Warner Bros. Discovery plans to expand its production facilities into Las Vegas, Nevada. The company is willing to invest a significant sum of $8.5 billion over 17 years, but with a condition: a substantial expansion of Nevada’s film tax-credit program.
Nevada’s film tax-credit program is currently limited to $10 million annually, with individual films capped at $6 million. This pales compared to other states like California, which offers $330 million annually, and Georgia, which offers over $1 billion without a cap. Warner Bros. Discovery’s demand for a more generous tax-credit program highlights the importance of such incentives in attracting major film productions.
Warner Bros. Discovery’s proposed $8.5 billion investment in Las Vegas hinges on a significant expansion of Nevada’s film tax-credit program. Currently, Nevada offers only $10 million annually for its film tax-credit program, significantly less than other states like California and Georgia.
Despite previous attempts, including a 2023 proposal backed by celebrities like Mark Wahlberg and Jeremy Renner, Nevada’s efforts to expand its tax-credit program have been unsuccessful. However, Warner Bros. Discovery’s interest could provide the necessary momentum to push the legislation through the state senate in February 2025. A proposed expansion to $190 million in annual tax credits would incentivize the studio’s $500 million investment, making it a financially sound proposition for Nevada.
If approved, Warner Bros. will lease and operate Nevada Studios, a 34-acre facility, which will be rebranded as Warner Bros. Studios Nevada. The studio plans to partner with UNLV to establish workforce development programs, including vocational training, internships, and research opportunities.
Read More: Extreme H Signs 3-Year FOX Sports Deal
Warner Bros. Eyes Las Vegas as a New Hollywood Hub
While the $500 million investment is a fraction of Warner Bros.’s annual content spending, it represents a significant expansion of the studio’s production capabilities. This move positions Nevada as a potential hub for film and television production, attracting other studios like Sony, which is also considering a presence in Las Vegas.
Warner Bros. is fully committed and excited about the potential of a long-term partnership and presence in Nevada. We are confident that this will be a win-win situation for the State of Nevada, the Las Vegas community, and WBD as we look ahead to our next 100 years of exceptional storytelling. Studios chief operating officer Simon Robinson said in a statement.
“We repeatedly hear from citizens that we need to further diversify our economy in southern Nevada while also allocating resources to workforce development,” Lange said. “These are our top priorities, and I’m glad to declare that my proposal achieves both of them. 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.”
Therefore, David Zaslav may be going to the desert to bury his head in the sand. WBD shares have dropped 70% since the firm’s establishment in April 2022, and the corporation still owes almost $37 billion. Oh, and it just did an audit on its own TV companies and discovered that they were worth $9 billion less than it had previously estimated.
FAQs
Warner Bros. is eyeing Las Vegas as a potential new hub for film and television production. The city’s diverse landscapes, modern infrastructure, and growing entertainment industry make it an attractive location for studio operations.
Warner Bros. plans to invest at least $8.5 billion over 17 years in the Las Vegas project.
