According to David O’Reilly, CEO of Howard Hughes Holdings, the Nevada Assembly could hear a piece of legislation commonly referred to as the “Hollywood 2.0” bill as soon as this week. This bill’s passage would provide the tax credits necessary for the real estate developer to start work on a project with Sony Pictures Entertainment.
Initially introduced to the assembly on February 12 of this year, Nevada Assembly Bill 238, the “Nevada Studio Infrastructure Jobs and Workforce Training Act” or “Hollywood 2.0” bill, would give a newly-built Summerlin Studios upwards of $80 million a year in tax credits, starting in 2028 and ending in 2043.
“They’re introducing the bill in the assembly,” O’Reilly said, “and we’ll have the opportunity to get this over the goal line.”
The Idea Behind the Studio
The idea for building a studio in Las Vegas in the first place came from Mark Wahlberg, who moved to the city over two years ago. He had an interview where he shared that he wanted to build a studio in Las Vegas, and O’Reilly happened to take notice.
“I set up a meeting and met with him two days later,” O’Reilly stated. “I pitched him on building it at that site down the street from The Summit, where he lives. He called me back after the meeting and asked if I could come back on Monday, and then he introduced me to Tony Vinciquerra, the now-former CEO of Sony Pictures.”
Requirements of a New Vegas Studio
In exchange for providing these notable tax credits, Summerlin Studios would have to spend at least $400 million in Nevada.
Additionally, 50% of photography and filming would be done in Nevada, with 50% of staff comprising below-the-line local employees. A film would have to be finished within 18 months to qualify for tax credits, and the studio would be required to spend $100 million on film production for ten years.
“This is not a handout to help with the physical construction of the studios themselves,” O’Reilly stated. “We’re coming out of pocket 100 percent. It’s a ‘show me bill’ not a ‘trust me bill’ —we’ll put the money in the dirt. The tax credit is earned after thousands of jobs and economic development have come from the construction and filming. We have a deep belief in its viability. We will show everybody here, all the residents of Nevada, the economic diversity and growth that can come from this.”
Project Costs and Location
Sony Pictures Entertainment and Howard Hughes Holdings estimate that their project alone will cost $1.8 billion—and they’re paying it all themselves. Summerlin Studios would be built at Flamingo Road and Town Center Drive, and it would include a combination of soundstages, production facilities, and mixed-use space across 13 new buildings.
“To ensure that [we] can accomplish that,” O’Reilly continued, “I’m investing $8 million to build a vocational training school to train grips, lighting electricians and carpenters.”
The Economic Impact
According to The Hollywood Reporter, O’Reilly estimates that, upon completion, Summerlin Studios will create up to 17,000 permanent jobs with an average income of $113,000 for its employees. He expects the project to have an annual economic impact of $2.8 billion. Of course, the financial implications would extend far beyond the studio itself.
“We have Sony and other production companies that want to be here,” O’Reilly said. “They’re going to create high-paying jobs. This is an opportunity to grow and diversify this economy.”
A Potential New Future for Las Vegas
Summerlin Studios promises to add newfound diversity to the Las Vegas economy, which traditionally relies on its popular hospitality industry. It remains to be seen whether the bill will be passed in the Nevada Assembly, but O’Reilly has said, “If the bill passes, shovels will go in the ground the next day.”
