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If you're a filmmaker looking to maximize your budget and take advantage of enticing incentives, look no further than Nevada film tax incentives. In this comprehensive guide, we'll walk you through everything you need to know to harness the power of Nevada's film tax credits.
Nevada's stunning landscapes, diverse locations, and supportive filmmaking infrastructure make it an attractive destination for productions of all sizes. And with Nevada film tax incentives in your toolkit, you can stretch your budget even further and bring your creative vision to life in the Silver State.
Before we dive into the ins and outs of Nevada film tax incentives, we invite you to explore Wrapbook's Production Incentive Center. This invaluable resource provides filmmakers with easy access to comprehensive information about film tax incentives across various states, including Nevada.
With Wrapbook, researching and comparing incentives has never been easier. The Wrapbook Production Incentive center allows filmmakers to make informed financial decisions when choosing their next production location.
From Reno to Las Vegas, Nevada is the gaming capital of the country. But Nevada's allure extends far beyond the bright lights of the Las Vegas Strip. From the majestic landscapes of Red Rock Canyon to the historic charm of Virginia City, the Silver State offers a diverse range of settings to suit any production.
Nevada’s proximity to Los Angeles and lack of a state income tax have helped make it a burgeoning production hub. But what truly sets Nevada apart is its robust film tax incentives designed to attract and retain filmmakers from around the world.
Nevada film tax incentives didn't materialize overnight. They're the result of years of advocacy and legislative action aimed at bolstering the state's film industry and stimulating economic growth.
Nevada’s existing film tax credit was established by the legislature in 2013, but the following year its funds were depleted to support other business tax incentives in the state. The most notable film to benefit from the initial program was Paul Blart: Mall Cop 2.
Legislators began funding the film tax credit program at a smaller scale in 2017, but Nevada’s film industry has not yet taken off as expected. Currently, the state legislature is considering a new Nevada film tax credit bill that would dramatically increase film tax incentives—more on that in a bit.
First, let’s explore what the current Nevada film tax credit entails.
The Nevada film tax credit is a powerful incentive for production companies. The Silver State offers a transferable tax credit of 15%-25% based on qualified production expenditures incurred in the state.
A transferable tax credit is different from a refundable tax credit in that the state does not issue your production a refund check. Instead, it offsets your in-state tax liabilities.
This can cause some confusion, since most productions receiving these tax credits don’t have businesses created in the state and thus don’t have any state tax liabilities to offset.
That’s why the tax credit is transferable—you can sell it to another company, which in turn can use it to offset their in-state tax liability. In Nevada, casinos have a particularly large tax liability and may be the perfect buyer for your transferable film tax credit.
However, selling your credits on the market means you probably won’t get back dollar for dollar what the credit’s worth. The market might offer 90 cents, or 80 cents, on the dollar. Still, the Nevada film tax credit can be quite lucrative for productions looking to film in the Silver State.
The Nevada film tax credit has a minimum spend requirement of $500,000. This means that productions must spend at least $500,000 in Nevada to qualify for the tax credit.
Nevada also has a project cap of $6,000,000, meaning $6 million is the most amount of money that can be awarded to any particular project.
Finally, the Nevada film tax incentives program has an annual cap of $10,000,000 for the fiscal year 2024. This annual cap represents the total allocation for film tax credits for 2024.
It’s worth noting that Nevada film tax incentives could dramatically increase in the next few years. Currently there is a bill working its way through the Nevada legislature—the Nevada Film Studio Infrastructure Act, Senate Bill 496—that could amount to $4.9 billion in tax breaks over 25 years.
This proposed Nevada film tax credit bill would increase the transferable tax credit to 30% back on production expenditures and raise the program’s annual funding cap to $15 million. It would also offer hundreds of millions of dollars in tax incentives for two new studios under construction in Southern Nevada, one to be built on the UNLV campus, the other owned by Sony Pictures.
The Nevada film tax credit bill will likely be up for a vote when the Nevada Senate next convenes in February 2025.
Eligibility for the Nevada film tax credit is open to production companies engaged in filming or post-production activities within the state. Eligible projects include:
Interestingly, Nevada, the gaming capital of the country, is one of the few states that allows game shows to qualify for their film tax credit.
And whether you're producing a feature film, television series, or commercial, you may be eligible to claim valuable Nevada film tax incentives and make the most of your Nevada filming experience.
Qualified expenditures form the foundation of the Nevada film tax credit, encompassing a wide range of production-related costs. From wages paid to cast and crew to physical production expenses like equipment rentals and location fees, these expenditures are essential for maximizing your eligibility for Nevada film tax incentives.
The first, and often largest, portion of production expenditures include wages paid to your cast and crew. The Nevada Film Office sets different film tax credit limits depending on the type of cast and crew. These include:
Above-the-line residents employed on productions in the state of Nevada qualify for a base tax credit of 15%. This means that the production will receive back 15% of the in-state wages they pay each above the line resident in the form of a tax credit.
Above-the-line nonresidents currently qualify for a base tax credit of 12% on all in-state wages paid during the course of production.
Below-the-line residents qualify for a base tax credit of 15% back on wages paid while they are employed in the state of Nevada.
Unfortunately, below-the-line nonresidents currently do not qualify for a film tax credit in Nevada.
There is a compensation cap of $750,000 per individual or loan-out corporation, meaning that only the first $750,000 paid in wages to any cast and crew qualify for the tax credit.
Resident producer compensation must not exceed 10% of total Nevada expenditures. The limit for non-resident producers is lower and is currently set at 5%.
Finally, it’s worth noting that these percentages may change within the next couple years as the state legislature votes on the Nevada film tax credit bill. If you’re hoping to find larger savings in the Silver State and don’t need to commence production immediately, keep an ear out during spring 2025, when these tax credit rates could increase substantially.
Along with cast and crew wage expenses, Nevada offers a tax credit of 15% for physical production expenses. This means productions can get back 15% of every dollar spent on physical goods purchased in state from local vendors.
Physical production expenses include rental fees for equipment and facilities and goods purchased within the state.
With all these credits maxing out around 15%, you might be asking how you can qualify for the 25% tax credit that Nevada boasts as the upper limit to its film incentive? That’s where bonuses come in.
The Nevada film tax incentive program offers additional bonuses for productions that meet certain criteria, including:
If more than 50% of the below-the-line personnel are Nevada residents, productions will see a 5% bump on credits for cumulative qualified expenditures and production costs.
In order to claim this tax credit, the production must provide Nevada residency forms.
If more than 50% of the filming days occurred in a rural county, productions are eligible for a 5% credit bonus on the cumulative qualified expenditures and production costs.
For the purpose of the film tax incentive, Nevada defines rural counties as ones in which, during each of the two years immediately preceding the date of application, qualified productions incurred less than $10,000,000 of direct expenditures.
While Nevada film tax incentives offer significant financial benefits, they also come with certain requirements that must be met. From application deadlines to audit obligations, filmmakers must adhere to a set of guidelines to qualify for these incentives and ensure a smooth and successful application process.
In order to qualify for a Nevada film tax credit, at least 60% of the production budget, including pre-production, production, and post-production, must be incurred in Nevada as qualified direct production expenditures.
If all post-production will be completed outside of Nevada, however, then post-production expenditures can be withheld from the 60% calculation.
Additionally, all companies applying for a Nevada film tax credit must register with the Nevada Film Office.
In order to secure a Nevada film tax credit, an audit is required from a CPA approved by the Nevada Film Office. All accounting and other required documentation must then be submitted to the Film Office no later than 270 days after completion of the production.
Productions must be completed within 18 months after the beginning of principal photography.
Navigating the application process for the Nevada film tax credit requires careful planning and attention to detail.
From submitting your application before starting principal photography to undergoing a mandatory audit within 270 days of completing your project, each step plays a crucial role in securing these valuable incentives.
In order to qualify for a Nevada film tax credit, you must submit:
Productions must apply for a Nevada film tax credit no earlier than 90 days prior to the start of principal photography. There are no application or registration fees.
Commencement of principal photography must begin no later than 90 days after the application is approved.
You must complete your project within 18 months of your application and undergo an audit within 270 days of completing your project.
Your production will receive your transferable tax credit no more than 45 days after completion of the audit.
Finally, you must use your Nevada film tax incentives within four years of receipt.
To make the most of your Nevada filming experience, be sure to connect with the Nevada Film Office. Their video resource library, crew and services finder, and location search options provide invaluable support and resources to filmmakers looking to explore all that the Silver State has to offer.
The Nevada Film Office is the best source of information and updates for all things Nevada film tax incentives, especially as the Nevada film tax credit bill works its way through the state senate.
Nevada film tax incentives represent a golden opportunity for filmmakers to stretch their budgets, explore stunning locations, and bring their creative visions to life in one of the most dynamic states in the country. With Wrapbook as your guide and Nevada as your backdrop, the possibilities are endless.
If you’re curious how film incentives in Nevada stack up against the rest of the country, check out our state-by-state incentive breakdown. Or better yet, head on over to Wrapbook’s new Production Incentives Center where you can have all your incentive questions answered.
Unlock the full potential of Nevada film tax incentives with Wrapbook. Start planning your next production today!
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
