Warner Bros. to Commit $8.5B to LV Studio, Should Nevada Pass SB 496

Warner Bros. Discovery (WBD) is planning to commit over $8.5 billion to lease and operate a movie studio in Nevada. This move, however, would depend on the passing of a film tax credit incentive bill.

WBD’s commitment would see it team up with UNLV in order to lease and operate a studio built by Birtcher Development. The multi-billion arrangement would see the leased property renamed to Warner Brothers Studios Nevada.

The mass media and entertainment conglomerate’s new studio is set to be located at UNLV’s Harry Reid Research and Technology Park on the far west side of the town. 

Warner Bros. Studios Nevada would feature full-service film and TV studios, in addition to multiple facilities designed to enhance the company’s content creation. WBD would also establish the Nevada Media and Technology Lab that would be used by UNLV’s film department.

As mentioned, this partnership would depend on the passing of a crucial film tax bill dubbed SB 496.

SB 496 Could Generate Billions in Revenue

The bill in question was shot down in June 6, 2023, but is expected to be reintroduced in February next year. The legislation, authored by Senator Roberta Lange, seeks to diversify the economy in Southern Nevada and commit more resources to the development of the region’s workforce.

Lange believes that her bill would accomplish both of the aforementioned goals. She believes that WBD would be an important partner that could unlock significant value and highlighted the studio’s proven track record.

For context, the measure would provide up to $190 million in transferable tax credits for film and TV production each year for the duration of over twenty years. This would vastly exceed Nevada’s prior use of transferable tax credits.

SB 496 might be a risky gambit as it could cost Nevada some $2 billion. However, the measure’s proponents say that the state could earn multiple times that over the following 20 years. Optimistic estimates put this potential revenue at $55 billion.