Incoming Gov. Steve Sisolak has promised dramatic increases in spending without raising taxes. While it’s doubtful he will be able to fulfill all his campaign promises, he should be eager to eliminate wasteful spending programs. Near the top of that list is Nevada’s film tax credit program.
Started in 2013, the program offers indirect subsidies, called transferable tax credits, to movies and television shows that film in Nevada. Producers can sell those tax credits to other companies, which can allow them to pocket millions. For instance, the state awarded more than $4 million in credits to “Paul Blart: Mall Cop 2” for filming in Nevada.
Originally, the program was funded with $80 million in credits, spread over four years. Politicians took away $70 million, however, when crafting the $1.3 billion package to lure Tesla. The film credits were revived in 2017 and are now capped at $10 million a year.
Supporters claim the tax credits create jobs and help grow Nevada’s film industry. The incentives, they say, will pay for themselves. It’s like finding free money, while creating jobs.
In fact, it’s more like welfare for Hollywood. See more at Las Vegas Review.