subparagraph (2) of paragraph (d) of
19 subsection 3, an audit provided by a production company pursuant
20 to paragraph (e) of subsection 3 and any other accountings or other
21 information required by the Office, the Office shall determine
22 whether to certify the audit and make a final determination of
23 whether a certificate of noninfrastructure transferable tax credits
24 will be issued. If the Office certifies the audit, determines that all
25 other requirements for the noninfrastructure transferable tax credits
26 have been met and determines that a certificate of noninfrastructure
27 transferable tax credits will be issued, the Office shall notify the
28 production company that the noninfrastructure transferable tax
29 credits will be issued.
30     6. Within [30] 90 days after the receipt of the notice, the
31 production company shall make an irrevocable declaration of the
32 amount of noninfrastructure transferable tax credits that will be
33 applied to each fee or tax set forth in subsection 1, thereby
34 accounting for all of the credits which will be issued [.] in relation
35 to the qualified production. Upon receipt of the declaration, the
36 Office shall [issue] :
37     (a) Determine an amount of money equal to 1 percentage point
38 of the percentage of qualified direct production expenditures used
39 to calculate the amount of film infrastructure transferable tax
40 credits that will be issued to the production company and cause
41 that amount of money to be transferred for credit to the Account
42 for Nevada Film, Media and Related Technology Education and
43 Vocational Training created by section 38 of this act; and
44     (b) Issue to the production company a certificate of
45 noninfrastructure transferable tax credits in the amount approved
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                                 – 46 –
1 by the Office for the fees or taxes included in the declaration of the
2 production company [.] , minus the amount of money transferred
3 pursuant to paragraph (a). The production company shall notify
4 the Office upon transferring any of the noninfrastructure
5 transferable tax credits. The Office shall notify the Department and
6 the Nevada Gaming Control Board of all noninfrastructure
7 transferable tax credits issued, segregated by each fee or tax set
8 forth in subsection 1, and the amount of any noninfrastructure
9 transferable tax credits transferred.
10     7. An applicant for noninfrastructure transferable tax credits
11 pursuant to this section shall, upon the request of the Executive
12 Director of the Office, furnish the Executive Director with copies of
13 all records necessary to verify that the applicant meets the
14 requirements of subsection 3.
15     8. The Office:
16     (a) Shall adopt regulations prescribing:
17(1) [Any additional requirements to receive transferable tax
18 credits;
19(2)] Any additional qualified expenditures or production
20 costs that may serve as the basis for noninfrastructure transferable
21 tax credits pursuant to NRS 360.7591;
22[(3) Any additional information that must be included with
23 an application pursuant to subsection 4;
24(4)] (2) The application review process;
25[(5) Any type of qualified]
26(3) That a production for which [, due to obscene or sexually
27 explicit material,] records are required by 18 U.S.C. § 2257 to be
28 maintained with respect to any performer in such production is not
29 eligible for noninfrastructure transferable tax credits; and
30[(6) The requirements for notice pursuant to NRS 360.7595;]
31(4) Any necessary provisions to ensure compliance with the
32 requirements of paragraph (d) of subsection 3 relating to
33 workforce plans; and
34     (b) May adopt any other regulations that are necessary to [carry
35 out] ensure that the provisions of NRS 360.758 to 360.7598,
36 inclusive [.] , are carried out in a manner that is reasonable and
37 customary within the industry for the production of qualified
38 productions.
39     9. The Nevada Tax Commission and the Nevada Gaming
40 Commission:
41     (a) Shall adopt regulations prescribing the manner in which
42 noninfrastructure transferable tax credits will be administered.
43     (b) May adopt any other regulations that are necessary to carry
44 out the functions performed by each entity pursuant to the
45 provisions of NRS 360.758 to 360.7598, inclusive.
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1     10. As used in this section:
2     (a) “Traditionally underrepresented group” means:
3(1) Women;
4(2) A racial or ethnic minority group;
5(3) A group of persons who identify as LGBTQ, which
6 means lesbian, gay, bisexual, transgender, queer, intersex or any
7 other nonheterosexual or noncisgender orientation or gender
8 identity or expression;
9(4) A group of persons with disabilities, as defined in 6
10 NRS 426.068;
11(5) Veterans;
12(6) Persons who are currently serving on active duty in the
13 Armed Forces of the United States; or
14(7) Persons who were previously incarcerated in a jail or
15 prison.
16     (b) “Veteran” means a person who has served in the Armed
17 Forces of the United States, a reserve component thereof or the
18 National Guard and was separated from such service under
19 conditions other than dishonorable.
20     Sec. 27. NRS 360.7591 is hereby amended to read as follows:
21     360.7591 1. [Qualified] Except as otherwise provided in this
22 subsection and subsection 3, qualified direct production
23 expenditures that may serve as a basis for noninfrastructure
24 transferable tax credits issued pursuant to NRS 360.759 must [be
25 for purchases,] :
26     (a) Be expenditures made during the period in which a
27 qualified production is produced;
28     (b) Be customary and reasonable;
29     (c) Relate to a category of qualified expenditures and costs
30 listed in subsection 2; and
31     (d) Be:
32(1) Purchases, rentals or leases of tangible personal property
33 or services from a Nevada business . [during the period in which a
34 qualified production is produced, must be customary and reasonable
35 and]
36(2) The payroll, including wages, salaries and fringe
37 benefits, for Nevada residents or other personnel for labor or
38 services provided in this State, as included in the calculation of the
39 amount of noninfrastructure transferable tax credits in
40 accordance with subsection 4. The payroll, including wages,
41 salaries and fringe benefits, for Nevada residents or other
42 personnel for labor or services provided outside this State must not
43 be a qualified direct production expenditure.
44(3) Compensation, including wages, salaries, fringe
45 benefits and other payments, paid to a bona fide third-party
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                                – 48 –
1 service provider, or to another person receiving the compensation
2 on behalf of the bona fide third-party service provider, for labor or
3 services provided in Nevada. Compensation, including wages,
4 salaries, fringe benefits and other payments, paid to a bona fide
5 third-party service provider, or to another person receiving the
6 compensation on behalf of the bona fide third-party service
7 provider, for labor or services provided outside Nevada must not
8 be a qualified direct production expenditure.
9     2. Expenditures or costs that may serve as a basis for
10 calculating noninfrastructure transferable tax credits must relate
11 to:
12     (a) Set construction and operation;
13     (b) Wardrobe and makeup;
14     (c) Photography, sound and lighting;
15     (d) Filming, film processing and film editing;
16     (e) The rental or leasing of facilities, equipment and vehicles;
17     (f) Food and lodging;
18     (g) Editing, sound mixing, special effects, visual effects and
19 other postproduction services;
20     (h) [The payroll for Nevada residents or other personnel who
21 provided services in this State;
22     (i)] Payment for goods or services provided by a Nevada
23 business;
24     [(j)] (i) The design, construction, improvement or repair of
25 property, infrastructure, equipment or a production or
26 postproduction facility;
27     [(k)] (j) State and local government taxes to the extent not
28 included as part of another cost reported pursuant to this section;
29     [(l) Fees paid to a producer who is a Nevada resident; and
30     (m)] or
31     (k) Any other transaction, service or activity authorized in
32 regulations adopted by the Office of Economic Development
33 pursuant to NRS 360.759.
34     [2.] 3. Expenditures and costs:
35     (a) Related to:
36(1) The acquisition, transfer or use of noninfrastructure
37 transferable tax credits;
38(2) Marketing and distribution;
39(3) Financing, depreciation and amortization;
40(4) The payment of any profits as a result of the qualified
41 production;
42(5) The payment for the cost of the audit required by NRS
43 360.759; and
44(6) The payment for any goods or services that are not
45 directly attributable to the qualified production;
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                                  – 49 –
1     (b) For which reimbursement is received, or for which
2 reimbursement is reasonably expected to be received;
3     (c) Which are paid to a joint venturer or a parent, subsidiary or
4 other affiliate of the production company, unless the amount paid
5 represents the fair market value , which may be represented by a
6 rate sheet, of the purchase, rental or lease of the property or services
7 for which payment is made; or
8     (d) [Which provide a pass-through benefit to a person who is not
9 a Nevada resident; or
10     (e)] Which have been previously claimed as a basis for
11 noninfrastructure transferable tax credits [,] issued pursuant to
12 NRS 360.759 or film infrastructure transferable tax credits issued
13 pursuant to section 11 of this act,
14  are not qualified direct production expenditures and are not
15 eligible to serve as a basis for transferable tax credits issued
16 pursuant to NRS 360.759.
17     [3.] 4. If any tangible personal property is acquired by a
18 Nevada business from a vendor outside this State for immediate
19 resale, rental or lease to a production company that produces a
20 qualified production, expenditures incurred by the production
21 company for the purchase, rental or lease of the property are
22 qualified direct production expenditures only if:
23     (a) The Nevada business regularly deals in property of that kind;
24     (b) The expenditures are otherwise qualified direct production
25 expenditures under the provisions of this section; and
26     (c) Not more than 50 percent of the property purchased, rented
27 or leased by the production company for the qualified production is
28 acquired and purchased, rented or leased in the manner described in
29 this subsection. In making the calculation required by this
30 paragraph, the cost of any property that remains an asset of the
31 Nevada business after production of the qualified production has
32 ended must not be included in the calculation as property purchased,
33 rented or leased in the manner described in this subsection.
34     [4.] 5. If any tangible personal property is acquired by the
35 production company as an asset, the calculation of the costs of the
36 tangible personal property that constitute a qualified direct
37 production expenditure must be performed in the manner prescribed
38 by the Office [of Economic Development] by regulation.
39     6. As used in this section:
40     (a) “Bona fide third-party service provider” means a qualified
41 entity, a qualified individual or any other person determined by
42 the Office to be providing necessary and appropriate labor or
43 services directly related to the qualified production.
44     (b) “Fringe benefits” means employee expenses paid by an
45 employer for the use of the employee’s services, including, without
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                                – 50 –
1 limitation, payments made to a governmental entity, union dues,
2 health insurance premiums, payments to a pension plan and
3 payments for workers’ compensation insurance.
4     (c) “Qualified entity” means an entity that is:
5(1) A personal service corporation, as defined in 26 U.S.C.
6 § 269A(b)(1), a payroll services corporation or any entity receiving
7 payments for services performed in this State by a qualified
8 individual; and
9(2) Registered to conduct business pursuant to the laws of
10 this State.
11     (d) “Qualified individual” means any natural person who
12 performs services during the production period in an activity
13 related to the production of a qualified production. The term does
14 not include:
15(1) Any natural person related to the production company
16 or an employee of the production company, as described in
17 subparagraph (A), (B) or (C) of 26 U.S.C. § 51(i)(1).
18(2) Any 5-percent owner, as defined in 26 U.S.C. §
19 416(i)(1)(B), of the production company.
20     Sec. 28. NRS 360.7592 is hereby amended to read as follows:
21     360.7592 1. Except as otherwise provided in [subsection 4]
22 subsections 3 and 5 and NRS 360.7593 and 360.7594, the base
23 amount of noninfrastructure transferable tax credits issued to an
24 eligible production company pursuant to NRS 360.759 :
25     (a) For an eligible production company that submitted the
26 application for the certificate of eligibility for the
27 noninfrastructure transferable tax credits before July 1, 2029, or
28 on or after July 1, 2044, must equal 15 percent of the qualified
29 direct production expenditures.
30     (b) For an eligible production company that submitted the
31 application for the certificate of eligibility for the
32 noninfrastructure transferable tax credits on or after July 1, 2029,
33 and before July 1, 2044, must equal 30 percent of the qualified
34 direct production expenditures.
35     2. Except as otherwise provided in subsections [3] 4 and [4] 5
36 and NRS 360.7594, if an eligible production company submitted
37 the application for the certificate of eligibility for
38 noninfrastructure transferable tax credits pursuant to NRS
39 360.759 before July 1, 2029, or on or after July 1, 2044, in addition
40 to the base amount calculated pursuant to paragraph (a) of
41 subsection 1, the noninfrastructure transferable tax credits issued
42 to [an] the eligible production company [pursuant to NRS 360.759]
43 must include credits in an amount equal to [:
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1     (a) An additional 5 percent of the qualified direct production
2 expenditures if more than 50 percent of the below-the-line personnel
3 of the qualified production are Nevada residents; and
4     (b) An] an additional 5 percent of the qualified direct production
5 expenditures if more than 50 percent of the filming days of the
6 qualified production occurred in a county in this State in which, in
7 each of the 2 years immediately preceding the date of application,
8 qualified productions incurred less than $10,000,000 of qualified
9 direct production expenditures.
10     3. [For the purposes of paragraph (a) of subsection 2:
11     (a) Except as otherwise provided in paragraph (b) of this
12 subsection, the percentage of the below-the-line personnel who are
13 Nevada residents must be determined by dividing the number of
14 workdays worked by Nevada residents by the number of workdays
15 worked by all below-the-line personnel.
16     (b) Any work performed by an extra must not be considered in
17 determining the percentage of the below-the-line personnel who are
18 Nevada residents.
19     4. The] Except as otherwise provided in subsections 4 and 5
20 and NRS 360.7594, if an eligible production company submitted
21 the application for the certificate of eligibility for
22 noninfrastructure transferable tax credits pursuant to NRS
23 360.759 on or after the date on which the Office adopts the
24 regulations required by section 11 of this act and before July 1,
25 2044, the Office shall not issue any noninfrastructure transferable
26 tax credits to the production company for the qualified production
27 if the final assessment of the workforce plan submitted by the
28 production company for the qualified production pursuant to
29 paragraph (d) of subsection 3 of NRS 360.759 does not include
30 documentation that the diversity goals set forth in subparagraph
31 (2) of paragraph (d) of subsection 3 of NRS 360.759 were met.
32     4. The Executive Director of the Office shall waive a
33 reduction in the cumulative amount of noninfrastructure
34 transferable tax credits required pursuant to subsection 3 upon
35 written proof to the Executive Director that the production
36 company made a good faith effort to meet the requirements of that
37 subsection and there is an insufficient number of persons
38 available and qualified to meet the requirements.
39     5. Except as otherwise provided in subsection 6, the
40 Executive Director of the Office may:
41     (a) Reduce the cumulative amount of noninfrastructure
42 transferable tax credits that are calculated pursuant to this section by
43 an amount equal to any damages incurred by the State or any
44 political subdivision of the State as a result of a qualified production
45 that is produced in this State; or
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1    (b) Withhold the noninfrastructure transferable tax credits, in
2 whole or in part:
3(1) Until any pending legal action in this State against a
4 production company or involving a qualified production is resolved.
5(2) If a production company violates any state or local law.
6(3) If a production company is found to have knowingly
7 submitted any false statement, representation or certification in any
8 document submitted for the purpose of obtaining noninfrastructure
9 transferable tax credits.
10    6. Before taking any action authorized by subsection 5, the
11 Executive Director of the Office shall:
12    (a) Consider any documentation submitted by the production
13 company related to the action under consideration; and
14    (b) Make the following determinations:
15(1) That good cause exists to take such action;
16(2) That the action is reasonable based on the
17 circumstances of the underlying incident on which the reduction
18 or withholding of noninfrastructure transferable tax credits
19 authorized pursuant to subsection 5 is based; and
20(3) The amount of any reduction or withholding of
21 noninfrastructure transferable tax credits authorized pursuant to
22 subsection 5 is commensurate with severity of the underlying
23 incident on which the reduction or withholding is based.
24    Sec. 29. NRS 360.7593 is hereby amended to read as follows:
25    360.7593 1. [In] For an eligible production company that
26 submitted the application for the certificate of eligibility for the
27 noninfrastructure transferable tax credits before July 1, 2029, or
28 on or after July 1, 2044, in calculating the base amount of
29 noninfrastructure transferable tax credits pursuant to subsection 1
30 of NRS 360.7592:
31    (a) Wages and salaries, including fringe benefits, paid to above-
32 the-line personnel who are not Nevada residents must be included in
33 the calculation at a rate of 12 percent.
34    (b) Wages and salaries, including fringe benefits, paid to below-
35 the-line personnel who are not Nevada residents [:
36(1) For the period beginning January 1, 2014, and ending
37 December 31, 2014, must be included in the calculation at a rate of
38 12 percent.
39(2) For the period beginning January 1, 2015, and ending
40 December 31, 2015, must be included in the calculation at a rate of
41 10 percent.
42(3) For the period beginning January 1, 2016, and ending
43 December 31, 2016, must be included in the calculation at a rate of
44 8 percent.
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1(4) For the period beginning January 1, 2017,] must not be
2 included in the calculation.
3    2. As used in this section, “fringe benefits” means employee
4 expenses paid by an employer for the use of a person’s services,
5 including, without limitation, payments made to a governmental
6 entity, union dues, health insurance premiums, payments to a
7 pension plan and payments for workers’ compensation insurance.
8    Sec. 30. NRS 360.7594 is hereby amended to read as follows:
9    360.7594 1. Except as otherwise provided in this subsection,
10 the Office [of Economic Development] shall not approve any
11 application for a certificate of eligibility for noninfrastructure
12 transferable tax credits submitted pursuant to NRS 360.759 if
13 approval of the application would cause the total amount of
14 noninfrastructure transferable tax credits approved pursuant to
15 NRS 360.759 for each [fiscal] :
16    (a) Fiscal year commencing before July 1, 2029, or on or after
17 July 1, 2044, to exceed the sum of $10,000,000. [Any] Except as
18 otherwise provided in this paragraph, any portion of the
19 $10,000,000 per fiscal year for which noninfrastructure
20 transferable tax credits have not previously been approved by the
21 Office under an application for a certificate of eligibility for
22 noninfrastructure transferable tax credits submitted pursuant to
23 NRS 360.759 may be carried forward and made available for
24 approval during the next or any future fiscal year.
25 Noninfrastructure transferable tax credits that are available for
26 approval for a fiscal year commencing before July 1, 2029, but
27 have not been approved for a fiscal year commencing before
28 July 1, 2029, must not be carried forward and made available for
29 approval during any fiscal year commencing on or after July 1,
30 2029.
31    (b) Fiscal year commencing on or after July 1, 2029, and
32 before July 1, 2044, to exceed the sum of $25,000,000. An amount
33 not to exceed 50 percent of the $25,000,000 per fiscal year for
34 which noninfrastructure transferable tax credits have not
35 previously been approved by the Office under an application for a
36 certificate of eligibility for noninfrastructure transferable tax
37 credits submitted pursuant to NRS 360.759 may be carried
38 forward and made available for approval during the next or any
39 future fiscal year.
40    2. [The] Except as otherwise provided in this section, if the
41 Office approves an application for a certificate of eligibility
42 pursuant to NRS 360.759, the Office shall assign the amount of
43 noninfrastructure transferable tax credits identified under the
44 certificate of eligibility to the fiscal year in which the application
45 for the certificate of eligibility is approved.
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1     3. Except as otherwise provided in subsection 1, an amount of
2 noninfrastructure transferable tax credits approved by the Office
3 under a certificate of eligibility issued to a production company
4 pursuant to NRS 360.759 that exceeds the amount of
5 noninfrastructure transferable tax credits approved by the Office
6 under a certificate of noninfrastructure transferable tax credits
7 issued to the production company pursuant to NRS 360.759 may
8 be added to the amount made available for approval during
9 subsequent fiscal years.
10     4. For an eligible production company that submitted the
11 application for the certificate of eligibility for the
12 noninfrastructure transferable tax credits before July 1, 2029, or
13 on or after July 1, 2044, the noninfrastructure transferable tax
14 credits issued to any production company for any qualified
15 production pursuant to NRS 360.759:
16     (a) Must not exceed a total amount of $6,000,000; and
17     (b) Expire [4] at the end of the calendar year that is 6 years
18 after the date on which the noninfrastructure transferable tax
19 credits are issued to the production company.
20     [3.] 5. For [the purposes of calculating qualified direct
21 production expenditures:
22     (a) The compensation payable to all producers who are Nevada
23 residents must not exceed 10 percent of the portion of the total
24 budget of the qualified production that was expended in or
25 attributable to any expenses incurred in this State.
26     (b) The compensation payable to all producers who are not
27 Nevada residents must not exceed 5 percent of the portion of the
28 total budget of the qualified production that was expended in or
29 attributable to any expenses incurred in this State.
30     (c) The compensation payable to any employee, independent
31 contractor or any other person paid a wage or salary as
32 compensation for providing labor services on the production of the
33 qualified production must not exceed $750,000.] an eligible
34 production company that submitted the application for the
35 certificate of eligibility for the noninfrastructure transferable tax
36 credits on or after July 1, 2029, and before July 1, 2044, the
37 noninfrastructure transferable tax credits issued to the production
38 company for a qualified production pursuant to NRS 360.759:
39     (a) Must not exceed a total of $7,000,000; and
40     (b) Expire at the end of the calendar year that is 6 years after
41 the date on which the noninfrastructure transferable tax credits
42 are issued to the production company.
43     Sec. 31. NRS 360.7595 is hereby amended to read as follows:
44     360.7595 1. [If the Office of Economic Development
45 receives an application for transferable tax credits pursuant to
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1 NRS 360.759, the Office shall, not later than 10 days before a
2 hearing on the application, provide notice of the hearing to:
3    (a) The applicant;
4    (b) The Department; and
5    (c) The Nevada Gaming Control Board.
6    2. The notice required by this section must set forth the date,
7 time and location of the hearing on the application. The date of the
8 hearing must be not later than 60 days after the Office receives the
9 completed application.
10    3. The Office shall issue a decision on the application not later
11 than 30 days after the conclusion of the hearing on the application.
12    4.] Except as otherwise provided in this subsection, if [the] an
13 application for a certificate of eligibility for noninfrastructure
14 transferable tax credits is approved [,] pursuant to NRS 360.759,
15 principal photography of the qualified production must begin not
16 more than 90 days after the date on which the decision on the
17 application is issued. The Office : [of Economic Development:]
18    (a) Shall prescribe by regulation the procedure for determining
19 the date of commencement of qualified productions that do not
20 include photography for the purposes of this section.
21    (b) May extend by not more than 90 days the period otherwise
22 prescribed by this subsection [.] , except that in the case of a force
23 majeure, the Office may extend the period for more than 90 days.
24    [5.] 2. A production company that produces a qualified
25 production shall submit the final assessment of the workforce plan,
26 the audit required by NRS 360.759 and all other required
27 information to the Office and the Department within the time
28 required by paragraph (d) or (e) of subsection 3 of NRS 360.759 [.] ,
29 as applicable. Production of the qualified production must be
30 completed within 18 months after the date of commencement of
31 principal photography [.] , except that the Office may extend this
32 period for completion of the qualified production by not more than
33 6 months. If the Office or the Department determines that
34 information submitted pursuant to this subsection is incomplete, the
35 production company shall, not later than 30 days after receiving
36 notice that the information is incomplete, provide to the Office or
37 the Department, as applicable, all additional information required by
38 the Office or the Department.
39    [6.] 3. The Office shall give priority to the approval and
40 processing of an application relating to a qualified production that
41 promotes tourism in the State of Nevada.
42    Sec. 32. NRS 360.7598 is hereby amended to read as follows:
43    360.7598 The Office of Economic Development shall, on or
44 before [October] December 1 of each even-numbered year, prepare
45 and submit to the Governor and to the Director of the Legislative
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1 Counsel Bureau for transmittal to the Legislature [an annual] a
2 report which includes, for the immediately preceding fiscal year [:]
3 and cumulatively for the period beginning on the effective date of
4 this act and ending on the last day of the immediately preceding
5 fiscal year:
6     1. The number of applications submitted for a certificate of
7 eligibility for noninfrastructure transferable tax credits pursuant to
8 NRS 360.759;
9     2. The number of qualified productions for which
10 noninfrastructure transferable tax credits were approved;
11     3. The amount of noninfrastructure transferable tax credits
12 approved;
13     4. The amount of noninfrastructure transferable tax credits
14 used;
15     5. The amount of noninfrastructure transferable tax credits
16 transferred;
17     6. The amount of noninfrastructure transferable tax credits
18 taken against each allowable fee or tax, including the actual amount
19 used and outstanding, in total and for each qualified production;
20     7. The [total] aggregate amount of the qualified direct
21 production expenditures incurred by [each] qualified [production]
22 productions and the portion of those expenditures that were incurred
23 in Nevada;
24     8. The aggregate number of persons in Nevada employed by
25 [each] qualified [production and] productions, the aggregate
26 amount of wages paid to those persons [;] and aggregated
27 demographic information concerning those persons; [and]
28     9. The number of persons employed by each qualified
29 production who were paid compensation of more than $1,000,000
30 for labor or services provided for the qualified production and the
31 total number of persons employed by each qualified production
32 who were paid more than $1,000,000 for labor or services provided
33 for the qualified production;
34     10. For each qualified production and cumulatively for all
35 qualified productions, the percentage of below-the-line personnel,
36 by occupation and in aggregate, providing labor or services who
37 were Nevada residents, calculated by dividing the number of
38 workdays worked by Nevada residents who were below-the-line
39 personnel, excluding background actors, by the number of
40 workdays worked by all below-the-line personnel, excluding
41 background actors;
42     11. For each qualified production and cumulatively for all
43 qualified productions, the percentage of below-the-line personnel,
44 by occupation and in aggregate, providing labor or services who
45 were Nevada residents, calculated by dividing the wages and
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1 salaries paid to Nevada residents who were below-the-line
2 personnel, excluding background actors, for labor or services
3 provided in this State by the total wages and salaries paid to all
4 below-the-line personnel, excluding background actors;
5     12. For each qualified production and cumulatively for all
6 qualified productions, the percentage of above-the-line personnel,
7 by occupation and in aggregate, providing labor or services who
8 were Nevada residents, calculated by dividing the number of
9 workdays worked by Nevada residents who were above-the-line
10 personnel by the number of workdays worked by all above-the-line
11 personnel;
12     13. For each qualified production and cumulatively for all
13 qualified productions, the percentage of above-the-line personnel,
14 by occupation and in aggregate, providing labor or services who
15 were Nevada residents, calculated by dividing the wages and
16 salaries paid to Nevada residents who were above-the-line
17 personnel for labor or services provided in this State by the total
18 wages and salaries paid to all above-the-line personnel;
19     14. For each qualified production and cumulatively for all
20 qualified productions, the percentage of total compensation paid
21 to above-the-line personnel, by occupation and in aggregate, and
22 the percentage of total compensation paid to below-the-line
23 personnel, by occupation and in aggregate; and
24     15. The period during which each qualified production was in
25 Nevada and employed persons in Nevada.
26     Sec. 33. Chapter 231 of NRS is hereby amended by adding
27 thereto the provisions set forth as sections 34 to 40, inclusive, of this
28 act.
29     Sec. 34. As used in sections 34 to 40, inclusive, of this act,
30 unless the context otherwise requires, the words and terms defined
31 in sections 35, 36 and 37 of this act have the meanings ascribed to
32 them in those sections.
33     Sec. 35. “Account” means the Account for Nevada Film,
34 Media and Related Technology Education and Vocational
35 Training created by section 38 of this act.
36     Sec. 36. “Board” means the Board for Nevada Film, Media
37 and Related Technology Education and Vocational Training
38 created by section 39 of this act.
39     Sec. 37. “Nevada Partners Vocational Training Studio” has
40 the meaning ascribed to it in section 7 of this act.
41     Sec. 38. 1. The Account for Nevada Film, Media and
42 Related Technology Education and Vocational Training is hereby
43 created in the State General Fund. The Executive Director of the
44 Office of Economic Development, at the direction of the Board,
45 shall administer the Account.
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1     2. The Executive Director may apply for and accept gifts,
2 grants, bequests and donations from any source for deposit in the
3 Account.
4     3. The Account consists of:
5     (a) Money transferred to the Account pursuant to NRS
6 360.759 and section 11 of this act.
7     (b) Any direct legislative appropriations to the Account.
8     (c) Any gifts, grants, bequests and donations made to the
9 Account.
10     (d) Interest and income earned on money in the Account.
11     4. The interest and income earned on the money in the
12 Account, after deducting any applicable charges, must be credited
13 to the Account.
14     5. Any money remaining in the Account at the end of the
15 fiscal year does not revert to the State General Fund, and the
16 balance in the Account must be carried forward to the next fiscal
17 year.
18     6. Money in the Account must be used by the Office to make
19 grants to any institution within the Nevada System of Higher
20 Education, a state or local agency, a school district, a charter
21 school, a vocational trade school, a nonprofit organization, a labor
22 organization or a private postsecondary educational institution
23 that provides a program of workforce development for the
24 production of qualified productions in this State. Thirty percent of
25 the money which is distributed from the Account in the form of
26 grants must be allocated to the Nevada Partners Vocational
27 Training Studio for the operation and overhead costs of the
28 Nevada Partners Vocational Training Studio. Seventy percent of
29 the money which is distributed from the Account in the form of
30 grants must be allocated to educational and vocational training
31 organizations pursuant to section 40 of this act for the purpose of
32 providing programs of workforce development for the production
33 of qualified productions in this State.
34     7. As used in this section, “qualified production” has the
35 meaning ascribed to it in NRS 360.7586.
36     Sec. 39. 1. There is hereby created the Board for Nevada
37 Film, Media and Related Technology Education and Vocational
38 Training within the Office of Economic Development in the Office
39 of the Governor, consisting of the following voting members:
40     (a) One member appointed by the Governor;
41     (b) One member, who must not be a Legislator, appointed by
42 the Majority Leader of the Senate;
43     (c) One member, who must not be a Legislator, appointed by
44 the Speaker of the Assembly;
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1     (d) One member, who must not be a Legislator, appointed by
2 the Minority Leader of the Senate;
3     (e) One member, who must not be a Legislator, appointed by
4 the Minority Leader of the Assembly;
5     (f) Two members appointed by the Governor from nominees
6 selected by the lead participant in the Summerlin Production
7 Studios Project;
8     (g) One member appointed by the Governor from a nominee
9 selected by the Southern Nevada Enterprise Community Board to
10 represent the interests of the Nevada Partners Vocational Training
11 Studio;
12     (h) One member appointed by the Board of Regents of the
13 University of Nevada;
14     (i) The President of the University of Nevada, Las Vegas, or
15 his or her designee; and
16     (j) The President of the University of Nevada, Reno, or his or
17 her designee.
18     2. In appointing members to the Board pursuant to
19 subsection 1, the appointing authorities set forth in that subsection
20 shall coordinate to ensure that both the public and private sectors
21 are represented on the Board.
22     3. The members appointed pursuant to paragraphs (a), (c),
23 (e) and (g) of subsection 1, and one member appointed pursuant to
24 paragraph (f) of subsection 1, must be appointed to an initial term
25 of 2 years commencing on January 1, 2028, and the members
26 appointed pursuant to paragraphs (b), (d) and (h) of subsection 1,
27 and one member appointed pursuant to paragraph (f) of
28 subsection 1, must be appointed to an initial term of 4 years
29 commencing on January 1, 2028. After the initial terms, each
30 appointed member shall serve a term of 4 years. Each appointed
31 member serves at the pleasure of the person appointing that
32 member pursuant to subsection 1. If, for any reason, a vacancy
33 occurs during the term of an appointed member, the person who is
34 responsible for making the appointment pursuant to subsection 1
35 shall appoint a replacement qualified pursuant to that subsection
36 to serve for the remainder of the unexpired term. Each appointed
37 member may serve not more than three consecutive full terms.
38     4. At the first meeting of each fiscal year, the Board shall
39 elect from among its members a Chair and a Vice Chair. The
40 Executive Director of the Office of Economic Development shall
41 serve as the nonvoting Secretary of the Board.
42     5. A majority of the voting members of the Board constitutes
43 a quorum, and the affirmative vote of a majority of the voting
44 members of the Board is required to exercise any power conferred
45 on the Board.
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1     6. The Board shall meet at least twice each calendar year but
2 may meet more often at the call of the Chair or a majority of the
3 voting members of the Board.
4     7. The members of the Board serve without compensation but
5 are entitled to receive the per diem allowance and travel expenses
6 provided for state officers and employees generally while engaged
7 in the official business of the Board.
8     8. A member of the Board who is an officer or employee of
9 this State or a political subdivision of this State must be relieved
10 from duties without loss of regular compensation so that the
11 officer or employee may prepare for and attend meetings of the
12 Board and perform any work necessary to carry out the duties of
13 the Board in the most timely manner practicable. A state agency or
14 political subdivision of this State shall not require an officer or
15 employee who is a member of the Board to make up the time the
16 officer or employee is absent from work to carry out duties as a
17 member of the Board or use annual vacation or compensatory
18 time for the absence.
19     9. As used in this section:
20     (a) “Southern Nevada Enterprise Community Board” means
21 the Southern Nevada Enterprise Community Board created by
22 section 8 of the Southern Nevada Enterprise Community
23 Infrastructure Improvement Act.
24     (b) “Summerlin Production Studios Project” has the meaning
25 ascribed to it in section 9 of this act.
26     Sec. 40. 1. The Board shall establish:
27     (a) The procedures for a person or entity to apply for a grant
28 of money from the Account;
29     (b) The criteria to be used to determine whether to approve an
30 application for a grant from the Account to an applicant; and
31     (c) The requirements for reports by recipients of grants from
32 the Account concerning the expenditures made from the grant, the
33 outcomes of the programs supported by the grant, demographic
34 data concerning the participants in the programs supported by the
35 grant and any other information deemed necessary by the Board.
36 The Board shall provide to the Office a compilation of the
37 information provided in reports made by recipients pursuant to
38 this paragraph.
39     2. The Executive Director of the Office of Economic
40 Development may provide advice and recommendations regarding
41 the procedures, criteria and requirements established by the Board
42 pursuant to subsection 1.
43     3. The Office shall not make a grant of money from the
44 Account unless the Board has approved the application for the
45 grant.
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1     Sec. 41. The provisions of subsection 1 of NRS 218D.380 do
2 not apply to any provision of this act which adds or revises a
3 requirement to submit a report to the Legislature.
4     Sec. 42. As soon as practicable after entering into a
5 development agreement that satisfies the requirements of section 10
6 of this act with the lead participant of the Summerlin Production
7 Studios Project described in section 9 of this act, the Executive
8 Director of the Office of Economic Development shall notify the
9 Governor and the Director of the Legislative Counsel Bureau of that
10 fact.
11     Sec. 43. The Office of Economic Development, the Nevada
12 Gaming Commission and the Nevada Tax Commission shall each
13 adopt such regulations as are respectively required to implement the
14 provisions of this act on or before December 31, 2026.
15     Sec. 44. The amendatory provisions of sections 21 to 33,
16 inclusive, of this act do not apply to any qualified production for
17 which an application for a certificate of eligibility for
18 noninfrastructure transferable tax credits is approved pursuant to
19 NRS 360.759 before January 1, 2027.
20     Sec. 45. The Legislative Counsel shall:
21     1. In preparing the Nevada Revised Statutes, use the authority
22 set forth in subsection 10 of NRS 220.120 to substitute
23 appropriately the term “noninfrastructure transferable tax credits” in
24 NRS 360.758 to 360.7598, inclusive, for the term “transferable tax
25 credits” as previously used in those sections.
26     2. In preparing supplements to the Nevada Administrative
27 Code, substitute appropriately the term “noninfrastructure
28 transferable tax credits” in NAC 360.800 to 360.865, inclusive, for
29 the term “transferable tax credits” as previously used in those
30 sections.
31     Sec. 46. If any provision of this act, or the application thereof
32 to any person, thing or circumstance is held invalid, such invalidity
33 shall not affect the provisions or application of this act which can be
34 given effect without the invalid provision or application, and to this
35 end the provisions of this act are declared to be severable.
36     Sec. 47. Notwithstanding the provisions of NRS 218D.430 and
37 218D.435, a committee may vote on this act before the expiration of
38 the period prescribed for the return of a fiscal note in NRS
39 218D.475. This section applies retroactively from and after
40 November 13, 2025.
41     Sec. 48. 1. This section becomes effective upon passage and
42 approval.
43     2. Sections 1 to 20, inclusive, and 33 to 47, inclusive, of this
44 act become effective:
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1     (a) Upon passage and approval for the purpose of adopting
2 regulations and performing any other preparatory administrative
3 tasks. For the purposes of this paragraph, “preparatory
4 administrative tasks” include, without limitation, the negotiation,
5 preparation and execution of a development agreement that satisfies
6 the requirements set forth in section 10 of this act and notifying the
7 Governor and the Director of the Legislative Counsel Bureau that
8 the Office of Economic Development has entered into such an
9 agreement.
10     (b) For all other purposes, on the date on which the Executive
11 Director of the Office of Economic Development notifies the
12 Governor and the Director of the Legislative Counsel Bureau
13 pursuant to section 42 of this act that the Office has entered into a
14 development agreement that satisfies the requirements of section 10
15 of this act with the lead participant of the Project described in
16 section 9 of this act.
17     3. Sections 21 to 32, inclusive, of this act become effective:
18     (a) Upon passage and approval for the purpose of adopting
19 regulations and performing any other preparatory administrative
20 tasks.
21     (b) For all other purposes, on January 1, 2027, if and only if the
22 Executive Director of the Office of Economic Development notifies
23 the Governor and the Director of the Legislative Counsel Bureau
24 that the Office has entered into a development agreement that
25 satisfies the requirements of section 10 of this act with the lead
26 participant of the Project described in section 9 of this act.
27     4. If sections 1 to 17, inclusive, and sections 19 to 46,
28 inclusive, of this act become effective pursuant to this section, those
29 sections expire by limitation on June 30, 2050.
                                  H
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