This is a summary of our findings while reviewing the current draft bill of the Nevada Assembly Bill 238: Enacts the Nevada Studio Infrastructure Jobs and Workforce Training Act. (BDR S-63)
While we have posted our findings on a detailed thread on X, they may have been too lengthy for the system as it disappears and reappears on our page so we will collect our statements here:
Review
We have read through the new AB238 Film Tax bill draft by @SonyPictures for Summerlin Studios & sadly it offers no incentives for Babs Do Studios or other studios to build in Nevada. This is disappointing on many levels & we hope that Sony can make swift amendments! More below:
– The AB238 bill draft has unnecessary and discriminatory DEI diversity business preferences and direct forced hiring requirements throughout its text in order to be even considered for state film production tax credit participation and qualification, including for when hiring for specific positions, paid internship preferences, and additional grant program participation. This is despite general hiring practices stating that gender, race, sexual preference, economic status, politics, and other irrelevant attributes are not supposed to be a factor for anything when hiring an individual for a business position and the fact that DEI hiring practices, departments, and programs are currently being actively removed across the country and within the entertainment industry (Sec 7, 10, 12, 19, 21, 33.4a-c). These entries, paragraphs, and sections should be removed completely as they interfere with the universal openness and utility of the funds for the film tax credit program which should be open for all tax-paying Nevada citizens and Nevada-based productions regardless of the genetic makeup or “equity” basis of its workers and the only production preference should be the required hiring percentage for Nevada-based workers. This bill should be about providing new jobs, industry, and infrastructure to solely benefit Nevada’s economy and to allow Nevada to produce new forms of entertainment for all audiences with no political, social, or cultural agendas or bias present or adopted within its core legislation.
– There is also overall key preference for productions made at Summerlin Studios and by production companies within Summerlin Studios, immediately creating a business conflict if any other studio or production company wants to compete for equal incentives in the state. Summerlin Studios should be defined as the main example development of AB238 with its own incentives clearly defined as they relate to the bill with the acknowledgement of its development through the bill’s passing. Additional potential studio developments should be immediately included with their own defined share of tax incentives once they seek to build in Nevada. Nevada’s Film Tax Incentive program should not be so singularly intertwined with one studio development as all Nevada artists and potential studio developers should be included within a state’s film tax incentive program, especially if it seeks to build new film studios like our Nevada-born Babs Do Studios development and Warner Bros. who can be amongst the first Las Vegas film studios to help augment the economic impact and production capacity of Nevada. Future studios could include Netflix, Amazon Studios, Disney, Paramount, Universal, and other potential Nevada-born studio developments as long as they are included without the potential complexity of having to reinvent Nevada’s film tax incentive program to suit every new individual studio.
– The studio building requirements are uniquely formatted for Summerlin Studios and few will be able to match or meet these requirements even if the bill were opened up for all studio developments. For example, Babs Do Studios can be made far more economically and at faster build rates and with a focus on streamlined in-house production budgets that will consistently produce high quality product. However, the minimum total studio development spend of $400 Million Dollars for one development is rather extreme when for $300 Million Dollars with Babs Do Studios we can build multiple studio sites and facilities across Las Vegas, Reno, and Carson City. This spending requirement should be reduced or removed completely as it interferes with Nevada business development in general for when someone wants to take a new age approach that is more economical and efficient or for when someone wants to open a smaller studio or repurpose a pre-existing property into a movie studio as projects in other states are building their film and media infrastructure with. Going forward, while accounting for new technologies and regular innovation, film studio developments don’t have to cost the same to build so the legislation should reflect that reality by not directly or indirectly mandating a set cost requirement for the state.
– The bill also mentions the Nevada Gaming Control Board and “Gaming License”, so does this mean the studio will have slot machines and other casino games? Perhaps they are simply being utilized to manage the program without any other pre-existing agency or department. Maybe necessary to produce video games? Pay-to-play mobile applications? The reason for their involvement should be noted in the appendices for anyone unfamiliar with the film tax incentive program if it already incorporates the Nevada Gaming Control Board. Otherwise, why are they included in a film studio development?
– Now it does mention a mechanic of a production company being located at Summerlin Studios but will there be enough room and development to support more than a few companies? If Babs Do Productions wanted to work at Summerlin Studios, what is the entry process like? Fees? Any production funding assistance or other support? Benefits? Etc.? Again, it isn’t stated in the bill or with previous announced plans and refers only to “Summerlin Studios” and “Production Companies at Summerlin Studios”, so how will this studio support Nevada filmmakers and their productions?
– The minimum production spend is still $500,000, many modern feature films can be made for less than $100,000, even Hollywood studios are cutting production spending, so the price to entry for production incentives in Nevada is still an issue for independents and, essentially, Nevada residents looking to start production with new film and media infrastructure developments. This is especially true as technology is becoming less expensive with 32-core computers able to be purchased for around $2,500, 12K Full Frame Digital Cinema Cameras being available for $8,000, and industry standard editing, sound, and post-production software being available for a small monthly fee. Even $100,000 is a lot for modern independent filmmakers to handle and because the incentives are authorized on a case by case basis, there is no need to worry to set such a high production spend when the goal is to spur new consistent film and media production in Nevada.
– If I am reading right, unless Summerlin Studios is built by July 1, 2028, no one will receive the new program’s film tax credits outlined in the bill beyond that point. Once again, this bill is showing strict preference for Summerlin Studios and no one else in Nevada and worse, puts a delay and possible total end date on Nevada’s film and media production capability until July 1, 2028. (Sec 13.3) With the studio construction taking until at least 2028 to finish, once again, faster to build developments like Babs Do Studios could help provide a quicker economic impact while Summerlin Studios is constructed and with film tax incentives starting on October 1, 2025, that sets a great building timeframe for Babs Do Studios to build up Nevada’s production space in anticipation of Summerlin Studios and the upgraded film tax incentives its completion would bring. However, by directly tying the entire advancement of the program to the completion of Summerlin Studios, this would set a terrible stop to not only the business of Babs Do Studios but also Nevada’s film and media production. This restriction should be changed to affect Summerlin Studios’ development and leave the advancement of the program on its own path with, once again, other studio developments being considered in the bill.
– Unrelated to the bill but could be added for innovation by perhaps adding a rule for exception in the case of large scale production that can exceed 18 months of principle photography and/or post-production, like “The Lord of the Rings” Trilogy and James Cameron’s “Avatar” series of films. Also, animated film projects that could exceed 18 months of production.
– Sec 16.11 is great but why not open the incentives for other studios and production companies in the first place with AB238? Summerlin Studios can be the initial focus within the bill without limiting incentives for other studio developments. Same for 16.12, have incentives also for more training studios and facilities. The studio incentive rollout can start immediately or when the production incentives begin on October 1, 2025. Please, consider this for the universal sake of all Nevadans and studio developers!
– Sec 31 should also include the option for grants and funding for film and media infrastructure projects that do not fall within the strict guidelines of the current bill for the sake of future film and media developments that include as of yet unknown and unforeseen entertainment experiences, media formats, and methods of exhibition and interaction.
We cannot support the AB238 bill as it currently is for the sake of fellow Nevada artists & citizens, again, we hope that Sony can amend the bill with these changes and notes. If they do, they will have a solid universal film tax incentive bill for Nevada!
For all involved, we ask that these AB238 bill notes be taken into consideration for the sake of NV artists, citizens, & other studio developers, including Babs Do Studios!
@JosephMLombardo @sandra4nv @PictureThisNV @DavidOReillyHH @DiversifyNevada @drrobintitus @NVDemsChair
If we have possibly misread or misunderstood any part of the bill, we would be glad to hear any clarification or explanation. As this is listed as the BDR (Bill Draft Request) and not the final bill, if one or more of these issues have been fixed then an update would be welcome.
However, with the severity and systemic issues we have noted throughout the draft bill’s language, significant changes will be required but many are simple deletions of sections, sub-sections, and over regulation with necessary notices of clarification. The biggest amendment being to include other studio developers in this plan which is fundamentally counterproductive to the future building and advancement of Nevada’s film and media infrastructure.
We also ask that Warner Bros. @wbd take these notes and potential amendments into consideration before presenting their film tax bill to the Nevada legislature as the same issues could be present in their bill.
We believe it is better to help point out & possibly correct issues in any NV Film Tax Incentive bill as artists and students are depending on a new modern production program and infrastructure that serves their film and media careers and creative endeavors well into the future.
To stand by & say nothing would cause undue harm to the local Nevada film community & would only further the systemic issues we have seen in other state programs that fail to properly foster local film industry development & causes criticism & reduction or loss of state programs.
As posted on the bill page:
As Co-President of Babs Do Productions and with our own Babs Do Studios development proposed for Nevada, I have written a detailed series of notes for changes and amendments on our Twitter X page for Babs Do Productions and have detailed my findings while going through the bill draft. The core issue is that the bill has a systemic problem with inappropriate and discriminatory DEI preferences including forced hiring quotas for consideration for tax credits, business operations, and even consideration for additional grant funding with possible leftover tax funds. Additionally, the bill makes no incentives for other studios that may want to build in Nevada, even Nevada-born developments like Babs Do Studios are left to the side with this bill when startup funding for construction and even film production is harder to come by than ever before. The film tax incentive program should be open to all tax-paying Nevadans, Nevada-based productions, and developers regardless of their genetic makeup or “equity” basis and without political, social, or cultural agendas being incorporated into state legislation. With other states starting smaller studios and repurposing pre-existing properties into production studios, which is one of the ways Babs Do Studios can be designed as, the opportunity for faster and more economical infrastructure development should be accounted for and incentivized as the next generational step in film tax incentives to increase local production. This way, Babs Do Studios and Warner Bros. can also be a part of the first major studios in Las Vegas to help establish and expand Nevada’s film and media production capacity. We hope that this message and our notes on Twitter X finds its way back to Sony in order for swift amendments and changes before the final bill is passed as the bill with these changes can make AB238 the most solid and universal film production and infrastructure tax incentive bill in the country and ensure Nevada’s production hub status.
Conclusion
We came across the new update while seeing a blog post from Stagerunner.net, the silence on social media is quite surprising as the article and a similar one on Hollywood Reporter state that the bill could be voted on as soon as Monday February 17, 2025. Finally seeing what was contained in this bill was definitely a heartbreak and on Valentine’s Day of all days! We hope that our message reaches Sony and all involved so that swift changes and amendments can be made.
Also, we don’t want to make enemies or cause problems for Sony or anyone involved because we have to look at it this way, with the bill as it is in draft form, the worry is that if we say nothing and the final bill follows exactly what is written currently, members of the legislature could point those issues out and reject the bill completely and thus killing the entire endeavor outright. However, if we do share our criticisms then there is a chance that the bill can be amended and put on the right path to benefit everyone and especially the local communities, artists, and students in film and media across the state.
Furthermore, as potential Nevada film studio developers ourselves, we have to look at the practicality of the entire bill which doesn’t offer support for anyone but Summerlin Studios, this fundamentally will be damaging to Nevada’s advancement towards being a production hub and “Hollywood 2.0” state. This is because the bill leaves a lot out and doesn’t explain completely why Summerlin Studios receives all of these benefits and tax credits whereas Warner Bros. or Babs Do Studios or any other interested studios apparently can’t, so this opens itself up to be completely rewritten, overwritten, or completely removed once another studio wants to build in Nevada as that next studio will have to campaign to pass its own amendments or even a new bill in order to build in the state, at least by going by what is written in the bill draft as it is.
Regardless of what happens next, whether AB238 or Warner Bros’ bill or any other Nevada Film Tax Incentive bill gets approved or not, Babs Do Productions will continue to work towards establishing our own vision of Hollywood 2.0 with Babs Do Studios!