Warner Bros. has committed $8.5 billion to the building of a film and TV studio in the heart of Nevada, but it will greatly depend on a pending film tax credit bill being passed by the Nevada Legislature.

Warner Bros. Discovery made a statement on Tuesday of its intention to invest a staggering $8.5 billion in a partnership with the University of Nevada, Las Vegas (UNLV), to lease and run a state-of-the-art movie and television studio in Nevada. However, the ambitious project, which is being developed by Birtcher Development, hinges on the approval of a crucial film tax credit bill by the Nevada Legislature.

The Nevada Film Studio Infrastructure Act, introduced by Senator Roberta Lange during last year's legislative session, is the legislative linchpin for WBD's commitment. Despite its initial failure to pass on the 6th of June, 2023, the bill is anticipated to be reintroduced early next year, in February of 2025, with hopes of securing the necessary legislative support.

In a recent press release, Senator Lange emphasized the importance of diversifying Southern Nevada's economy and investing in workforce development. "When talking with citizens, we hear repeatedly that we need to further diversify our Southern Nevada economy and at the same time commit the resources to develop our workforce," Lange stated. "These are top priorities for us all, and I can proudly say my legislation accomplishes both."

A bold proposal with far-reaching implications

Senate Bill 496, also known as the Nevada Film Studio Infrastructure Act, sets forth a proposal to provide as much as $190 million in yearly tax credits for television and film production over the span of two decades. This amount far exceeds Nevada's previous use of tax credits and represents a significant financial commitment from the state. Although these credits could cost Nevada an estimated $2 billion, supporters of the bill argue that the potential return on investment could be as high as $55 billion over the next two decades.

The bill's proponents believe that this substantial financial incentive will attract major film and television productions to Nevada, transforming the state into a key player in the entertainment industry. The creation of a thriving film and television production hub in Nevada could stimulate economic growth, create jobs, and further diversify the state's economy.

Warner Bros. Studios Nevada: a new era for Las Vegas

If the Nevada Film Studio Infrastructure Act passes, Warner Bros. Studios Nevada is set to become a reality. The proposed facility would be located at the University of Nevada's Harry Reid Research & Technology Park in Las Vegas and would feature full television and film studios as well as other facilities designed to capitalize on emerging technologies related to Warner Bros. Discovery's content creation.

In addition to the studio facilities, WBD plans to establish the Nevada Media and Technology Lab, a cutting-edge research and development hub for the film department of the university. This collaboration between WBD and UNLV is expected to provide students and faculty with immense opportunities to work with industry-leading professionals and access state-of-the-art technology.

Senator Lange expressed her zeal for the partnership, stating, "It's safe to say that having a lead partner with the depth of Warner Bros. and its ability to keep the studios full starting from Day One is a key difference maker and enables us to successfully meet these two priorities."

Rivalry in the desert: Sony Pictures vs. Warner Bros.

The prospect of Warner Bros. Studios Nevada brings a new dimension to Hollywood's rivalry, this time playing out in the Nevada desert. Initially, it was WBD's rival, Sony Pictures Entertainment, that expressed interest in partnering with Birtcher Development and UNLV for a similar project. However, Sony ultimately chose to collaborate with the Howard Hughes Corporation for a $1.8 billion motion picture studio in Summerlin, a suburb of Las Vegas.

The Sony-backed project, which has already received unanimous support from the Clark County Zoning Commission, is slated to occupy 30 acres of prime real estate in Summerlin. This development sets the stage for an intense competition between two of Hollywood's biggest studios, both vying to establish a dominant presence in Nevada's growing film and television production landscape.