Text of NV AB 5 (2025)

A.B. 5 - *AB5* ASSEMBLY BILL NO. 5–SELECT COMMITTEE ON JOBS AND ECONOMY PREFILED NOVEMBER 12, 2025 ____________ Referred to Select Committee on Jobs and Economy SUMMARY—Enacts the Nevada Studio Infrastructure Jobs and Workforce Training Act. (BDR S-13) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to economic development; enacting the Nevada Studio Infrastructure Jobs and Workforce Training Act; requiring the Office of Economic Development to enter into a development agreement to establish certain criteria for the development of infrastructure for the production of motion pictures and other qualified productions and other new capital investment in this State; establishing certain penalties if the development does not meet certain requirements for new capital investment and expenditures for the production of motion pictures and other qualified productions; establishing requirements for a production company located at such a development to be eligible for film infrastructure transferable tax credits for qualified productions produced at the development; providing for the calculation of the amount of film infrastructure transferable tax credits; requiring the creation of a production studio entertainment district; revising provisions governing noninfrastructure transferable tax credits for motion pictures and other qualified productions produced in this State; authorizing an additional amount of noninfrastructure transferable tax credits; establishing the Account for Nevada Film, Media and Related Technology Education and Vocational Training and a board to approve distributions from the Account; providing for the distribution of money from the Account – 2 – - *AB5* to certain entities and organizations that provide education and vocational training to develop a workforce for the production of qualified productions in this State; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes a program for the issuance of transferable tax credits 1 by the Office of Economic Development to the production company of a motion 2 picture or other qualified production, based upon qualified direct production 3 expenditures made for the purchase of personal property or services from a Nevada 4 business. (NRS 360.758-360.7598) This bill revises provisions governing these 5 transferable tax credits and enacts the Nevada Studio Infrastructure Jobs and 6 Workforce Training Act to authorize film infrastructure transferable tax credits for 7 qualified productions produced at the site of the Summerlin Production Studios 8 Project. 9 Sections 1-20 of this bill enact the Nevada Studio Infrastructure Jobs and 10 Workforce Training Act, which provides film infrastructure transferable tax credits 11 for production companies located within the Summerlin Production Studios Project, 12 as defined in section 9. Section 10 requires the Office of Economic Development 13 to enter into a development agreement with the lead participant of the Project to 14 establish: (1) certain criteria that the Project is required to satisfy for film 15 infrastructure transferable tax credits to be authorized for qualified productions at 16 the Project; and (2) certain requirements for new capital investment in this State 17 and the generation of direct production expenditures in this State, which the Project 18 must meet, with certain exceptions, to avoid penalties specified in section 10. 19 Section 11: (1) authorizes production companies located at the Project to apply, on 20 or after December 1, 2026, to the Office for film infrastructure transferable tax 21 credits for qualified productions produced, in whole or in part, at the Project; and 22 (2) authorizes such credits to be used against the modified business tax, insurance 23 premium tax or gaming license fee, or any combination of these taxes and fees. 24 Section 12 establishes the qualified direct production expenditures which are the 25 basis for calculating the amount of film infrastructure transferable tax credits, 26 including, without limitation: (1) purchases, rentals or leases of property or services 27 from a Nevada business; (2) wages and fringe benefits paid to employees who are 28 Nevada residents or other personnel for labor or services provided in this State on 29 the qualified production; and (3) amounts paid to service providers for the services 30 of certain persons on the qualified production. Section 13 establishes requirements 31 for the employment of Nevada residents as below-the-line employees of qualified 32 productions. Section 14 provides that the base amount of film infrastructure 33 transferable tax credits is 30 percent of the amount of qualified direct production 34 expenditures calculated under section 12, with certain reductions if the production 35 company does not satisfy certain criteria for work opportunities to members of 36 traditionally underrepresented groups. Section 15: (1) limits the total amount of 37 film infrastructure transferable tax credits issued pursuant to sections 1-20 to 38 $95,000,000 for each fiscal year beginning on or after July 1, 2029; and (2) 39 prohibits the approval of an application for film infrastructure transferable tax 40 credits if the application is submitted in a fiscal year that begins on or after July 1, 41 2044. Section 16 requires a production company to: (1) commence principal 42 photography within a certain period of time after the Office approves an application 43 for a certificate of eligibility for film infrastructure transferable tax credits; (2) 44 complete the qualified production within 18 months after the date of 45 commencement of principal photography, except that the Office may extend this 46 period for not more than 6 months; and (3) submit certain required information 47 within the required period. Section 17 requires a production company to repay film 48 – 3 – - *AB5* infrastructure transferable tax credits under certain circumstances. Section 19 49 requires the lead participant in the Project to submit certain reports to the Governor, 50 the Legislature and the Office. Section 20 requires certain reports to be made to the 51 Legislature concerning film infrastructure transferable tax credits. 52 Sections 23-32 of this bill make various changes to the existing law governing 53 the noninfrastructure transferable tax credits for motion picture and other qualified 54 productions. (NRS 360.758-360.7598) Section 24 changes references to “extras” in 55 a qualification production to “background actors.” Section 25: (1) provides that 56 digital media productions are qualified productions for the purposes of eligibility 57 for film infrastructure transferable tax credits and noninfrastructure transferable tax 58 credits; and (2) clarifies that media productions solely produced for social media 59 are not eligible for such transferable tax credits. Section 26 revises the criteria to be 60 eligible for noninfrastructure transferable tax credits to be the same as the criteria 61 for film infrastructure transferable tax credits by: (1) removing the requirement that 62 a certain percentage of direct production expenditures be incurred in this State and, 63 instead, requiring that at least 50 percent of the total principal photography days of 64 the qualified production take place in this State or a certain amount of qualified 65 direct production expenditures be incurred in this State; and (2) requiring a 66 production company to have a workforce plan that establishes certain goals and 67 provide to the Office a final assessment of whether the production company met or 68 made a good faith effort to meet those goals. Section 22 of this bill applies to 69 applicants for noninfrastructure transferable tax credits the same requirements for 70 the employment of Nevada residents as below-the-line personnel that apply to 71 applicants for film infrastructure transferable tax credits. Section 27 revises the 72 expenditures and costs that may serve as a basis for noninfrastructure transferable 73 tax credits. Section 28: (1) increases the base amount of transferable tax credits 74 from 15 percent of the qualified direct production expenditures to 30 percent of the 75 qualified direct production expenditures, for an application submitted in each fiscal 76 year beginning on or after July 1, 2029, and ending before July 1, 2044; and (2) 77 provides for certain reductions to that base amount during that period. Section 29 78 makes certain provisions of existing law relating to the calculation of 79 noninfrastructure transferable tax credits inapplicable for the period beginning on 80 July 1, 2029, and ending on June 30, 2044. Section 30 temporarily increases from 81 $10,000,000 to $25,000,000 the total amount of noninfrastructure transferable tax 82 credits for motion picture and other qualified productions that may be issued under 83 the existing program for each fiscal year beginning on or after July 1, 2029, until 84 June 30, 2044. Sections 31 and 32 make conforming changes so that 85 noninfrastructure transferable tax credits are administered and reported in the same 86 manner as film infrastructure transferable tax credits. 87 Section 18 requires the Clark County Board of County Commissioners to 88 create a production studio entertainment district for the purpose of enhancing early 89 childhood education opportunities, including prekindergarten, for children in Clark 90 County. Under section 18, the boundaries of the district are required to be entirely 91 within the unincorporated areas of Clark County and include only parcels of land 92 that are located within the boundaries of the Summerlin Production Studios Project. 93 Section 18 requires certain taxes on transient lodging, certain property taxes and 94 certain sales and use taxes imposed in the district to be pledged and distributed to 95 the Clark County School District and used by the Clark County School District 96 solely for the purposes of prekindergarten programs in the Clark County School 97 District. Finally, section 18 requires the Clark County School District to submit 98 annual reports to the Office concerning the use of money distributed to Clark 99 County School District under section 18. 100 Sections 33-40 of this bill establish a program to provide grants to certain 101 organizations that provide education and vocational training for workforce 102 development for the production of motion pictures and other qualified productions. 103 – 4 – - *AB5* Section 38 establishes the Account for Nevada Film, Media and Related 104 Technology Education and Vocational Training for the purpose of allocating 105 money to certain entities and organizations that provide education and vocational 106 training for such workforce development. Sections 11 and 26 require a production 107 company that is issued transferable tax credits for a qualified production to pay to 108 the Office an amount of money equal to 1 percentage point of the percent of 109 qualified direct production expenditures used to calculate the amount of 110 transferable tax credits issued to the qualified production, and requires the Office to 111 deposit that money with the State Treasurer for credit to the Account. Section 39 112 creates and provides for the composition of the Board for Nevada Film, Media and 113 Related Technology Education and Vocational Training within the Office of 114 Economic Development. Section 40: (1) requires the Board to establish the 115 procedure for a person or entity to apply for a grant of money from the Account, the 116 criteria to be used to determine whether to approve an application for a grant from 117 the Account to an applicant and the requirements for reports by recipients of such 118 grants concerning the use of the grants; and (2) prohibits the making of a grant from 119 the Account unless the Board approves the application for the grant. 120 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Sections 1 to 20, inclusive, of this act may be cited 1 as the Nevada Studio Infrastructure Jobs and Workforce Training 2 Act. 3 Sec. 2. 1. The Legislature hereby finds and declares that: 4 (a) The Las Vegas Metropolitan Area is the largest metropolitan 5 area in this State and has a site available to be developed to create 6 large-scale facilities for the location of companies that produce 7 motion pictures, television programs and other qualified productions 8 in this State. The establishment of such a studio campus will create 9 jobs in Nevada’s creative industries and diversify the economy of 10 this State. 11 (b) The Las Vegas Metropolitan Area possesses unique 12 geographic, economic and resource advantages that make it 13 especially suitable for a project of this magnitude. Because of these 14 unique local conditions, it is necessary to enact a law of local and 15 special application to promote and secure the benefits of a large- 16 scale film and media production development in Southern Nevada 17 for the benefit of the entire State. 18 (c) Because of these special characteristics and circumstances in 19 Southern Nevada, a general law cannot be made applicable to 20 achieve the purposes of this Act and a law of local and special 21 application is necessary to promote and secure the advantages of the 22 local and special characteristics and circumstances within the Las 23 Vegas Metropolitan Area. 24 2. The Legislature further finds and declares that the content 25 production industry has presented an ambitious and visionary plan 26 – 5 – - *AB5* for all of Southern Nevada, which leverages the region’s unique 1 geographic assets, economic capabilities and infrastructural 2 advantages. The industry’s vision will promote the generation of 3 thousands of high-quality, high-paying jobs, billions of dollars in 4 incremental capital investments and billions more in new economic 5 output and ongoing spending. This plan transcends the development 6 of a mere studio complex, proposing instead a dynamic production 7 campus that is intended to serve as the nucleus for a robust, 8 sustainable industrial cluster. The Legislature recognizes that 9 realizing this vision depends fundamentally upon a collaborative 10 public-private partnership, wherein the State’s commitment, 11 provided through transferable tax credits, creates leverage that 12 significantly multiplies the benefits accruing to this State. In 13 entering this partnership, the Legislature affirms its clear and 14 unwavering expectation that if the industry benefits from the State’s 15 contribution of transferable tax credits, the industry’s promises will 16 be fulfilled, the outcomes articulated by the industry will be met or 17 exceeded, and the anticipated economic, fiscal and social benefits 18 driven by the industry will be fully realized. 19 3. The Legislature further finds and declares that the enactment 20 of this Act will achieve a bona fide public social and economic 21 purpose. The public investment made through the film infrastructure 22 transferable tax credits is intended to yield substantial benefits in 23 employment, workforce development and economic growth, and the 24 overall economic benefits expected to accrue from incremental 25 investment and the ongoing operations of the project will exceed 26 any adverse effect on public revenues from those tax incentives. 27 This Act, therefore, serves the public interest by fostering significant 28 new private investment, creating enduring jobs and educational 29 opportunities, and positioning Nevada as a leader in the content 30 creation industry while ensuring that the long-term gains to the 31 economy more than outweigh the State’s investment in the project. 32 Sec. 3. It is the intent of the Legislature, in enacting this Act, 33 to: 34 1. Promote the diversification of the economy of this State by 35 cultivating a thriving hub for content creation and production in 36 Nevada, which will establish Nevada as a nationally recognized 37 center for film, television and digital media production, thereby 38 broadening Nevada’s economic base beyond its traditional 39 industries and enhancing the State’s prominence in the creative 40 economy. 41 2. Provide an anchor for a new creative sector in Southern 42 Nevada through partnerships with global film and media companies 43 to develop and operate facilities for the production of film, 44 television and digital media productions and the involvement of 45 – 6 – - *AB5* studio partners as anchor tenants to bring world-class expertise, 1 innovative technologies and global market access that will 2 accelerate the growth of a robust content creation industry in 3 Southern Nevada. 4 3. Support and promote workforce development in this State by 5 establishing and supporting education and vocational training 6 programs to prepare Nevada’s workforce for high-wage careers in 7 film, television and digital media production, equip Nevada’s 8 residents with in-demand skills and create pathways into the 9 industry, thereby generating thousands of new jobs for Nevadans 10 and building a skilled talent pool that sustains the State’s creative 11 sector for the long term. 12 Sec. 4. As used in sections 1 to 20, inclusive, of this act, 13 unless the context otherwise requires, the words and terms defined 14 in NRS 360.7582 and 360.7586, as amended by sections 24 and 25 15 of this act, have the meanings ascribed to them in those sections, 16 and the words and terms defined in sections 5 to 9, inclusive, of this 17 act have the meanings ascribed to them in those sections. 18 Sec. 5. “Capital investment” means all costs and expenses 19 incurred by the participants in the Project in connection with the 20 acquisition of the land for the Project and the acquisition, 21 construction, installation and equipping of the facilities, buildings, 22 structures and other infrastructure at the Project for the production 23 of qualified productions at the Project. 24 Sec. 6. “Lead participant” means the person designated by the 25 participants in the Project as the lead participant for the Project. 26 Sec. 7. “Nevada Partners Vocational Training Studio” means a 27 facility: 28 1. To be located by December 31, 2029, at a site owned by 29 Nevada Partners, Inc., or its successor organization, or if Nevada 30 Partners, Inc. ceases to exist and has no successor organization, to 31 be located by December 31, 2030, at a site approved by the 32 Southern Nevada Enterprise Community Board created by section 8 33 of the Southern Nevada Enterprise Community Infrastructure 34 Improvement Act; and 35 2. At which vocational training and education is to be provided 36 for the development of a trained workforce for the production in this 37 State of qualified productions that are film and television 38 productions. 39 Sec. 8. “Office” means the Office of Economic Development 40 within the Office of the Governor. 41 Sec. 9. “Summerlin Production Studios Project” or “Project” 42 means a project for the construction of a development consisting of 43 facilities, buildings, structures and other infrastructure for the 44 production of qualified productions at the site of real property 45 – 7 – - *AB5* burdened by the following development agreements and owned by 1 the master developer under such development agreements or such 2 master developer’s affiliated entities: 3 1. Development agreement between Clark County and Howard 4 Hughes Properties, Limited Partnership dated February 7, 1996, as 5 amended, and recorded on September 4, 1996, in Book 960904 as 6 Instrument No. 01725 and re-recorded on September 10, 1996, in 7 Book 960910 as Instrument No. 01379 in the official records of the 8 Clark County, Nevada Recorder’s Office. 9 2. Development agreement between the City of Las Vegas and 10 Howard Hughes Properties, Limited Partnership, recorded on 11 November 21, 1997, in Book 971121 as Instrument No. 00839, as 12 amended, in the official records of the Clark County, Nevada 13 Recorder’s Office. 14 Sec. 10. 1. Not later than 120 days after the effective date of 15 this act, the Office shall enter into a development agreement with 16 the lead participant of the Summerlin Production Studios Project, 17 unless the Office agrees to extend this period by not more than 60 18 days. The development agreement entered into pursuant to this 19 section: 20 (a) Must require the Project to: 21 (1) Except as otherwise provided in subsections 2 and 3, not 22 later than: 23 (I) December 31, 2028, make a new capital investment in 24 this State, excluding any hotel and any business required to hold a 25 license issued pursuant to chapter 463 of NRS, of at least 26 $400,000,000. 27 (II) June 30, 2030, make an aggregate new capital 28 investment in this State, of at least $900,000,000. For the purposes 29 of determining the amount of new capital investment pursuant to 30 this sub-subparagraph, any new capital investment by a third party 31 who purchases property or enters into a ground lease for property 32 within the site of the Project must be credited toward meeting the 33 requirement of this sub-subparagraph. The Office shall credit toward 34 meeting the requirement of this sub-subparagraph 50 percent of the 35 new capital investment made at the Downtown Summerlin site 36 during the period beginning on the date of the execution of the 37 development agreement and ending on June 30, 2030, if the Board 38 of Economic Development determines that the new capital 39 investment is consistent with the State Plan for Economic 40 Development developed by the Executive Director of the Office of 41 Economic Development pursuant to subsection 2 of NRS 231.053 42 and the intent of the Legislature as expressed in sections 2 and 3 of 43 this act. 44 – 8 – - *AB5* (III) June 30, 2033, make an aggregate new capital 1 investment in this State of at least $1,400,000,000. For the purposes 2 of determining the amount of new capital investment pursuant to 3 this sub-subparagraph, any new capital investment by a third party 4 who purchases property or enters into a ground lease for property 5 within the site of the Project must be credited toward meeting the 6 requirement of this sub-subparagraph. The Office shall credit toward 7 meeting the requirement of this sub-subparagraph 50 percent of the 8 new capital investment made at the Downtown Summerlin site 9 during the period beginning on the date of the execution of the 10 development agreement and ending on June 30, 2033, if the Board 11 of Economic Development determines that the new capital 12 investment is consistent with the State Plan for Economic 13 Development developed by the Executive Director of the Office of 14 Economic Development pursuant to subsection 2 of NRS 231.053 15 and the intent of the Legislature as expressed in sections 2 and 3 of 16 this act. 17 (IV) June 30, 2039, make an aggregate new capital 18 investment in this State of at least $1,800,000,000. For the purposes 19 of determining the amount of new capital investment pursuant to 20 this sub-subparagraph, any new capital investment by a third party 21 who purchases property or enters into a ground lease for property 22 within the site of the Project must be credited toward meeting the 23 requirement of this sub-subparagraph. The Office shall credit toward 24 meeting the requirement of this sub-subparagraph 50 percent of the 25 new capital investment made at the Downtown Summerlin site 26 during the period beginning on the date of the execution of the 27 development agreement and ending on June 30, 2039, if the Board 28 of Economic Development determines that the new capital 29 investment is consistent with the State Plan for Economic 30 Development developed by the Executive Director of the Office of 31 Economic Development pursuant to subsection 2 of NRS 231.053 32 and the finding and intent of the Legislature as expressed in sections 33 2 and 3 of this act. 34 (2) Not later than December 31, 2028, contribute at least 35 $8,000,000 to Nevada Partners, Inc. to support the construction and 36 operation of the Nevada Partners Vocational Training Studio and to 37 the maximum extent practicable, collaborate with Nevada Partners, 38 Inc. to ensure that not later than December 31, 2030, construction of 39 the Nevada Partners Vocational Training Studio has been completed 40 and the Nevada Partners Vocational Training Studio is operational. 41 (3) If the Nevada Partners Vocational Training Studio is not 42 completed and operational before January 1, 2031, ensure that an 43 equivalent facility is constructed and operational before that date. 44 – 9 – - *AB5* (4) Except as otherwise provided in subparagraph (5) and 1 subsection 6, guarantee that for the period beginning on: 2 (I) July 1, 2029, and ending on June 30, 2035, the Project 3 will generate, for each period consisting of 2 fiscal years during that 4 time, not less than $600,000,000 of direct production expenditures. 5 (II) July 1, 2035, and ending on June 30, 2044, the Project 6 will generate, for each period consisting of 3 fiscal years during that 7 time, not less than $900,000,000 of direct production expenditures. 8 (5) Except as otherwise provided in this subparagraph, 9 require that if, during any period described in subparagraph (4), the 10 amount of direct production expenditures exceeds the amount 11 required by subparagraph (4) for that period, the excess amount 12 must be carried forward and used to offset any shortage in satisfying 13 any requirement set forth in subparagraph (4) in any subsequent 14 period. The total amount of excess direct production expenditures 15 for a period described in subparagraph (4) that may be used to offset 16 a shortfall in the amount of direct production expenditures required 17 for any subsequent period described in subparagraph (4) cannot 18 exceed $200,000,000. 19 (6) Not later than 5 years after the Office and the lead 20 participant execute the development agreement, make a contribution 21 of at least $6,000,000 to the College of Southern Nevada for its 22 Eastside Education and Training Center to support education and 23 workforce training related to the production of qualified productions 24 that are film or television productions and for child care for 25 participants in such education and workforce training programs. 26 (7) If the Eastside Education and Training Center described 27 in subparagraph (6) is not completed and operational before 28 January 1, 2031, ensure that an equivalent facility is constructed and 29 operational before that date. 30 (8) Provide written notice to the Office within 30 days after 31 the applicable deadline for completing a requirement set forth in 32 subparagraphs (1) to (7), inclusive, which must state whether the 33 requirement has been met. Upon receipt of the written notice, 34 the Office shall make a final determination, in writing, of whether 35 the requirement has been met and provide that determination to the 36 lead participant of the Project. If the Office determines that the 37 requirement has been met, the Office shall establish the date on 38 which the requirement was met. 39 (b) Must establish the minimum amount of square feet of 40 building space at the Project to be used for the various components 41 of the production of qualified productions. 42 (c) Must establish the minimum number of acres of real property 43 that will be a part of the Project. 44 – 10 – - *AB5* (d) May include such other provisions, not inconsistent with 1 law, concerning the development of the Project and the issuance of 2 film infrastructure transferable tax credits pursuant to sections 4 to 3 20, inclusive, of this act, as agreed to by the Office and the lead 4 participant. 5 2. As the Executive Director of the Office deems necessary or 6 advisable, the Executive Director may modify any requirement for 7 new capital investment set forth in subparagraph (1) of paragraph 8 (a) of subsection 1 by extending the date by which any new capital 9 investment set forth in those provisions must be made. 10 3. If the Office determines that the Project has not met a 11 requirement for capital investment included in the development 12 agreement pursuant to subparagraph (1) of paragraph (a) of 13 subsection 1, the Office must document its determination in writing, 14 notify the lead participant, in writing, of its determination and 15 impose a penalty on the Project in an amount not to exceed the 16 amount of the deficiency. The Project may cure the deficiency by 17 making the required capital investment in the element of the Project 18 for which the requirement for capital investment was not met not 19 later than 2 years after the end of the period for which the 20 requirement for capital investment was not met, in an amount 21 necessary to satisfy the requirement for capital investment in an 22 element of the Project that was not met. If the deficiency is: 23 (a) Cured within the cure period, 100 percent of the amount of 24 the penalty must be discharged. 25 (b) Not cured within that cure period, the Office must record a 26 lien on any land within the Project that is undeveloped or has not 27 been developed in accordance with the findings and intent of the 28 Legislature as expressed in sections 2 and 3 of this act, to secure 29 payment of such penalty, subject to the limitations set forth in 30 subsection 4. Any penalty, and the lien securing the payment of such 31 penalty, must be discharged as follows: 32 (1) If the requirement for capital investment which was not 33 met is satisfied not later than 1 year after the expiration of the cure 34 period, 90 percent of the amount of the penalty, and the lien 35 securing the payment of the penalty, must be discharged. 36 (2) If the requirement for capital investment which was not 37 met is satisfied more than 1 year, but not later than 2 years, after the 38 expiration of the cure period, 70 percent of the amount of the 39 penalty, and the lien securing the payment of the penalty, must be 40 discharged. 41 (3) If the requirement for capital investment which was not 42 met is satisfied more than 2 years, but not later than 3 years, after 43 the expiration of the cure period, 50 percent of the amount of the 44 – 11 – - *AB5* penalty, and the lien securing the payment of the penalty, must be 1 discharged. 2 (4) If the requirement for capital investment which was not 3 met is satisfied more than 3 years, but not later than 4 years, after 4 the expiration of the cure period, 30 percent of the amount of the 5 penalty, and the lien securing the payment of the penalty, must be 6 discharged. 7 (5) If the requirement for capital investment which was not 8 met is satisfied more than 4 years, but not later than 5 years, after 9 the expiration of the cure period, 10 percent of the amount of the 10 penalty, and the lien securing the payment of the penalty, must be 11 discharged. 12 4. Only one lien may by recorded pursuant to subsection 3 and 13 such a lien: 14 (a) Must not, at any time, exceed the lesser of the amount of the 15 deficiency or 100 percent of the appraised value of the remaining 16 land within the Project that is undeveloped or has not been 17 developed in accordance with the findings and intent of the 18 Legislature as expressed in sections 2 and 3 of this act. 19 (b) May not be recorded on any completed portion of the 20 Project. 21 (c) May be modified, replaced or reissued to secure payment of 22 the most current amount of any penalty imposed pursuant to 23 subsection 3 but any such lien is subject to the limitations of this 24 subsection. 25 5. If the Office determines that the amount of direct production 26 expenditures is less than $150,000,000 in any fiscal year 27 commencing on or after July 1, 2029, and before July 1, 2044, the 28 Office must notify the Project, in writing, of its determination and 29 impose a penalty on the Project in an amount equal to the lesser of 30 $10,000,000 or the amount determined by: 31 (a) Calculating 50 percent of the sum of the film infrastructure 32 transferable tax credits authorized for approval pursuant to section 33 15 of this act for that fiscal year and the immediately preceding 34 fiscal year; 35 (b) Calculating a percentage by dividing the difference between 36 the $150,000,000 and the actual amount, as determined by the 37 Office, of direct production expenditures, by $150,000,000; and 38 (c) Multiplying the percentage calculated pursuant to paragraph 39 (b) by the amount calculated pursuant to paragraph (a). 40  Any penalty paid pursuant to this subsection must be applied to 41 reduce the amount of any penalty imposed pursuant to subsection 6. 42 6. If the Office determines that the Project has not met a 43 requirement for direct production expenditures included in 44 the development agreement pursuant to subparagraph (4) of 45 – 12 – - *AB5* paragraph (a) of subsection 1, the Project must pay to the Office a 1 penalty in an amount determined as follows: 2 (a) If the actual amount of direct production expenditures is 3 more than 2 percent and not more than 5 percent less than the 4 applicable requirement for direct production expenditures included 5 in the development agreement pursuant to subparagraph (4) of 6 paragraph (a) of subsection 1, a penalty in the amount of 7 $2,000,000. 8 (b) If the actual amount of direct production expenditures is 9 more than 5 percent and not more than 10 percent less than the 10 applicable requirement for direct production expenditures included 11 in the development agreement pursuant to subparagraph (4) of 12 paragraph (a) of subsection 1, a penalty in the amount of 13 $5,000,000. 14 (c) If the actual amount of direct production expenditures is 15 more than 10 percent and not more than 20 percent less than the 16 applicable requirement for direct production expenditures included 17 in the development agreement pursuant to subparagraph (4) of 18 paragraph (a) of subsection 1, a penalty in the amount of 19 $10,000,000. 20 (d) If the actual amount of direct production expenditures is 21 more than 20 percent and not more than 30 percent less than the 22 applicable requirement for direct production expenditures included 23 in the development agreement pursuant to subparagraph (4) of 24 paragraph (a) of subsection 1, a penalty in the amount of 25 $20,000,000. 26 (e) If the actual amount of direct production expenditures is 27 more than 30 percent and not more than 40 percent less than the 28 applicable requirement for direct production expenditures included 29 in the development agreement pursuant to subparagraph (4) of 30 paragraph (a) of subsection 1, a penalty in the amount of 31 $30,000,000. 32 (f) If the actual amount of direct production expenditures is 33 more than 40 percent and not more than 50 percent less than the 34 applicable requirement for direct production expenditures included 35 in the development agreement pursuant to subparagraph (4) of 36 paragraph (a) of subsection 1, a penalty in the amount of 37 $40,000,000. 38 (g) If the actual amount of direct production expenditures is 39 more than 50 percent less than the applicable requirement for direct 40 production expenditures included in the development agreement 41 pursuant to subparagraph (4) of paragraph (a) of subsection 1, a 42 penalty in the amount of $50,000,000. 43 7. The Office may reduce, or waive, any penalty imposed 44 pursuant to subsections 3 to 6, inclusive, if, upon written request of 45 – 13 – - *AB5* the lead participant, the Office determines that the failure to meet a 1 requirement for which a penalty may be imposed was caused by 2 extraordinary circumstances beyond the control of the Project and 3 reasonable, documented and good-faith efforts were made to satisfy 4 the requirement. For the purposes of this subsection, “extraordinary 5 circumstances”: 6 (a) Means natural disasters, labor strikes, significant disruptions 7 in material supply chains, substantial economic or geopolitical 8 shocks, government-mandated closures, delays in obtaining any 9 approval of a governmental entity needed for the Project that are not 10 caused by the Project or other events in the nature of force majeure 11 that materially impair the ability to carry out development and 12 construction activities. 13 (b) Does not include ordinary market fluctuations, internal 14 project scheduling decisions or changes in business strategy. 15 8. Before taking any action or declining any request for an 16 action authorized by subsection 7, the Executive Director of the 17 Office shall: 18 (a) Consider any documentation submitted by the production 19 company related to the action under consideration; and 20 (b) Make the following determinations in writing: 21 (1) That good cause exists to take such action; and 22 (2) That the action is reasonable based on the circumstances 23 of the underlying incident on which the reduction or withholding of 24 film infrastructure transferable tax credits authorized pursuant to 25 subsection 4 is based. 26 9. Any penalty paid to the Office pursuant to subsections 3 to 27 6, inclusive, must be deposited with the State Treasurer for credit to 28 the State General Fund. 29 10. The Office shall not approve any abatement, partial 30 abatement or exemption from taxes, or any other incentive for 31 economic development, other than film infrastructure transferable 32 tax credits pursuant to sections 4 to 20, inclusive, of this act or 33 noninfrastructure transferable tax credits pursuant to NRS 360.758 34 to 360.7598, inclusive, for the Summerlin Production Studios 35 Project if the Project has entered into a development agreement with 36 the Office pursuant to this section. 37 11. As used in this section: 38 (a) “Direct production expenditures” means expenditures in this 39 State: 40 (1) By a production company that is affiliated with the lead 41 participant and is producing, in whole or in part, a qualified 42 production at the Project; 43 (2) That are direct expenditures on a qualified production 44 that is produced, in whole or in part, at the Project; and 45 – 14 – - *AB5* (3) That meet the criteria to be a qualified direct production 1 expenditure pursuant to subsection 1 of section 12 of this act, 2 regardless of whether the production company applies for or 3 receives film transferable tax credits for the qualified production. 4 (b) “Hotel” means a building occupied or intended to be 5 occupied for compensation, as the temporary residence for transient 6 guests, primarily persons who have residence elsewhere. A hotel has 7 an interior hall and lobby with access to each room from the interior 8 hall or lobby. 9 Sec. 11. 1. A production company that is located at the 10 Summerlin Production Studios Project and that produces, in whole 11 or in part, a qualified production at the Project may, on or after 12 December 1, 2026, apply to the Office for a certificate of eligibility 13 for film infrastructure transferable tax credits for any qualified direct 14 production expenditures. The film infrastructure transferable tax 15 credits may be applied to: 16 (a) Any tax imposed by chapter 363A or 363B of NRS; 17 (b) The gaming license fee imposed by the provisions of 18 NRS 463.370; 19 (c) Any tax imposed by chapter 680B of NRS; or 20 (d) Any combination of the fees and taxes described in 21 paragraphs (a), (b) and (c). 22 2. Except as otherwise provided in section 15 of this act, the 23 Office shall approve an application for a certificate of eligibility for 24 film infrastructure transferable tax credits if the Office finds that the 25 production company is producing the qualified production, in whole 26 or in part, at the Summerlin Production Studios Project and the 27 production company qualifies for the film infrastructure transferable 28 tax credits pursuant to subsection 3. If the Office approves the 29 application, the Office shall: 30 (a) Calculate the estimated amount of film infrastructure 31 transferable tax credits that may be issued for the qualified 32 production pursuant to sections 12 to 15, inclusive, of this act; and 33 (b) Immediately forward a copy of the certificate of eligibility 34 which identifies the estimated amount of tax credits to: 35 (1) The applicant; 36 (2) The lead participant; 37 (3) The Department of Taxation; and 38 (4) The Nevada Gaming Control Board. 39 3. To be eligible for film infrastructure transferable tax credits 40 pursuant to this section, the production company must: 41 (a) Before the beginning of principal photography, submit to the 42 Office an application for a certificate of eligibility that meets the 43 requirements of subsection 4; 44 – 15 – - *AB5* (b) Submit to the Office with the application for a certificate of 1 eligibility: 2 (1) Written documentation from the lead participant that 3 affirms that the production company is located at the Summerlin 4 Production Studios Project and is producing, in whole or in part, a 5 qualified production at the Project; 6 (2) Proof that 70 percent or more of the funding for the 7 qualified production has been obtained; and 8 (3) Proof that: 9 (I) At least 50 percent of the total principal photography 10 days of the qualified production will take place in this State; or 11 (II) The qualified production will incur qualified direct 12 production expenditures in this State of at least $5,000,000; 13 (c) Satisfy the applicable requirement for the employment of 14 Nevada residents as below-the-line personnel of the qualified 15 production, as set forth in section 13 of this act; 16 (d) Provide to the Office: 17 (1) With the application for a certificate of eligibility, proof 18 that the applicant has in place a workforce plan for the qualified 19 production that outlines specific goals for: 20 (I) Hiring a workforce that reflects the diversity of this 21 State, including, without limitation, the age, gender, gender identity 22 or expression, as defined in NRS 0.034, sexual orientation, ethnic 23 and geographic diversity of this State; 24 (II) Using vendors that are minority-owned business 25 enterprises or woman-owned business enterprises; and 26 (III) Achieving the requirements set forth in subsection 2 27 of section 13 of this act; and 28 (2) Not later than 365 days after the completion of principal 29 photography of the qualified production, unless the Office agrees to 30 extend this period by not more than 180 days, a final assessment of 31 the workforce plan that includes documentation on whether the 32 production met or made good faith efforts to achieve the goals set 33 forth in the workforce plan; 34 (e) Not later than 365 days after the completion of principal 35 photography of the qualified production or, if any direct production 36 expenditures for postproduction will be incurred in this State, not 37 later than 365 days after the completion of postproduction, unless 38 the Office agrees to extend this period by not more than 180 days, 39 provide the Office with an audit of the qualified production that 40 includes: 41 (1) An itemized report of qualified direct production 42 expenditures which: 43 (I) Shows that the qualified production incurred qualified 44 direct production expenditures of $500,000 or more; 45 – 16 – - *AB5* (II) If the production company complied with the 1 requirement of subparagraph (3) of paragraph (b) by providing to 2 the Office with the application for a certificate of eligibility proof 3 that the qualified production would incur qualified direct production 4 expenditures in this State of at least $5,000,000, shows that the 5 qualified production incurred qualified direct production 6 expenditures in this State of at least $5,000,000; and 7 (III) Is certified by an independent certified public 8 accountant in this State who is approved by the Office; 9 (2) A list of each contractor, vendor, personal service 10 corporation or loan-out company or other business engaged by the 11 production company to provide goods or perform services in an 12 aggregate amount of at least $10,000 or more in this State in 13 connection with the qualified production and the amount paid to 14 each contractor, vendor, personal service corporation or loan-out 15 company or other business for such goods or services; and 16 (3) Proof that the production company secured all licenses 17 and registrations required to do business in each location in this 18 State at which the qualified production was produced; 19 (f) Pay the cost of the audit required by paragraph (e); 20 (g) Enter into a written agreement with the Office that requires 21 the production company to include: 22 (1) In the end screen credits of the qualified production, a 23 logo of this State provided by the Office which indicates that the 24 qualified production was filmed or otherwise produced in Nevada; 25 or 26 (2) If the qualified production does not have end screen 27 credits, another acknowledgment in the final version of the qualified 28 production that indicates that the qualified production was filmed or 29 otherwise produced in Nevada or any alternative marketing 30 promotion acceptable to the Office; and 31 (h) Enter into a written agreement with the Office that requires 32 the production company to transmit to each contractor, vendor, 33 personal service corporation or loan-out company or other business 34 engaged by the production company to provide goods or perform 35 services in an aggregate amount of at least $10,000 or more in this 36 State in connection with a qualified production, not later than 30 37 calendar days after the production company pays the contractor, 38 vendor, personal service corporation or loan-out company or other 39 business, a notification that includes: 40 (1) A statement that Nevada imposes: 41 (I) A tax on wages paid by certain employers pursuant to 42 chapters 363A and 363B of NRS; and 43 (II) A commerce tax on certain business entities pursuant 44 to chapter 363C of NRS; and 45 – 17 – - *AB5* (2) Instructions for obtaining additional information from the 1 Department of Taxation regarding the collection and remittance of 2 taxes pursuant to chapters 363A, 363B and 363C of NRS. 3 4. An application for a certificate of eligibility submitted 4 pursuant to subsection 3 must contain: 5 (a) A script, storyboard or synopsis of the qualified production; 6 (b) The names of the production company, producer, director 7 and proposed cast; 8 (c) An estimated timeline to complete the qualified production; 9 (d) An estimate of the percentage of principal photography days 10 of the qualified production that will take place in this State and 11 outside this State; 12 (e) An insurance certificate, binder or quote for general liability 13 insurance of $1,000,000 or more; 14 (f) The business address of the production company; 15 (g) The written documentation from the lead participant that is 16 required by subparagraph (1) of paragraph (b) of subsection 3; 17 (h) The workforce plan of the production company required by 18 subparagraph (1) of paragraph (c) of subsection 3; and 19 (i) Proof that the qualified production meets any applicable 20 requirements relating to workers’ compensation insurance. 21 5. Within 45 business days after receipt of a final assessment of 22 the workforce plan provided by a production company pursuant to 23 subparagraph (2) of paragraph (d) of subsection 3, an audit provided 24 by a production company pursuant to paragraph (e) of subsection 3 25 and any other accountings or other information required by the 26 Office, the Office shall determine whether to certify the audit and 27 make a final determination of whether a certificate of film 28 infrastructure transferable tax credits will be issued. If the Office 29 certifies the audit, determines that all other requirements for the film 30 infrastructure transferable tax credits have been met and determines 31 that a certificate of film infrastructure transferable tax credits will be 32 issued, the Office shall notify the production company and the lead 33 participant that the film infrastructure transferable tax credits will be 34 issued. 35 6. Within 90 days after the receipt of the notice, the production 36 company shall make an irrevocable declaration of the amount of 37 film infrastructure transferable tax credits that will be applied to 38 each fee or tax set forth in subsection 1, thereby accounting for all 39 of the credits that will be issued in relation to the qualified 40 production. 41 7. Upon receipt of the declaration required by subsection 6, the 42 Office shall issue to the production company a certificate of film 43 infrastructure transferable tax credits in the amount approved by the 44 Office for the fees or taxes included in the declaration of the 45 – 18 – - *AB5* production company. The film infrastructure transferable tax credits 1 issued under the certificate may not be used before July 1, 2029. 2 The production company shall notify the Office upon transferring 3 any of the film infrastructure transferable tax credits. The Office 4 shall notify the Department of Taxation and the Nevada Gaming 5 Control Board of all film infrastructure transferable tax credits 6 issued, segregated by each fee or tax set forth in subsection 1, and 7 the amount of any film infrastructure transferable tax credits 8 transferred. 9 8. Within 60 days after the production company uses any film 10 infrastructure transferable tax credits issued pursuant to subsection 7 11 or notifies the Office of any transfer of film infrastructure 12 transferable tax credits issued pursuant to subsection 7, the 13 production company shall pay to the Office an amount of money 14 equal to 1 percentage point of the percentage of qualified direct 15 production expenditures used to calculate the amount of film 16 infrastructure transferable tax credits issued to the production 17 company pursuant to subsection 7. The Office shall deposit any 18 money received pursuant to this subsection with the State Treasurer 19 for credit to the Account for Nevada Film, Media and Related 20 Technology Education and Vocational Training created by section 21 38 of this act. A payment made pursuant to this subsection shall be 22 deemed to be a payment made from film infrastructure transferable 23 tax credits which would have been authorized and approved for the 24 production company if a payment pursuant to this section were not 25 required. 26 9. An applicant for film infrastructure transferable tax credits 27 pursuant to this section shall, upon the request of the Executive 28 Director of the Office, furnish the Executive Director with copies of 29 all records necessary to verify that the applicant meets the 30 requirements of subsection 3. 31 10. The Office: 32 (a) Shall adopt regulations prescribing: 33 (1) Any additional qualified expenditures or production costs 34 that may serve as the basis for film infrastructure transferable tax 35 credits pursuant to section 12 of this act; 36 (2) The application review process; 37 (3) That a production for which records are required by 18 38 U.S.C. § 2257 to be maintained with respect to any performer in 39 such production is not eligible for film infrastructure transferable tax 40 credits; and 41 (4) Any necessary provisions to ensure compliance with the 42 requirements of paragraph (d) of subsection 3 relating to workforce 43 plans; and 44 – 19 – - *AB5* (b) May adopt any other regulations that are necessary to ensure 1 that the provisions of sections 2 to 20, inclusive, of this act are 2 carried out in a manner that is reasonable and customary in the 3 industry for the production of qualified productions. 4 11. The Nevada Tax Commission and the Nevada Gaming 5 Commission: 6 (a) Shall adopt regulations prescribing the manner in which film 7 infrastructure transferable tax credits will be administered. 8 (b) May adopt any other regulations that are necessary for the 9 Department of Taxation and the Nevada Gaming Control Board, as 10 applicable, to carry out the functions performed by each entity 11 pursuant to the provisions of sections 2 to 20, inclusive, of this act. 12 Sec. 12. 1. Except as otherwise provided in this subsection 13 and subsection 3, qualified direct production expenditures that may 14 serve as a basis for film infrastructure transferable tax credits issued 15 pursuant to section 11 of this act must: 16 (a) Be expenditures made during the period in which a qualified 17 production is produced; 18 (b) Be customary and reasonable; 19 (c) Relate to a category of qualified expenditures and costs listed 20 in subsection 2; and 21 (d) Be: 22 (1) Purchases, rentals or leases of tangible personal property 23 or services from a Nevada business. 24 (2) The payroll, including wages, salaries and fringe benefits, 25 for Nevada residents or other personnel for labor or services 26 provided in this State. The payroll, including wages, salaries and 27 fringe benefits, for Nevada residents or other personnel for labor or 28 services provided outside this State must not be a qualified direct 29 production expenditure. 30 (3) Compensation, including wages, salaries, fringe benefits 31 and other payments, paid to a bona fide third-party service provider, 32 or to another person receiving the compensation on behalf of the 33 bona fide third-party service provider, for labor or services provided 34 in Nevada. Compensation, including wages, salaries, fringe benefits 35 and other payments, paid to a bona fide third-party service provider, 36 or to another person receiving the compensation on behalf of the 37 bona fide third-party service provider, for labor or services provided 38 outside Nevada must not be a qualified direct production 39 expenditure. 40 2. Expenditures or costs that may serve as a basis for 41 calculating film infrastructure transferable tax credits must relate to: 42 (a) Set construction and operation; 43 (b) Wardrobe and makeup; 44 (c) Photography, sound and lighting; 45 – 20 – - *AB5* (d) Filming, film processing and film editing; 1 (e) The rental or leasing of facilities, equipment and vehicles; 2 (f) Food and lodging; 3 (g) Editing, sound mixing, special effects, visual effects and 4 other postproduction services; 5 (h) Payment for goods or services provided by a Nevada 6 business; 7 (i) The design, construction, improvement or repair of property, 8 infrastructure, equipment or a production or postproduction facility; 9 (j) State and local government taxes to the extent not included as 10 part of another cost reported pursuant to this section; or 11 (k) Any other transaction, service or activity authorized in 12 regulations adopted by the Office pursuant to section 11 of this act. 13 3. Expenditures and costs: 14 (a) Related to: 15 (1) The acquisition, transfer or use of film infrastructure 16 transferable tax credits; 17 (2) Marketing and distribution; 18 (3) Financing, depreciation and amortization; 19 (4) The payment of any profits as a result of the qualified 20 production; 21 (5) The payment of the cost of the audit required by section 22 11 of this act; or 23 (6) The payment for any goods or services that are not 24 directly attributable to the qualified production; 25 (b) For which reimbursement is received, or for which 26 reimbursement is reasonably expected to be received; 27 (c) Which are paid to a joint venturer or a parent, subsidiary or 28 other affiliate of the production company, unless the amount paid 29 represents the fair market value, which may be represented by a rate 30 sheet, of the purchase, rental or lease of the property or services for 31 which payment is made; 32 (d) Which have been previously claimed as a basis for film 33 infrastructure transferable tax credits issued pursuant to section 11 34 of this act or noninfrastructure transferable tax credits issued 35 pursuant to NRS 360.759, 36  are not qualified direct production expenditures and are not 37 eligible to serve as a basis for film infrastructure transferable tax 38 credits issued pursuant to section 11 of this act. 39 4. If any tangible personal property is acquired by a Nevada 40 business from a vendor outside this State for immediate resale, 41 rental or lease to a production company that produces a qualified 42 production, expenditures incurred by the production company for 43 the purchase, rental or lease of the property are qualified direct 44 production expenditures only if: 45 – 21 – - *AB5* (a) The Nevada business regularly deals in property of that kind; 1 (b) The expenditures are otherwise qualified direct production 2 expenditures under the provisions of this section; and 3 (c) Not more than 50 percent of the expenditures incurred by the 4 production company to purchase, rent or lease tangible personal 5 property for the qualified production are expenditures incurred for 6 the purchase, rental or lease of tangible personal property in the 7 manner described in this subsection. For the purposes of the 8 calculation required by this paragraph, the cost of any property that 9 remains an asset of the Nevada business after production of the 10 qualified production has concluded must not be included in the 11 calculation as property purchased, rented or leased in the manner 12 described in this subsection. 13 5. If any tangible personal property is acquired by the 14 production company as an asset, the calculation of the costs of the 15 tangible personal property that constitute a qualified direct 16 production expenditure must be performed in the manner prescribed 17 by the Office by regulation. 18 6. As used in this section: 19 (a) “Bona fide third-party service provider” means a qualified 20 entity, a qualified individual or any other person determined by the 21 Office to be providing necessary and appropriate labor or services 22 directly related to the production. 23 (b) “Fringe benefits” means employee expenses paid by an 24 employer for the use of the employee’s services, including, without 25 limitation, payments made to a governmental entity, union dues, 26 health insurance premiums, payments to a pension plan and 27 payments for workers’ compensation insurance. 28 (c) “Qualified entity” means an entity that is: 29 (1) A personal service corporation, as defined in 26 U.S.C. § 30 269A(b)(1), a payroll services corporation or any entity receiving 31 payments for services performed in this State by a qualified 32 individual; and 33 (2) Registered to conduct business pursuant to the laws of 34 this State. 35 (d) “Qualified individual” means any natural person who 36 performs services during the production period in an activity related 37 to the production of a qualified production. The term does not 38 include: 39 (1) Any natural person related to the production company or 40 an employee as described in subparagraph (A), (B) or (C) of 26 41 U.S.C. § 51(i)(1). 42 (2) Any 5-percent owner, as defined in 26 U.S.C. § 43 416(i)(1)(B), of the production company. 44 – 22 – - *AB5* Sec. 13. 1. Except as otherwise provided in subsections 3, 4 1 and 5, the Office shall not issue film infrastructure transferable tax 2 credits to a production company pursuant to section 11 of this 3 act unless, in addition to meeting any other requirements for 4 the issuance of film infrastructure transferable tax credits, the 5 production company satisfies the applicable requirement for the 6 employment of Nevada residents as below-the-line personnel of 7 the qualified production as follows: 8 (a) For a qualified production that submits an application for a 9 certificate of eligibility for film infrastructure transferable tax 10 credits pursuant to section 11 of this act on or after July 1, 2026, and 11 before July 1, 2027, at least 10 percent of the below-the-line 12 personnel of the qualified production are Nevada residents. 13 (b) For a qualified production that submits an application for a 14 certificate of eligibility for film infrastructure transferable tax 15 credits pursuant to section 11 of this act on or after July 1, 2027, and 16 before July 1, 2028, at least 15 percent of the below-the-line 17 personnel of the qualified production are Nevada residents. 18 (c) For a qualified production that submits an application for a 19 certificate of eligibility for film infrastructure transferable tax 20 credits pursuant to section 11 of this act on or after July 1, 2028, and 21 before July 1, 2029, at least 20 percent of the below-the-line 22 personnel of the qualified production are Nevada residents. 23 (d) For a qualified production that submits an application for a 24 certificate of eligibility for film infrastructure transferable tax 25 credits pursuant to section 11 of this act on or after July 1, 2029, and 26 before July 1, 2030, at least 25 percent of the below-the-line 27 personnel of the qualified production are Nevada residents. 28 (e) For a qualified production that submits an application for a 29 certificate of eligibility for film infrastructure transferable tax 30 credits pursuant to section 11 of this act on or after July 1, 2030, and 31 before July 1, 2031, at least 30 percent of the below-the-line 32 personnel of the qualified production are Nevada residents. 33 (f) For a qualified production that submits an application for a 34 certificate of eligibility for film infrastructure transferable tax 35 credits pursuant to section 11 of this act on or after July 1, 2031, and 36 before July 1, 2032, at least 40 percent of the below-the-line 37 personnel of the qualified production are Nevada residents. 38 (g) For a qualified production that submits an application for a 39 certificate of eligibility for film infrastructure transferable tax 40 credits pursuant to section 11 of this act on or after July 1, 2032, and 41 before July 1, 2038, at least 50 percent of the below-the-line 42 personnel of the qualified production are Nevada residents. 43 (h) For a qualified production that submits an application for a 44 certificate of eligibility for film infrastructure transferable tax 45 – 23 – - *AB5* credits pursuant to section 11 of this act on or after July 1, 2038, and 1 before July 1, 2044, at least 60 percent of the below-the-line 2 personnel of the qualified production are Nevada residents. 3 2. To satisfy the applicable requirement for the employment of 4 Nevada residents as below-the-line personnel of the qualified 5 production, as set forth in subsection 1, the production company 6 producing the qualified production must satisfy the applicable 7 requirement under both of the following calculations: 8 (a) The percentage calculated by dividing a numerator 9 consisting of the number of workdays worked by Nevada residents 10 who are below-the-line personnel, excluding background actors, for 11 labor or services provided in this State by a denominator consisting 12 of the number of workdays worked by all below-the-line personnel, 13 excluding background actors, for labor or services provided in this 14 State, must exceed the applicable requirement set forth in subsection 15 1; and 16 (b) Except as otherwise provided in subsections 3 and 4, the 17 percentage calculated by dividing a numerator consisting of the 18 wages and salaries paid to Nevada residents who are below-the-line 19 personnel, excluding background actors, for labor or services 20 provided in this State by a denominator consisting of the total wages 21 and salaries paid to all below-the-line personnel, excluding 22 background actors, for labor or services provided in this State, must 23 exceed the applicable requirement set forth in subsection 1. 24 3. Except as otherwise provided in subsection 4, for the 25 purposes of the calculation required by paragraph (b) of subsection 26 2, wages and salaries paid to persons employed as one of each of the 27 following below-the-line personnel must not be included in the 28 calculation of the denominator as total wages and salaries paid to all 29 below-the-line personnel for labor or services provided in this State: 30 (a) Director of photography; 31 (b) First assistant director; 32 (c) Editor; 33 (d) VFX supervisor; 34 (e) Costume designer; 35 (f) Costume supervisor; 36 (g) Production designer; 37 (h) Unit production manager; 38 (i) Construction coordinator; 39 (j) Set decorator; 40 (k) Supervising art director; 41 (l) Financial controller; 42 (m) Special effects supervisor; 43 (n) Art director; 44 (o) Stunt coordinator; 45 – 24 – - *AB5* (p) Makeup artist; 1 (q) Key hairstylist; 2 (r) Propmaster; 3 (s) Gaffer; 4 (t) Camera operator or steadicam operator; 5 (u) Sound mixer; 6 (v) Choreographer; and 7 (w) Any other position deemed by the Executive Director to be 8 specialized. 9 4. A calculation required by paragraph (b) of subsection 2 10 using a denominator adjusted pursuant to subsection 3 must not 11 result in the applicable requirement set forth in subsection 1 being 12 less than 80 percent of that applicable requirement. 13 5. A production company that has applied for a certificate of 14 eligibility for film infrastructure tax credits pursuant to section 11 15 of this act may, at any time, apply to the Executive Director of 16 the Office for a waiver of the applicable requirement for the 17 employment of Nevada residents as below-the-line personnel of the 18 qualified production, as set forth in subsection 1. The Executive 19 Director of the Office shall approve such a waiver if the production 20 company provides evidence satisfactory to the Executive Director 21 that: 22 (a) A good faith effort was made to identify and hire Nevada 23 residents to satisfy the applicable requirement of paragraph (b) of 24 subsection 2; and 25 (b) There is an insufficient number of Nevada residents is 26 available and qualified for employment as below-the-line personnel 27 of the qualified production. 28 Sec. 14. 1. Except as otherwise provided in subsections 2 29 and 4 and section 15 of this act, the base amount of film 30 infrastructure transferable tax credits issued to an eligible 31 production company pursuant to section 11 of this act must equal 30 32 percent of the qualified direct production expenditures. 33 2. Except as otherwise provided in subsection 3 and section 15 34 of this act, if the production company submitted the application for 35 the certificate of eligibility for film infrastructure transferable tax 36 credits pursuant to section 11 of this act on or after a date that is 37 more than 36 months after the date on which the Office adopts the 38 regulations required by section 11 of this act, the Office shall reduce 39 the cumulative amount of film infrastructure transferable tax credits 40 that are calculated pursuant to this section by 5 percent if the final 41 assessment of the workforce plan submitted by the production 42 company for the qualified production pursuant to paragraph (d) of 43 subsection 3 of section 11 of this act does not include 44 – 25 – - *AB5* documentation that at least two of the following requirements were 1 met: 2 (a) The production company, distribution company or financing 3 company for the qualified production offered training or work 4 opportunities to traditionally underrepresented groups for the 5 development of skills required for employment as below-the-line 6 personnel or above-the-line personnel. 7 (b) Two or more persons who are members of a traditionally 8 underrepresented group are employed on the qualified production as 9 a casting director, cinematographer, composer, costume designer, 10 director, editor, hairstylist, makeup artist, producer, production 11 designer, set decorator, visual effects supervisor, writer, sound 12 editor, sound effects editor, sound mixer, Foley artist or other 13 similar personnel. 14 (c) Six or more persons who are members of a traditionally 15 underrepresented group are employed on the qualified production in 16 a technical role, including, without limitation, first assistant director, 17 gaffer, script supervisor, digital imaging technician or other similar 18 role. 19 (d) Not less than 20 percent of the below-the-line personnel 20 employed on the qualified production, not including background 21 actors, are members of a traditionally underrepresented group. 22 (e) One or more entities affiliated with the production company 23 or distribution company has a program of substantive, ongoing paid 24 apprenticeships or internships that include members of traditionally 25 underrepresented groups in not less than three of the following 26 departments: 27 (1) Production and development; 28 (2) Physical production; 29 (3) Postproduction; 30 (4) Music; 31 (5) Visual effects; 32 (6) Acquisitions; 33 (7) Business affairs; 34 (8) Distribution; or 35 (9) Marketing and publicity. 36 3. The Executive Director of the Office shall waive a reduction 37 in the cumulative amount of film infrastructure transferable tax 38 credits required pursuant to subsection 2 upon written proof to the 39 Executive Director that the production company made a good faith 40 effort to meet the requirements of that paragraph and there is an 41 insufficient number of persons available and qualified to meet the 42 requirements. 43 4. Except as otherwise provided in subsection 5, the Executive 44 Director of the Office may: 45 – 26 – - *AB5* (a) Reduce the cumulative amount of film infrastructure 1 transferable tax credits that are calculated pursuant to this section by 2 an amount equal to any damages incurred by the State or any 3 political subdivision of the State as a result of a qualified production 4 that is produced in this State; or 5 (b) Withhold film infrastructure transferable tax credits, in 6 whole or in part: 7 (1) Until any pending legal action in this State against a 8 production company or involving a qualified production is resolved. 9 (2) If a production company violates any state or local law. 10 (3) If a production company is found to have knowingly 11 submitted any false statement, representation or certification in any 12 document submitted for the purpose of obtaining film infrastructure 13 transferable tax credits. 14 5. Before taking any action authorized by subsection 4, the 15 Executive Director of the Office shall: 16 (a) Consider any documentation submitted by the production 17 company related to the action under consideration; 18 (b) Make the following determinations in writing: 19 (1) That good cause exists to take such action; 20 (2) That the action is reasonable based on the circumstances 21 of the underlying incident on which the reduction or withholding of 22 film infrastructure transferable tax credits authorized pursuant to 23 subsection 4 is based; and 24 (3) The amount of any reduction or withholding of film 25 infrastructure transferable tax credits authorized pursuant to 26 subsection 4 is commensurate with the severity of the underlying 27 incident on which the reduction or withholding is based; and 28 (c) Notify the production company, in writing, of the 29 determination made pursuant to paragraph (b). 30 6. As used in this section: 31 (a) “Racial or ethnic minority” means persons who are: 32 (1) Asian; 33 (2) Hispanic or Latino; 34 (3) Black or African American; 35 (4) Indigenous, Native American or Alaskan Native; 36 (5) Middle Eastern or North African; 37 (6) Native Hawaiian; 38 (7) Pacific Islander; or 39 (8) A member of any other underrepresented racial or ethnic 40 minority group. 41 (b) “Traditionally underrepresented group” means: 42 (1) Women; 43 (2) A racial or ethnic minority group; 44 – 27 – - *AB5* (3) A group of persons who identify as LGBTQ, which 1 means lesbian, gay, bisexual, transgender, queer, intersex or any 2 other nonheterosexual or noncisgender orientation or gender identity 3 or expression; 4 (4) A group of persons with disabilities, as defined in 5 NRS 426.068; 6 (5) Veterans; 7 (6) Persons who are currently serving on active duty in the 8 Armed Forces of the United States; or 9 (7) Persons who were previously incarcerated in a jail or 10 prison. 11 (c) “Veteran” means a person who has served in the Armed 12 Forces of the United States, a reserve component thereof or the 13 National Guard and was separated from such service under 14 conditions other than dishonorable. 15 Sec. 15. 1. Except as otherwise provided in this section, the 16 Office shall not approve any application for a certificate of 17 eligibility for film infrastructure transferable tax credits submitted 18 pursuant to section 11 of this act if: 19 (a) Approval of the application would cause the total amount of 20 film infrastructure transferable tax credits approved pursuant to 21 section 11 of this act to exceed the sum of $95,000,000 for each 22 fiscal year beginning on or after July 1, 2029. 23 (b) The application is submitted by a production company in a 24 fiscal year that begins on or after July 1, 2044. 25 2. Except as otherwise provided in paragraph (b) of subsection 26 1 and subsection 3, the amount of film infrastructure transferable tax 27 credits authorized for a fiscal year that are not approved for that 28 fiscal year may be carried forward and made available for approval 29 only during the next fiscal year, but the amount of film 30 infrastructure transferable tax credits carried forward and made 31 available for approval during the next fiscal year must not exceed 32 $47,500,000. For any fiscal year to which film infrastructure 33 transferable tax credits are carried forward from the immediately 34 preceding fiscal year pursuant to this subsection, the film 35 infrastructure transferable tax credits that have been carried forward 36 must be deemed to be the first film infrastructure transferable tax 37 credits approved until the total amount of film infrastructure 38 transferable tax credits carried forward from the immediately 39 preceding fiscal year have been approved. 40 3. If the Summerlin Production Studios Project does not satisfy 41 the criteria set forth in sub-subparagraph (I) of subparagraph (1) of 42 paragraph (a) of subsection 1 of section 10 of this act, the Office 43 shall not issue a certificate of film infrastructure transferable tax 44 credits to a production company that produces a qualified 45 – 28 – - *AB5* production for which a certificate of eligibility has been issued 1 pursuant to section 11 of this act. 2 4. Except as otherwise provided in this section, if the Office 3 approves an application for a certificate of eligibility pursuant to 4 section 11 of this act: 5 (a) Before July 1, 2029, the Office shall assign the amount of 6 film infrastructure transferable tax credits identified under the 7 certificate of eligibility to Fiscal Year 2029-2030. 8 (b) On or after July 1, 2029, the Office shall assign the amount 9 of film infrastructure transferable tax credits identified under the 10 certificate of eligibility to the fiscal year in which the application for 11 the certificate of eligibility is approved. 12 5. Except as otherwise provided in subsection 2, an amount of 13 film infrastructure transferable tax credits approved by the Office 14 under a certificate of eligibility issued to a production company 15 pursuant to section 11 of this act that exceeds the amount of film 16 infrastructure transferable tax credits approved by the Office under a 17 certificate of film infrastructure transferable tax credits issued to the 18 production company pursuant to section 11 of this act may be added 19 to the amount made available for approval during subsequent fiscal 20 years. 21 6. The film infrastructure transferable tax credits issued to any 22 production company for any qualified production pursuant to 23 section 11 of this act expire at the end of the calendar year that is 6 24 years after the date on which the film infrastructure transferable tax 25 credits are issued to the production company. 26 Sec. 16. 1. Except as otherwise provided in this subsection, 27 if an application for a certificate of eligibility is approved pursuant 28 to section 11 of this act, principal photography of the qualified 29 production must begin not more than 90 days after the date on 30 which the decision on the application is issued. The Office: 31 (a) Shall prescribe by regulation the procedure for determining 32 the date of commencement of qualified productions that do not 33 include photography for the purposes of this section. 34 (b) May extend by not more than 90 days the period otherwise 35 prescribed by this subsection, except that in the case of a force 36 majeure, the Office may extend the period for more than 90 days. 37 2. A production company that produces a qualified production 38 shall submit the final assessment of the workforce plan and audit 39 required by section 11 of this act and all other required information 40 to the Office and the Department of Taxation within the time 41 required by paragraph (d) or (e) of subsection 3 of section 11 of this 42 act, as applicable. Production of the qualified production must be 43 completed within 18 months after the date of commencement of 44 principal photography, except that the Office may extend this period 45 – 29 – - *AB5* for completion of the qualified production by not more than 6 1 months. If the Office or the Department determines that information 2 submitted pursuant to this subsection is incomplete, the production 3 company shall, not later than 30 days after receiving notice that the 4 information is incomplete, provide to the Office or the Department, 5 as applicable, all additional information required by the Office or 6 the Department. 7 Sec. 17. 1. Except as otherwise provided in subsection 3, a 8 production company that is found to have knowingly submitted any 9 false statement, representation or certification in any document 10 submitted for the purpose of obtaining film infrastructure 11 transferable tax credits, or that otherwise becomes ineligible for film 12 infrastructure transferable tax credits after receiving the film 13 infrastructure transferable tax credits pursuant to section 11 of this 14 act, shall repay to the Department of Taxation or the Nevada 15 Gaming Control Board, as applicable, any portion of the film 16 infrastructure transferable tax credits to which the production 17 company is not entitled. 18 2. Film infrastructure transferable tax credits purchased in 19 good faith are not subject to forfeiture or repayment by the 20 transferee unless the transferee submitted fraudulent information in 21 connection with the purchase. 22 3. A production company is not required to forfeit or repay any 23 portion of the film infrastructure transferable tax credits to which 24 the production company is otherwise entitled if the production 25 company demonstrates that the production company became 26 ineligible for the film infrastructure transferable tax credits as a 27 result of unforeseen circumstances beyond the control of the 28 production company, including, without limitation, an event in the 29 nature of force majeure. 30 Sec. 18. 1. Except as otherwise provided in this subsection, 31 not later than June 30, 2026, the Clark County Board of County 32 Commissioners shall create a production studio entertainment 33 district for the purpose of enhancing early childhood education 34 opportunities, including public prekindergarten, for children in 35 Clark County. The Clark County Board of County Commissioners 36 shall not create a production studio entertainment district pursuant to 37 this section if the Office and the lead participant in the Summerlin 38 Production Studios Project have not entered into a development 39 agreement pursuant to section 10 of this act within the period 40 required by that section or, if a production studio entertainment 41 district has been created, the Clark County Board of County 42 Commissioners shall dissolve the district if the Office and the lead 43 participant in the Project have not entered into a development 44 – 30 – - *AB5* agreement pursuant to section 10 of this act within the period 1 required by that section. The district must: 2 (a) Be located entirely within the unincorporated areas of Clark 3 County and outside the boundaries of any incorporated city; 4 (b) Include all parcels of land that are located within the 5 boundaries of the Summerlin Production Studios Project; and 6 (c) Not include any parcels of land other than the parcels of land 7 described in paragraph (b). 8 2. To make payments pursuant to subsection 3, the Clark 9 County Board of County Commissioners shall pledge the proceeds 10 of the following taxes, fees and charges, but excluding any taxes, 11 fees or charges imposed for the purpose of providing services 12 related to public safety or indigent services pursuant to any 13 provision of law: 14 (a) The tax imposed pursuant to NRS 244.3352 at the rate of 2 15 percent of the gross receipts from the rental of transient lodging 16 within the production studio entertainment district; 17 (b) The taxes imposed pursuant to chapter 361 of NRS on 18 property of any kind within the production studio entertainment 19 district for the general operating expenses of Clark County; 20 (c) The taxes imposed pursuant to chapter 361 of NRS on 21 property of any kind within the production studio entertainment 22 district for the general operating expenses of Summerlin Town; and 23 (d) The basic city-county relief tax, as defined in NRS 377.020, 24 with regard to tangible personal property sold at retail, or stored, 25 used or otherwise consumed, in the production studio entertainment 26 district. 27 3. After the creation of the production studio entertainment 28 district, the Department of Taxation, the Clark County Board of 29 County Commissioners and the Board of Trustees of the Clark 30 County School District shall enter into an agreement to transfer 31 money secured by a pledge of, and payable from, any money 32 pledged pursuant to subsection 2 and received with respect to the 33 district. The agreement must provide for a transfer to the Clark 34 County School District of money pledged pursuant to subsection 2 35 and received by the Department of Taxation or Clark County, 36 including, without limitation, specifying the dates and procedure for 37 the distribution of money pledged pursuant to subsection 2. An 38 agreement entered into pursuant to this section is not subject to the 39 limitations of subsection 1 of NRS 354.626 and may, at the option 40 of the Clark County Board of County Commissioners, be binding on 41 Clark County beyond the fiscal year in which it was made, if the 42 agreement pertains solely to the money pledged pursuant to 43 subsection 2. 44 4. The Clark County School District shall: 45 – 31 – - *AB5* (a) Deposit all money received pursuant to this section in a 1 separate account established and administered by the Board of 2 Trustees of the Clark County School District and use money in such 3 account solely for the purposes of prekindergarten education 4 programs in the Clark County School District, which, at the 5 discretion of the Clark County School District, may include, without 6 limitation, the development and implementation of early childhood 7 education pathways for the Clark County School District in 8 collaboration with the College of Education at the University of 9 Nevada, Las Vegas. 10 (b) Submit a report on or before July 1 of each year on the use 11 of all money received pursuant to this section to the Office of 12 Economic Development within the Office of the Governor. The 13 Office shall include the report received from the Clark County 14 School District in the report required pursuant to section 20 of this 15 act. 16 5. The Department of Taxation may adopt regulations 17 regarding procedures for the identification and segmentation with 18 respect to the production studio entertainment district of the taxes, 19 fees and charges described in subsection 2. 20 6. The Clark County Board of County Commissioners may 21 adopt, by ordinance, procedures for the identification and 22 segmentation with respect to the production studio entertainment 23 district of the taxes, fees and charges described in subsection 2. 24 7. The Department of Taxation and Clark County, and any 25 other local government or public body to which the taxes, fees and 26 charges described in subsection 2 are paid, shall provide 27 commercially reasonable procedures by which such taxes, fees and 28 charges paid by any business or other person operating in the 29 production studio entertainment district are to be identified and 30 segmented. All such businesses or other persons operating in the 31 production studio entertainment district shall follow the established 32 commercially reasonable procedures. 33 8. The provisions of this section must not be applied to modify, 34 directly or indirectly, any taxes levied or revenues pledged to impair 35 adversely any outstanding obligations of any local government or 36 the State, including, without limitation, bonds, notes, medium-term 37 financing, letters of credit and any other financial obligation, until 38 all such obligations have been discharged in full or provision for 39 their payment and redemption has been fully made. 40 Sec. 19. 1. The lead participant shall, on or before August 1 41 of each even-numbered year, prepare and submit to the Governor, 42 the Director of the Legislative Counsel Bureau for transmittal to the 43 Legislature and the Office a report on the performance of the Project 44 for the immediately preceding fiscal years and cumulatively for the 45 – 32 – - *AB5* period beginning on the effective date of this act and ending on the 1 last day of the immediately preceding fiscal year. The report must 2 include, without limitation: 3 (a) The following information concerning the development of 4 the Project: 5 (1) The cumulative capital investment, by component, 6 including the studio campus, vocational-training studio and 7 supporting uses; 8 (2) Square footage delivered and acreage improved, by 9 component; 10 (3) The status of capital investment requirements and 11 requirements for direct production expenditures included in the 12 development agreement pursuant to paragraph (a) of subsection 1 of 13 section 10 of this act and any penalties imposed on the Project 14 pursuant to section 10 of this act; 15 (4) Any improvements to public infrastructure installed or 16 financed by the Project; 17 (5) Any capital investment outside of the site of the Project 18 credited toward meeting the capital investment requirements 19 included in the development agreement pursuant to paragraph (a) of 20 subsection 1 of section 10 of this act; 21 (6) The primary user or tenant of each completed building 22 and space occupied and a brief business description; 23 (7) The share of total occupied square footage used by firms 24 whose principal business supports motion picture, television, digital 25 media or related content-creation activities; 26 (8) Total employment related to construction of the Project; 27 (9) Total employment at the Project that is not related to 28 construction of the Project; 29 (10) Aggregate wages and salaries paid to employees in 30 industries related to the Project, separately by industry; 31 (11) An analysis of the employment of Nevada residents in 32 industries related to the Project and plans to increase the percentage 33 of Nevada residents who are employed in industries related to the 34 Project; 35 (12) Demographic information concerning persons who 36 participate in a program of vocational training and education offered 37 at the Nevada Partners Vocational Training Studio; 38 (13) Any community investments in workforce training and 39 education; and 40 (14) Any efforts to develop vendor procurement 41 opportunities for small businesses and businesses owned by women, 42 veterans or other traditionally underrepresented groups. 43 (b) The following information concerning the production of 44 qualified productions, in whole or in part, at the site of the Project, 45 – 33 – - *AB5* regardless of whether the production company applies for or is 1 issued film infrastructure transferable tax credits for the qualified 2 production: 3 (1) The total amount of direct production expenditures, as 4 defined in section 10 of this act; 5 (2) The aggregate number of persons in Nevada employed by 6 qualified productions, the aggregate amount of wages paid to those 7 persons and aggregated demographic information concerning those 8 persons; 9 (3) The number of persons employed by each qualified 10 production who were paid compensation of more than $1,000,000 11 for labor or services provided for the qualified production and the 12 total number of persons employed by qualified productions were 13 paid more than $1,000,000 for labor or services provided for the 14 qualified production; 15 (4) For each qualified production and cumulatively for all 16 qualified productions, the percentage of below-the-line personnel, 17 by occupation and in aggregate, providing labor or services who 18 were Nevada residents, calculated by dividing the number of 19 workdays worked by Nevada residents who are below-the-line 20 personnel, excluding background actors, by the number of workdays 21 worked by all below-the-line personnel, excluding background 22 actors; 23 (5) For each qualified production and cumulatively for all 24 qualified productions, the percentage of below-line personnel, by 25 occupation and in aggregate, providing labor or services who were 26 Nevada residents, calculated by dividing the wages and salaries paid 27 to Nevada residents who are below-the-line personnel, excluding 28 background actors, for labor or services provided in this State by the 29 total wages and salaries paid to all below-the-line personnel, 30 excluding background actors; 31 (6) For each qualified production and cumulatively for all 32 qualified productions, the percentage of above-the-line personnel, 33 by occupation and in aggregate, providing labor or services who 34 were Nevada residents, calculated by dividing the number of 35 workdays worked by Nevada residents who are above-the-line 36 personnel by the number of workdays worked by all above-the-line 37 personnel; 38 (7) For each qualified production and cumulatively for all 39 qualified productions, the percentage of above-the-line personnel, 40 by occupation and in aggregate, providing labor or services who 41 were Nevada residents, calculated by dividing the wages and 42 salaries paid to Nevada residents who are above-the-line personnel 43 for labor or services provided in this State by the total wages and 44 salaries paid to all above-the-line personnel; 45 – 34 – - *AB5* (8) For each qualified production and cumulatively for all 1 qualified productions, the percentage of total compensation paid to 2 above-the-line personnel, by occupation and in aggregate, and the 3 percentage of total compensation paid to below-the-line personnel, 4 by occupation and in aggregate; 5 (9) The period during which each qualified production was in 6 Nevada and employed persons in Nevada; and 7 (10) The number of qualified productions that were produced 8 by persons or entities that are affiliated with the Summerlin 9 Production Studios Project and the number of qualified productions 10 that were produced by persons or entities that are not affiliated with 11 the Project. 12 2. The Office shall include a copy of the report received from 13 the Project in the report required by section 20 of this act. 14 Sec. 20. The Office shall include in the report prepared and 15 submitted pursuant to NRS 360.7598, on or before December 1 of 16 each even-numbered year, to the Governor and to the Director of the 17 Legislative Counsel Bureau for transmittal to the Legislature, a 18 report for the two immediately preceding fiscal years and 19 cumulatively for the period beginning on the effective date of this 20 act and ending on the last day of the immediately preceding fiscal 21 year: 22 1. The information provided to the Office pursuant to section 23 19 of this act; 24 2. The status of capital investment requirements and 25 requirements for direct production expenditures included in the 26 development agreement pursuant to paragraph (a) of subsection 1 of 27 section 10 of this act and any penalties imposed on the Project 28 pursuant to section 10 of this act; 29 3. The following information related to applications for film 30 infrastructure transferable tax credits and qualified productions: 31 (a) The number of applications submitted for a certificate of 32 eligibility for film infrastructure transferable tax credits pursuant to 33 section 11 of this act; 34 (b) The number of qualified productions for which film 35 infrastructure transferable tax credits were approved; 36 (c) The amount of film infrastructure transferable tax credits 37 approved; 38 (d) The amount of film infrastructure transferable tax credits 39 used; 40 (e) The amount of film infrastructure transferable tax credits 41 transferred; and 42 (f) The amount of film infrastructure transferable tax credits 43 taken against each allowable fee or tax, including the actual amount 44 used and outstanding, in total and for each qualified production; 45 – 35 – - *AB5* 4. Recommendations for strengthening the overall operation of 1 the program for the issuance of film infrastructure transferable tax 2 credits, including, without limitation, methods to promote and 3 encourage the development and establishment of production 4 companies in Nevada, including, without limitation, production 5 companies that are not affiliated with the Summerlin Production 6 Studios Project; 7 5. An overview of the motion picture and television industry in 8 this State, including, without limitation, the total number of 9 qualified productions in this State for which film infrastructure 10 transferable tax credits or noninfrastructure transferable tax credits 11 have not been approved, data concerning employment in the motion 12 picture and television industry in this State and production revenue 13 generated in this State; 14 6. Demographic information concerning persons who 15 participate in a program of vocational training and education offered 16 at the Nevada Partners Vocational Training Studio, or if the Nevada 17 Partners Vocational Training Studio is not completed and 18 operational, the equivalent facility that is completed and operational; 19 7. Demographic information concerning persons who 20 participate in a program of vocational training and education offered 21 at the Eastside Education and Training Center at the College of 22 Southern Nevada, or if the Eastside Education and Training Center 23 is not completed and operational, the equivalent facility that is 24 completed and operational; 25 8. The report received from the Clark County School District 26 pursuant to subsection 4 of section 18 of this act; 27 9. The report received from the Summerlin Production Studios 28 Project pursuant to subsection 2 of section 19 of this act; and 29 10. The compilation of information provided in reports made 30 by recipients of grants from the Account for Nevada Film, Media 31 and Related Technology Education and Vocational Training created 32 by section 38 of this act, which is provided to the Office pursuant to 33 section 40 of this act. 34 Sec. 21. Chapter 353 of NRS is hereby amended by adding 35 thereto a new section to read as follows: 36 1. The Director of the Office of Finance in the Office of the 37 Governor shall submit a request to the State Board of Examiners 38 to suspend the authority of taxpayers to redeem film infrastructure 39 transferable tax credits issued pursuant to section 11 of this act or 40 noninfrastructure transferable tax credits issued pursuant to NRS 41 360.759, or both, if, at any time during a fiscal year, the Economic 42 Forum projects that the anticipated revenue of the State for that 43 fiscal year will fall short by 10 percent or more of the total 44 anticipated revenue for the fiscal year, as projected by the 45 – 36 – - *AB5* Economic Forum for that fiscal year pursuant to paragraph (e) of 1 subsection 1 of NRS 353.228 and as adjusted by any legislation 2 enacted by the Legislature that affects state revenue for that fiscal 3 year. 4 2. The State Board of Examiners shall consider a request 5 made pursuant to subsection 1 and shall, if it finds that a 6 suspension is warranted based on the magnitude of the shortfall in 7 revenue, recommend to the Interim Finance Committee for its 8 independent evaluation and action that the suspension be imposed 9 for a period of time not to exceed 18 months after the date on 10 which the suspension is imposed. The Interim Finance Committee 11 is not bound to follow the recommendation of the State Board of 12 Examiners. 13 3. If the Interim Finance Committee finds that a suspension 14 recommended by the State Board of Examiners should and may 15 lawfully be made, the Committee shall by resolution direct the 16 Department of Taxation and the Nevada Gaming Control Board to 17 suspend the redemption of any film infrastructure transferable tax 18 credits issued pursuant to section 11 of this act or any 19 noninfrastructure transferable tax credits issued pursuant to NRS 20 360.759, or both, for a period of time not to exceed 18 months 21 after the date on which the suspension is imposed. 22 4. If a resolution is issued pursuant to subsection 3: 23 (a) The expiration date for film infrastructure transferable tax 24 credits set forth pursuant to section 15 of this act and 25 noninfrastructure transferable tax credits set forth pursuant to 26 NRS 360.7594, for which the suspension is imposed, must be 27 extended by the number of days that such transferable tax credits 28 may not be redeemed pursuant to the resolution. 29 (b) The total amount of film infrastructure transferable tax 30 credits set forth pursuant to section 15 of this act and 31 noninfrastructure transferable tax credits set forth pursuant to 32 NRS 360.7594 used by all taxpayers must not exceed 133 percent 33 of the total amount of film infrastructure transferable tax credits 34 pursuant to section 15 of this act and noninfrastructure 35 transferable tax credits pursuant to NRS 360.7594 authorized for 36 a fiscal year beginning on or after July 1, 2029, and before 37 June 30, 2044. 38 (c) For the purposes of paragraph (b), film infrastructure 39 transferable tax credits set forth pursuant to section 15 of this act 40 and noninfrastructure transferable tax credits set forth pursuant 41 to NRS 360.7594 must be accepted based on the date on which 42 they were issued, with the credits issued earliest in time accepted 43 until the limit set forth in paragraph (b) is met. 44 – 37 – - *AB5* Sec. 22. Chapter 360 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. Except as otherwise provided in subsections 3, 4 and 5, the 3 Office shall not issue noninfrastructure transferable tax credits to 4 a production company pursuant to NRS 360.759 unless, in 5 addition to meeting any other requirements for the issuance of 6 film infrastructure transferable tax credits, the production 7 company satisfies the applicable requirement for the employment 8 of Nevada residents as below-the-line personnel of the qualified 9 production as follows: 10 (a) For a qualified production that submits an application for 11 a certificate of eligibility for noninfrastructure transferable tax 12 credits pursuant to NRS 360.759 on or after July 1, 2026, and 13 before July 1, 2027, at least 10 percent of the below-the-line 14 personnel of the qualified production are Nevada residents. 15 (b) For a qualified production that submits an application for 16 a certificate of eligibility for noninfrastructure transferable tax 17 credits pursuant to NRS 360.759 on or after July 1, 2027, and 18 before July 1, 2028, at least 15 percent of the below-the-line 19 personnel of the qualified production are Nevada residents. 20 (c) For a qualified production that submits an application for 21 a certificate of eligibility for noninfrastructure transferable tax 22 credits pursuant to NRS 360.759 on or after July 1, 2028, and 23 before July 1, 2029, at least 20 percent of the below-the-line 24 personnel of the qualified production are Nevada residents. 25 (d) For a qualified production that submits an application for 26 a certificate of eligibility for noninfrastructure transferable tax 27 credits pursuant to NRS 360.759 on or after July 1, 2029, and 28 before July 1, 2030, at least 25 percent of the below-the-line 29 personnel of the qualified production are Nevada residents. 30 (e) For a qualified production that submits an application for 31 a certificate of eligibility for noninfrastructure transferable tax 32 credits pursuant to NRS 360.759 on or after July 1, 2030, and 33 before July 1, 2031, at least 30 percent of the below-the-line 34 personnel of the qualified production are Nevada residents. 35 (f) For a qualified production that submits an application for a 36 certificate of eligibility for noninfrastructure transferable tax 37 credits pursuant to NRS 360.759 on or after July 1, 2031, and 38 before July 1, 2032, at least 40 percent of the below-the-line 39 personnel of the qualified production are Nevada residents. 40 (g) For a qualified production that submits an application for 41 a certificate of eligibility for noninfrastructure transferable tax 42 credits pursuant to NRS 360.759 on or after July 1, 2032, and 43 before July 1, 2038, at least 50 percent of the below-the-line 44 personnel of the qualified production are Nevada residents. 45 – 38 – - *AB5* (h) For a qualified production that submits an application for 1 a certificate of eligibility for noninfrastructure transferable tax 2 credits pursuant to NRS 360.759 on or after July 1, 2038, and 3 before July 1, 2044, at least 60 percent of the below-the-line 4 personnel of the qualified production are Nevada residents. 5 2. To satisfy the applicable requirement for the employment 6 of Nevada residents as below-the-line personnel of the qualified 7 production, as set forth in subsection 1, the production company 8 producing the qualified production must satisfy the applicable 9 requirement under both of the following calculations: 10 (a) The percentage calculated by dividing a numerator 11 consisting of the number of workdays worked by Nevada residents 12 who are below-the-line personnel, excluding background actors, 13 for labor or services provided in this State by a denominator 14 consisting of the number of workdays worked by all below-the-line 15 personnel, excluding background actors, for labor or services 16 provided in this State, must exceed the applicable requirement set 17 forth in subsection 1; and 18 (b) Except as otherwise provided in subsections 3 and 4, the 19 percentage calculated by dividing a numerator consisting of the 20 wages and salaries paid to Nevada residents who are below-the- 21 line personnel, excluding background actors, for labor or services 22 provided in this State by a denominator consisting of the total 23 wages and salaries paid to all below-the-line personnel, excluding 24 background actors, for labor or services provided in this State, 25 must exceed the applicable requirement set forth in subsection 1. 26 3. Except as otherwise provided in subsection 4, for the 27 purposes of the calculation required by paragraph (b) of 28 subsection 2, wages and salaries paid to persons employed as one 29 of each of the following below-the-line personnel must not be 30 included in the calculation of the denominator as total wages and 31 salaries paid to all below-the-line personnel for labor or services 32 provided in this State: 33 (a) Director of photography; 34 (b) First assistant director; 35 (c) Editor; 36 (d) VFX supervisor; 37 (e) Costume designer; 38 (f) Costume supervisor; 39 (g) Production designer; 40 (h) Unit production manager; 41 (i) Construction coordinator; 42 (j) Set decorator; 43 (k) Supervising art director; 44 (l) Financial controller; 45 – 39 – - *AB5* (m) Special effects supervisor; 1 (n) Art director; 2 (o) Stunt coordinator; 3 (p) Makeup artist; 4 (q) Key hairstylist; 5 (r) Propmaster; 6 (s) Gaffer; 7 (t) Camera operator or steadicam operator; 8 (u) Sound mixer; 9 (v) Choreographer; and 10 (w) Any other position deemed by the Executive Director to be 11 specialized. 12 4. A calculation required by paragraph (b) of subsection 2 13 using a denominator adjusted pursuant to subsection 3 must not 14 result in the applicable requirement set forth in subsection 1 being 15 less than 80 percent of that applicable requirement. 16 5. A production company that has applied for a certificate of 17 eligibility for noninfrastructure transferable tax credits pursuant 18 to NRS 360.759 may, at any time, apply to the Executive Director 19 of the Office for a waiver of the applicable requirement for the 20 employment of Nevada residents as below-the-line personnel of 21 the qualified production, as set forth in subsection 1. The 22 Executive Director of the Office shall approve such a waiver if the 23 production company provides evidence satisfactory to the 24 Executive Director that: 25 (a) A good faith effort was made to identify and hire Nevada 26 residents to satisfy the applicable requirement of paragraph (d) of 27 subsection 3; and 28 (b) There is an insufficient number of Nevada residents is 29 available and qualified for employment as below-the-line 30 personnel of the qualified production. 31 Sec. 23. NRS 360.758 is hereby amended to read as follows: 32 360.758 As used in NRS 360.758 to 360.7598, inclusive, and 33 section 22 of this act, unless the context otherwise requires, the 34 words and terms defined in NRS 360.7581 to 360.7586, inclusive, 35 have the meanings ascribed to them in those sections. 36 Sec. 24. NRS 360.7582 is hereby amended to read as follows: 37 360.7582 “Below-the-line personnel” means a person 38 employed to work on a qualified production after production begins 39 and before production is completed, including, without limitation, 40 [an extra,] a background actor, best boy, boom operator, camera 41 loader, camera operator, assistant camera operator, compositor, 42 dialogue editor, film editor, assistant film editor, focus puller, Foley 43 operator, Foley editor, gaffer, grip, key grip, lighting crew, lighting 44 board operator, lighting technician, music editor, sound editor, 45 – 40 – - *AB5* sound effects editor, sound mixer, steadicam operator, first assistant 1 camera operator, second assistant camera operator, digital imaging 2 technician, camera operator working with a director of photography, 3 electric best boy, grip best boy, dolly grip, rigging grip, assistant 4 key for makeup, assistant key for hair, assistant script supervisor, set 5 construction foreperson, lead set dresser, assistant key for wardrobe, 6 scenic foreperson, assistant propmaster, assistant audio mixer, 7 assistant boom person, assistant key for special effects and other 8 similar personnel. The term does not include above-the-line 9 personnel. 10 Sec. 25. NRS 360.7586 is hereby amended to read as follows: 11 360.7586 1. “Qualified production” includes preproduction, 12 production and postproduction and means: 13 (a) A theatrical, direct-to-video or other media motion picture. 14 (b) A made-for-television motion picture. 15 (c) Visual effects or digital animation sequences. 16 (d) A television pilot program. 17 (e) A television, Internet or other media series, including, 18 without limitation, a comedy, drama, miniseries, soap opera, talk 19 show, game show or telenovela, or an episode of such a series. 20 (f) A reality show. 21 (g) A national or regional commercial or series of commercials. 22 (h) An infomercial. 23 (i) A music video. 24 (j) A documentary film or series. 25 (k) Other visual media productions, including, without 26 limitation, video games , digital media and mobile applications. 27 2. The term does not include: 28 (a) A news, weather or current events program. 29 (b) A production that is primarily produced for industrial, 30 corporate or institutional use. 31 (c) A telethon or any production that solicits money, other than a 32 production which is produced for national distribution. 33 (d) A political advertisement. 34 (e) A sporting event, including, without limitation, a sportscast, 35 preshow, postshow or sports newscast related to a sporting event. A 36 qualified production described by subsection 1 shall not be deemed 37 a sporting event for the purposes of this paragraph for the sole 38 reason that it features athletes or relates to sports. 39 (f) A gala, pageant or awards show. 40 (g) Any type of media production created solely for the purpose 41 of posting the production on social media, as defined by 42 regulations adopted by the Office pursuant to NRS 360.759. 43 – 41 – - *AB5* (h) Any other type of production that is excluded by regulations 1 adopted by the Office of Economic Development pursuant to 2 NRS 360.759. 3 Sec. 26. NRS 360.759 is hereby amended to read as follows: 4 360.759 1. A production company that produces a qualified 5 production in this State in whole or in part may apply to the Office 6 of Economic Development for a certificate of eligibility for 7 noninfrastructure transferable tax credits for any qualified direct 8 production expenditures. The noninfrastructure transferable tax 9 credits may be applied to: 10 (a) Any tax imposed by chapters 363A and 363B of NRS; 11 (b) The gaming license fees imposed by the provisions of 12 NRS 463.370; 13 (c) Any tax imposed pursuant to chapter 680B of NRS; or 14 (d) Any combination of the fees and taxes described in 15 paragraphs (a), (b) and (c). 16 2. [The] Except as otherwise provided in NRS 360.7594, the 17 Office [may] shall approve an application for a certificate of 18 eligibility for noninfrastructure transferable tax credits if the Office 19 finds that the production company producing the qualified 20 production qualifies for the noninfrastructure transferable tax 21 credits pursuant to subsection 3. If the Office approves the 22 application, the Office shall [calculate] : 23 (a) Calculate the estimated amount of the noninfrastructure 24 transferable tax credits pursuant to NRS 360.7592, 360.7593 and 25 360.7594 [.] ; and 26 (b) Immediately forward a copy of the certificate of eligibility 27 that identifies the estimated amount of the noninfrastructure 28 transferable tax credits to: 29 (1) The applicant; 30 (2) The Department of Taxation; and 31 (3) The Nevada Gaming Control Board. 32 3. To be eligible for noninfrastructure transferable tax credits 33 pursuant to this section, a production company must: 34 (a) [Submit] Before the beginning of principal photography, 35 submit to the Office an application for a certificate of eligibility that 36 meets the requirements of subsection 4; 37 (b) [Provide proof satisfactory] Submit to the Office [that the 38 qualified production is in the economic interest of the State; 39 (c) Provide proof satisfactory to the Office] with the application 40 for a certificate of eligibility: 41 (1) Proof that 70 percent or more of the funding for the 42 qualified production has been obtained; 43 [(d) Provide proof satisfactory to the Office] and 44 (2) Proof that [at] : 45 – 42 – - *AB5* (I) At least [60] 50 percent of the [direct production 1 expenditures for: 2 (1) Preproduction; 3 (2) Production; and 4 (3) If any direct production expenditures for postproduction 5 will be incurred in this State, postproduction, 6 ] total principal photography days of the qualified production 7 will [be incurred] take place in this State [as qualified direct 8 production expenditures; 9 (e)] ; or 10 (II) The qualified production will incur qualified direct 11 production expenditures in this State of at least $5,000,000; 12 (c) Satisfy the applicable requirement for the employment of 13 Nevada residents as below-the-line personnel of the qualified 14 production, as set forth in section 22 of this act; 15 (d) Provide to the Office: 16 (1) With the application for a certificate of eligibility, proof 17 that the applicant has in place a workforce plan for the qualified 18 production that outlines specific goals for: 19 (I) Hiring a workforce that reflects the diversity of this 20 State, including, without limitation, the age, gender, gender 21 identity or expression, as defined in NRS 0.034, sexual 22 orientation, ethnic and geographic diversity of this State; 23 (II) Using vendors that are minority-owned business 24 enterprises or woman-owned business enterprises; and 25 (III) Achieving the requirements set forth in subsection 26 3 of 360.7592; and 27 (2) Not later than 365 days after the completion of principal 28 photography of the qualified production, unless the Office agrees 29 to extend this period by not more than 180 days, a final assessment 30 of the workforce plan that includes documentation on whether the 31 production met or made good faith efforts to achieve the goals set 32 forth in the workforce plan; 33 (e) Not later than [270] 365 days after the completion of 34 principal photography of the qualified production or, if any direct 35 production expenditures for postproduction will be incurred in this 36 State, not later than [270] 365 days after the completion of 37 postproduction, unless the Office agrees to extend this period by not 38 more than [90] 180 days, provide the Office with an audit of the 39 qualified production that includes [an] : 40 (1) An itemized report of qualified direct production 41 expenditures which: 42 [(1)] (I) Shows that the qualified production incurred 43 qualified direct production expenditures of $500,000 or more; [and 44 – 43 – - *AB5* (2)] (II) If the production company complied with the 1 requirement of subparagraph (2) of paragraph (b) by providing to 2 the Office with the application for a certificate of eligibility proof 3 that the qualified production would incur qualified direct 4 production expenditures in this State of at least $5,000,000, shows 5 that the qualified production incurred qualified direct production 6 expenditures in this State of at least $5,000,000; and 7 (III) Is certified by an independent certified public 8 accountant in this State who is approved by the Office; 9 (2) A list of each contractor, vendor, personal service 10 corporation or loan-out company or other business engaged by the 11 production company to provide goods or perform services in an 12 aggregate amount of at least $10,000 or more in this State in 13 connection with the qualified production and the amount paid to 14 each contractor, vendor, personal service corporation or loan-out 15 company or other business for such goods or services; and 16 (3) Proof that the production company secured all licenses 17 and registrations required to do business in each location in this 18 State at which the qualified production was produced; 19 (f) Pay the cost of the audit required by paragraph (e); 20 (g) Enter into a written agreement with the Office that requires 21 the production company to include: 22 (1) In the end screen credits of the qualified production, a 23 logo of this State provided by the Office which indicates that the 24 qualified production was filmed or otherwise produced in Nevada; 25 or 26 (2) If the qualified production does not have end screen 27 credits, another acknowledgment in the final version of the qualified 28 production which indicates that the qualified production was filmed 29 or otherwise produced in Nevada [;] or any alternative marketing 30 promotion acceptable to the Office; and 31 (h) [Meet any other requirements prescribed by regulation 32 pursuant to this section.] Enter into a written agreement with the 33 Office that requires the production company to transmit to each 34 contractor, vendor, personal service corporation or loan-out 35 company or other business engaged by the production company to 36 provide goods or perform services in an aggregate amount of at 37 least $10,000 or more in this State in connection with a qualified 38 production, not later than 30 calendar days after the production 39 company pays the contractor, vendor, personal service corporation 40 or loan-out company or other business, a notification that 41 includes: 42 (1) A statement that Nevada imposes: 43 (I) A tax on wages paid by certain employers pursuant to 44 chapters 363A and 363B of NRS; and 45 – 44 – - *AB5* (II) A commerce tax on certain business entities 1 pursuant to chapter 363C of NRS; and 2 (2) Instructions for obtaining additional information from 3 the Department of Taxation regarding the collection and 4 remittance of taxes pursuant to chapters 363A, 363B and 363C of 5 NRS. 6 4. An application for a certificate of eligibility submitted 7 pursuant to subsection 3 must contain: 8 (a) A script, storyboard or synopsis of the qualified production; 9 (b) The names of the production company, producer, director 10 and proposed cast; 11 (c) An estimated timeline to complete the qualified production; 12 (d) [A summary of the budgeted expenditures for the entire 13 production, including projected expenditures to be incurred outside 14 of Nevada;] An estimate of the percentage of principal 15 photography days of the qualified production that will take place 16 in this State and outside this State; 17 (e) Details regarding the financing of the project, including, 18 without limitation, any information relating to a binding financing 19 commitment, loan application, commitment letter or investment 20 letter; 21 (f) An insurance certificate, binder or quote for general liability 22 insurance of $1,000,000 or more; 23 (g) The business address of the production company; 24 (h) Proof that the qualified production meets any applicable 25 requirements relating to workers’ compensation insurance; and 26 (i) [Proof that the production company has secured all licenses 27 and registrations required to do business in each location in this 28 State at which the qualified production will be produced; and 29 (j) Any other information required by regulations adopted by the 30 Office pursuant to subsection 8.] The workforce plan of the 31 production company that is required by paragraph (d) of 32 subsection 3. 33 5. [If the Office approves an application for a certificate of 34 eligibility for transferable tax credits pursuant to this section, the 35 Office shall immediately forward a copy of the certificate of 36 eligibility which identifies the estimated amount of the tax credits 37 available pursuant to NRS 360.7592 to: 38 (a) The applicant; 39 (b) The Department; and 40 (c) The Nevada Gaming Control Board. 41 6.] Within [60] 45 business days after receipt of a final 42 assessment of the workforce plan provided by a production 43 company pursuant to subparagraph (2) of paragraph (d) of 44 subsection 3, an audit provided by a production company pursuant 45 – 45 – - *AB5* to paragraph (e) of subsection 3 and any other accountings or other 1 information required by the Office, the Office shall determine 2 whether to certify the audit and make a final determination of 3 whether a certificate of noninfrastructure transferable tax credits 4 will be issued. If the Office certifies the audit, determines that all 5 other requirements for the noninfrastructure transferable tax credits 6 have been met and determines that a certificate of noninfrastructure 7 transferable tax credits will be issued, the Office shall notify the 8 production company that the noninfrastructure transferable tax 9 credits will be issued. 10 6. Within [30] 90 days after the receipt of the notice, the 11 production company shall make an irrevocable declaration of the 12 amount of noninfrastructure transferable tax credits that will be 13 applied to each fee or tax set forth in subsection 1, thereby 14 accounting for all of the credits which will be issued [.] in relation 15 to the qualified production. Upon receipt of the declaration, the 16 Office shall issue to the production company a certificate of 17 noninfrastructure transferable tax credits in the amount approved 18 by the Office for the fees or taxes included in the declaration of the 19 production company. The production company shall notify the 20 Office upon transferring any of the noninfrastructure transferable 21 tax credits. The Office shall notify the Department and the Nevada 22 Gaming Control Board of all noninfrastructure transferable tax 23 credits issued, segregated by each fee or tax set forth in subsection 24 1, and the amount of any noninfrastructure transferable tax credits 25 transferred. 26 7. For a production company that submitted an application 27 for a certificate of eligibility for noninfrastructure transferable tax 28 credits on or after July 1, 2029, and before June 30, 2044, 60 days 29 after the production company uses any noninfrastructure 30 transferable tax credits issued pursuant to subsection 6 or notifies 31 the Office of any transfer of noninfrastructure transferable tax 32 credits issued pursuant to subsection 6, the production company 33 shall pay to the Office an amount of money equal to 1 percentage 34 point of the percentage of qualified direct production expenditures 35 used to calculate the amount of noninfrastructure transferable tax 36 credits issued to the production company pursuant to subsection 6. 37 The Office shall deposit any money received pursuant to this 38 subsection with the State Treasurer for credit to the Account for 39 Nevada Film, Media and Related Technology Education and 40 Vocational Training created by section 38 of this act. A payment 41 made pursuant to this subsection shall be deemed to be a payment 42 made from noninfrastructure transferable tax credits which would 43 have been authorized and approved for the production company if 44 a payment pursuant to this section were not required. 45 – 46 – - *AB5* 8. An applicant for noninfrastructure transferable tax credits 1 pursuant to this section shall, upon the request of the Executive 2 Director of the Office, furnish the Executive Director with copies of 3 all records necessary to verify that the applicant meets the 4 requirements of subsection 3. 5 [8.] 9. The Office: 6 (a) Shall adopt regulations prescribing: 7 (1) [Any additional requirements to receive transferable tax 8 credits; 9 (2)] Any additional qualified expenditures or production 10 costs that may serve as the basis for noninfrastructure transferable 11 tax credits pursuant to NRS 360.7591; 12 [(3) Any additional information that must be included with 13 an application pursuant to subsection 4; 14 (4)] (2) The application review process; 15 [(5) Any type of qualified] 16 (3) That a production for which [, due to obscene or sexually 17 explicit material,] records are required by 18 U.S.C. § 2257 to be 18 maintained with respect to any performer in such production is not 19 eligible for noninfrastructure transferable tax credits; and 20 [(6) The requirements for notice pursuant to NRS 360.7595;] 21 (4) Any necessary provisions to ensure compliance with the 22 requirements of paragraph (d) of subsection 3 relating to 23 workforce plans; and 24 (b) May adopt any other regulations that are necessary to [carry 25 out] ensure that the provisions of NRS 360.758 to 360.7598, 26 inclusive [.] , are carried out in a manner that is reasonable and 27 customary within the industry for the production of qualified 28 productions. 29 [9.] 10. The Nevada Tax Commission and the Nevada Gaming 30 Commission: 31 (a) Shall adopt regulations prescribing the manner in which 32 noninfrastructure transferable tax credits will be administered. 33 (b) May adopt any other regulations that are necessary to carry 34 out the functions performed by each entity pursuant to the 35 provisions of NRS 360.758 to 360.7598, inclusive. 36 Sec. 27. NRS 360.7591 is hereby amended to read as follows: 37 360.7591 1. [Qualified] Except as otherwise provided in this 38 subsection and subsection 3, qualified direct production 39 expenditures that may serve as a basis for noninfrastructure 40 transferable tax credits issued pursuant to NRS 360.759 must [be 41 for purchases,] : 42 (a) Be expenditures made during the period in which a 43 qualified production is produced; 44 (b) Be customary and reasonable; 45 – 47 – - *AB5* (c) Relate to a category of qualified expenditures and costs 1 listed in subsection 2; and 2 (d) Be: 3 (1) Purchases, rentals or leases of tangible personal property 4 or services from a Nevada business . [during the period in which a 5 qualified production is produced, must be customary and reasonable 6 and] 7 (2) The payroll, including wages, salaries and fringe 8 benefits, for Nevada residents or other personnel for labor or 9 services provided in this State, as included in the calculation of the 10 amount of noninfrastructure transferable tax credits in 11 accordance with subsection 4. The payroll, including wages, 12 salaries and fringe benefits, for Nevada residents or other 13 personnel for labor or services provided outside this State must not 14 be a qualified direct production expenditure. 15 (3) Compensation, including wages, salaries, fringe 16 benefits and other payments, paid to a bona fide third-party 17 service provider, or to another person receiving the compensation 18 on behalf of the bona fide third-party service provider, for labor or 19 services provided in Nevada. Compensation, including wages, 20 salaries, fringe benefits and other payments, paid to a bona fide 21 third-party service provider, or to another person receiving the 22 compensation on behalf of the bona fide third-party service 23 provider, for labor or services provided outside Nevada must not 24 be a qualified direct production expenditure. 25 2. Expenditures or costs that may serve as a basis for 26 calculating noninfrastructure transferable tax credits must relate 27 to: 28 (a) Set construction and operation; 29 (b) Wardrobe and makeup; 30 (c) Photography, sound and lighting; 31 (d) Filming, film processing and film editing; 32 (e) The rental or leasing of facilities, equipment and vehicles; 33 (f) Food and lodging; 34 (g) Editing, sound mixing, special effects, visual effects and 35 other postproduction services; 36 (h) [The payroll for Nevada residents or other personnel who 37 provided services in this State; 38 (i)] Payment for goods or services provided by a Nevada 39 business; 40 [(j)] (i) The design, construction, improvement or repair of 41 property, infrastructure, equipment or a production or 42 postproduction facility; 43 [(k)] (j) State and local government taxes to the extent not 44 included as part of another cost reported pursuant to this section; 45 – 48 – - *AB5* [(l) Fees paid to a producer who is a Nevada resident; and 1 (m)] or 2 (k) Any other transaction, service or activity authorized in 3 regulations adopted by the Office of Economic Development 4 pursuant to NRS 360.759. 5 [2.] 3. Expenditures and costs: 6 (a) Related to: 7 (1) The acquisition, transfer or use of noninfrastructure 8 transferable tax credits; 9 (2) Marketing and distribution; 10 (3) Financing, depreciation and amortization; 11 (4) The payment of any profits as a result of the qualified 12 production; 13 (5) The payment for the cost of the audit required by NRS 14 360.759; and 15 (6) The payment for any goods or services that are not 16 directly attributable to the qualified production; 17 (b) For which reimbursement is received, or for which 18 reimbursement is reasonably expected to be received; 19 (c) Which are paid to a joint venturer or a parent, subsidiary or 20 other affiliate of the production company, unless the amount paid 21 represents the fair market value , which may be represented by a 22 rate sheet, of the purchase, rental or lease of the property or services 23 for which payment is made; or 24 (d) [Which provide a pass-through benefit to a person who is not 25 a Nevada resident; or 26 (e)] Which have been previously claimed as a basis for 27 noninfrastructure transferable tax credits [,] issued pursuant to 28 NRS 360.759 or film infrastructure transferable tax credits issued 29 pursuant to section 11 of this act, 30  are not qualified direct production expenditures and are not 31 eligible to serve as a basis for transferable tax credits issued 32 pursuant to NRS 360.759. 33 [3.] 4. If any tangible personal property is acquired by a 34 Nevada business from a vendor outside this State for immediate 35 resale, rental or lease to a production company that produces a 36 qualified production, expenditures incurred by the production 37 company for the purchase, rental or lease of the property are 38 qualified direct production expenditures only if: 39 (a) The Nevada business regularly deals in property of that kind; 40 (b) The expenditures are otherwise qualified direct production 41 expenditures under the provisions of this section; and 42 (c) Not more than 50 percent of the property purchased, rented 43 or leased by the production company for the qualified production is 44 acquired and purchased, rented or leased in the manner described in 45 – 49 – - *AB5* this subsection. In making the calculation required by this 1 paragraph, the cost of any property that remains an asset of the 2 Nevada business after production of the qualified production has 3 ended must not be included in the calculation as property purchased, 4 rented or leased in the manner described in this subsection. 5 [4.] 5. If any tangible personal property is acquired by the 6 production company as an asset, the calculation of the costs of the 7 tangible personal property that constitute a qualified direct 8 production expenditure must be performed in the manner prescribed 9 by the Office [of Economic Development] by regulation. 10 6. As used in this section: 11 (a) “Bona fide third-party service provider” means a qualified 12 entity, a qualified individual or any other person determined by 13 the Office to be providing necessary and appropriate labor or 14 services directly related to the qualified production. 15 (b) “Fringe benefits” means employee expenses paid by an 16 employer for the use of the employee’s services, including, without 17 limitation, payments made to a governmental entity, union dues, 18 health insurance premiums, payments to a pension plan and 19 payments for workers’ compensation insurance. 20 (c) “Qualified entity” means an entity that is: 21 (1) A personal service corporation, as defined in 26 U.S.C. 22 § 269A(b)(1), a payroll services corporation or any entity receiving 23 payments for services performed in this State by a qualified 24 individual; and 25 (2) Registered to conduct business pursuant to the laws of 26 this State. 27 (d) “Qualified individual” means any natural person who 28 performs services during the production period in an activity 29 related to the production of a qualified production. The term does 30 not include: 31 (1) Any natural person related to the production company 32 or an employee of the production company, as described in 33 subparagraph (A), (B) or (C) of 26 U.S.C. § 51(i)(1). 34 (2) Any 5-percent owner, as defined in 26 U.S.C. § 35 416(i)(1)(B), of the production company. 36 Sec. 28. NRS 360.7592 is hereby amended to read as follows: 37 360.7592 1. Except as otherwise provided in [subsection 4] 38 subsections 3 and 5 and NRS 360.7593 and 360.7594, the base 39 amount of noninfrastructure transferable tax credits issued to an 40 eligible production company pursuant to NRS 360.759 : 41 (a) For an eligible production company that submitted the 42 application for the certificate of eligibility for the 43 noninfrastructure transferable tax credits before July 1, 2029, or 44 – 50 – - *AB5* on or after July 1, 2044, must equal 15 percent of the qualified 1 direct production expenditures. 2 (b) For an eligible production company that submitted the 3 application for the certificate of eligibility for the 4 noninfrastructure transferable tax credits on or after July 1, 2029, 5 and before July 1, 2044, must equal 30 percent of the qualified 6 direct production expenditures. 7 2. Except as otherwise provided in subsections [3] 4 and [4] 5 8 and NRS 360.7594, if an eligible production company submitted 9 the application for the certificate of eligibility for 10 noninfrastructure transferable tax credits pursuant to NRS 11 360.759 before July 1, 2028, or on or after July 1, 2043, in addition 12 to the base amount calculated pursuant to paragraph (a) of 13 subsection 1, the noninfrastructure transferable tax credits issued 14 to [an] the eligible production company [pursuant to NRS 360.759] 15 must include credits in an amount equal to [: 16 (a) An additional 5 percent of the qualified direct production 17 expenditures if more than 50 percent of the below-the-line personnel 18 of the qualified production are Nevada residents; and 19 (b) An] an additional 5 percent of the qualified direct production 20 expenditures if more than 50 percent of the filming days of the 21 qualified production occurred in a county in this State in which, in 22 each of the 2 years immediately preceding the date of application, 23 qualified productions incurred less than $10,000,000 of qualified 24 direct production expenditures. 25 3. [For the purposes of paragraph (a) of subsection 2: 26 (a) Except as otherwise provided in paragraph (b) of this 27 subsection, the percentage of the below-the-line personnel who are 28 Nevada residents must be determined by dividing the number of 29 workdays worked by Nevada residents by the number of workdays 30 worked by all below-the-line personnel. 31 (b) Any work performed by an extra must not be considered in 32 determining the percentage of the below-the-line personnel who are 33 Nevada residents. 34 4. The] Except as otherwise provided in subsections 4 and 5 35 and NRS 360.7594, if an eligible production company submitted 36 the application for the certificate of eligibility for 37 noninfrastructure transferable tax credits pursuant to NRS 38 360.759 on or after July 1, 2032, and before July 1, 2044, the 39 Office shall reduce the cumulative amount of noninfrastructure 40 transferable tax credits calculated pursuant to paragraph (b) of 41 subsection 1 by 5 percent if the final assessment of the workforce 42 plan submitted by the production company for the qualified 43 production pursuant to paragraph (d) of subsection 3 of 44 – 51 – - *AB5* NRS 360.759 does not include documentation that at least two of 1 the following requirements were met: 2 (a) The production company, distribution company or 3 financing company for the qualified production offered training 4 or work opportunities to members of traditionally 5 underrepresented groups for the development of skills required for 6 employment as below-the-line personnel or above-the-line 7 personnel. 8 (b) Two or more persons who are members of a traditionally 9 underrepresented group are employed on the qualified production 10 as a casting director, cinematographer, composer, costume 11 designer, director, editor, hairstylist, makeup artist, producer, 12 production designer, set decorator, visual effects supervisor, 13 writer, sound editor, sound effects editor, sound mixer, Foley artist 14 or other similar personnel. 15 (c) Six or more persons who are members of a traditionally 16 underrepresented group are employed on the qualified production 17 in a technical role, including, without limitation, first assistant 18 director, gaffer, script supervisor, digital imaging technician or 19 other similar role. 20 (d) Not less than 20 percent of the below-the-line personnel 21 employed on the qualified production, not including background 22 actors, are members of a traditionally underrepresented group. 23 (e) One or more entities affiliated with the production 24 company or distribution company has a program of substantive, 25 ongoing paid apprenticeships or internships that includes 26 members of traditionally underrepresented groups in not less than 27 three of the following departments: 28 (1) Production and development; 29 (2) Physical production; 30 (3) Postproduction; 31 (4) Music; 32 (5) Visual effects; 33 (6) Acquisitions; 34 (7) Business affairs; 35 (8) Distribution; or 36 (9) Marketing and publicity. 37 4. The Executive Director of the Office shall waive a 38 reduction in the cumulative amount of noninfrastructure 39 transferable tax credits required pursuant to subsection 3 upon 40 written proof to the Executive Director that the production 41 company made a good faith effort to meet the requirements of that 42 subsection and there is an insufficient number of persons 43 available and qualified to meet the requirements. 44 – 52 – - *AB5* 5. Except as otherwise provided in subsection 6, the 1 Executive Director of the Office may: 2 (a) Reduce the cumulative amount of noninfrastructure 3 transferable tax credits that are calculated pursuant to this section by 4 an amount equal to any damages incurred by the State or any 5 political subdivision of the State as a result of a qualified production 6 that is produced in this State; or 7 (b) Withhold the noninfrastructure transferable tax credits, in 8 whole or in part: 9 (1) Until any pending legal action in this State against a 10 production company or involving a qualified production is resolved. 11 (2) If a production company violates any state or local law. 12 (3) If a production company is found to have knowingly 13 submitted any false statement, representation or certification in any 14 document submitted for the purpose of obtaining noninfrastructure 15 transferable tax credits. 16 6. Before taking any action authorized by subsection 5, the 17 Executive Director of the Office shall: 18 (a) Consider any documentation submitted by the production 19 company related to the action under consideration; and 20 (b) Make the following determinations: 21 (1) That good cause exists to take such action; 22 (2) That the action is reasonable based on the 23 circumstances of the underlying incident on which the reduction 24 or withholding of noninfrastructure transferable tax credits 25 authorized pursuant to subsection 5 is based; and 26 (3) The amount of any reduction or withholding of 27 noninfrastructure transferable tax credits authorized pursuant to 28 subsection 5 is commensurate with severity of the underlying 29 incident on which the reduction or withholding is based. 30 7. As used in this section: 31 (a) “Racial or ethnic minority” means persons who are: 32 (1) Asian; 33 (2) Hispanic or Latino; 34 (3) Black or African American; 35 (4) Indigenous, Native American or Alaskan Native; 36 (5) Middle Eastern or North African; 37 (6) Native Hawaiian; 38 (7) Pacific Islander; or 39 (8) A member of any other underrepresented racial or 40 ethnic minority group. 41 (b) “Traditionally underrepresented group” means: 42 (1) Women; 43 (2) A racial or ethnic minority group; 44 – 53 – - *AB5* (3) A group of persons who identify as LGBTQ, which 1 means lesbian, gay, bisexual, transgender, queer, intersex or any 2 other nonheterosexual or noncisgender orientation or gender 3 identity or expression; 4 (4) A group of persons with disabilities, as defined in 5 NRS 426.068; 6 (5) Veterans; 7 (6) Persons who are currently serving on active duty in the 8 Armed Forces of the United States; or 9 (7) Persons who were previously incarcerated in a jail or 10 prison. 11 (c) “Veteran” means a person who has served in the Armed 12 Forces of the United States, a reserve component thereof or the 13 National Guard and was separated from such service under 14 conditions other than dishonorable. 15 Sec. 29. NRS 360.7593 is hereby amended to read as follows: 16 360.7593 1. [In] For an eligible production company that 17 submitted the application for the certificate of eligibility for the 18 noninfrastructure transferable tax credits before July 1, 2028, or 19 on or after July 1, 2043, in calculating the base amount of 20 noninfrastructure transferable tax credits pursuant to subsection 1 21 of NRS 360.7592: 22 (a) Wages and salaries, including fringe benefits, paid to above- 23 the-line personnel who are not Nevada residents must be included in 24 the calculation at a rate of 12 percent. 25 (b) Wages and salaries, including fringe benefits, paid to below- 26 the-line personnel who are not Nevada residents [: 27 (1) For the period beginning January 1, 2014, and ending 28 December 31, 2014, must be included in the calculation at a rate of 29 12 percent. 30 (2) For the period beginning January 1, 2015, and ending 31 December 31, 2015, must be included in the calculation at a rate of 32 10 percent. 33 (3) For the period beginning January 1, 2016, and ending 34 December 31, 2016, must be included in the calculation at a rate of 35 8 percent. 36 (4) For the period beginning January 1, 2017,] must not be 37 included in the calculation. 38 2. As used in this section, “fringe benefits” means employee 39 expenses paid by an employer for the use of a person’s services, 40 including, without limitation, payments made to a governmental 41 entity, union dues, health insurance premiums, payments to a 42 pension plan and payments for workers’ compensation insurance. 43 – 54 – - *AB5* Sec. 30. NRS 360.7594 is hereby amended to read as follows: 1 360.7594 1. Except as otherwise provided in this subsection, 2 the Office [of Economic Development] shall not approve any 3 application for a certificate of eligibility for noninfrastructure 4 transferable tax credits submitted pursuant to NRS 360.759 if 5 approval of the application would cause the total amount of 6 noninfrastructure transferable tax credits approved pursuant to 7 NRS 360.759 for each [fiscal] : 8 (a) Fiscal year commencing before July 1, 2029, or on or after 9 July 1, 2044, to exceed the sum of $10,000,000. [Any] Except as 10 otherwise provided in this paragraph, any portion of the 11 $10,000,000 per fiscal year for which noninfrastructure 12 transferable tax credits have not previously been approved by the 13 Office under an application for a certificate of eligibility for 14 noninfrastructure transferable tax credits submitted pursuant to 15 NRS 360.759 may be carried forward and made available for 16 approval during the next or any future fiscal year. 17 Noninfrastructure transferable tax credits that are available for 18 approval for a fiscal year commencing before July 1, 2029, but 19 have not been approved for a fiscal year commencing before 20 July 1, 2029, must not be carried forward and made available for 21 approval during any fiscal year commencing on or after July 1, 22 2029. 23 (b) Fiscal year commencing on or after July 1, 2029, and 24 before July 1, 2044, to exceed the sum of $25,000,000. An amount 25 not to exceed 50 percent of the $25,000,000 per fiscal year for 26 which noninfrastructure transferable tax credits have not 27 previously been approved by the Office under an application for a 28 certificate of eligibility for noninfrastructure transferable tax 29 credits submitted pursuant to NRS 360.759 may be carried 30 forward and made available for approval during the next or any 31 future fiscal year. 32 2. [The] Except as otherwise provided in this section, if the 33 Office approves an application for a certificate of eligibility 34 pursuant to NRS 360.759, the Office shall assign the amount of 35 noninfrastructure transferable tax credits identified under the 36 certificate of eligibility to the fiscal year in which the application 37 for the certificate of eligibility is approved. 38 3. Except as otherwise provided in subsection 1, an amount of 39 noninfrastructure transferable tax credits approved by the Office 40 under a certificate of eligibility issued to a production company 41 pursuant to NRS 360.759 that exceeds the amount of 42 noninfrastructure transferable tax credits approved by the Office 43 under a certificate of noninfrastructure transferable tax credits 44 issued to the production company pursuant to NRS 360.759 may 45 – 55 – - *AB5* be added to the amount made available for approval during 1 subsequent fiscal years. 2 4. For an eligible production company that submitted the 3 application for the certificate of eligibility for the 4 noninfrastructure transferable tax credits before July 1, 2028, or 5 on or after July 1, 2043, the noninfrastructure transferable tax 6 credits issued to any production company for any qualified 7 production pursuant to NRS 360.759: 8 (a) Must not exceed a total amount of $6,000,000; and 9 (b) Expire [4] at the end of the calendar year that is 6 years 10 after the date on which the noninfrastructure transferable tax 11 credits are issued to the production company. 12 [3.] 5. For [the purposes of calculating qualified direct 13 production expenditures: 14 (a) The compensation payable to all producers who are Nevada 15 residents must not exceed 10 percent of the portion of the total 16 budget of the qualified production that was expended in or 17 attributable to any expenses incurred in this State. 18 (b) The compensation payable to all producers who are not 19 Nevada residents must not exceed 5 percent of the portion of the 20 total budget of the qualified production that was expended in or 21 attributable to any expenses incurred in this State. 22 (c) The compensation payable to any employee, independent 23 contractor or any other person paid a wage or salary as 24 compensation for providing labor services on the production of the 25 qualified production must not exceed $750,000.] an eligible 26 production company that submitted the application for the 27 certificate of eligibility for the noninfrastructure transferable tax 28 credits on or after July 1, 2028, and before July 1, 2043, the 29 noninfrastructure transferable tax credits issued to the production 30 company for a qualified production pursuant to NRS 360.759: 31 (a) Must not exceed a total of $7,000,000; and 32 (b) Expire at the end of the calendar year that is 6 years after 33 the date on which the noninfrastructure transferable tax credits 34 are issued to the production company. 35 Sec. 31. NRS 360.7595 is hereby amended to read as follows: 36 360.7595 1. [If the Office of Economic Development 37 receives an application for transferable tax credits pursuant to NRS 38 360.759, the Office shall, not later than 10 days before a hearing on 39 the application, provide notice of the hearing to: 40 (a) The applicant; 41 (b) The Department; and 42 (c) The Nevada Gaming Control Board. 43 2. The notice required by this section must set forth the date, 44 time and location of the hearing on the application. The date of the 45 – 56 – - *AB5* hearing must be not later than 60 days after the Office receives the 1 completed application. 2 3. The Office shall issue a decision on the application not later 3 than 30 days after the conclusion of the hearing on the application. 4 4.] Except as otherwise provided in this subsection, if [the] an 5 application for a certificate of eligibility for noninfrastructure 6 transferable tax credits is approved [,] pursuant to NRS 360.759, 7 principal photography of the qualified production must begin not 8 more than 90 days after the date on which the decision on the 9 application is issued. The Office : [of Economic Development:] 10 (a) Shall prescribe by regulation the procedure for determining 11 the date of commencement of qualified productions that do not 12 include photography for the purposes of this section. 13 (b) May extend by not more than 90 days the period otherwise 14 prescribed by this subsection [.] , except that in the case of a force 15 majeure, the Office may extend the period for more than 90 days. 16 [5.] 2. A production company that produces a qualified 17 production shall submit the final assessment of the workforce plan, 18 the audit required by NRS 360.759 and all other required 19 information to the Office and the Department within the time 20 required by paragraph (d) or (e) of subsection 3 of NRS 360.759 [.] , 21 as applicable. Production of the qualified production must be 22 completed within 18 months after the date of commencement of 23 principal photography [.] , except that the Office may extend this 24 period for completion of the qualified production by not more than 25 6 months. If the Office or the Department determines that 26 information submitted pursuant to this subsection is incomplete, the 27 production company shall, not later than 30 days after receiving 28 notice that the information is incomplete, provide to the Office or 29 the Department, as applicable, all additional information required by 30 the Office or the Department. 31 [6.] 3. The Office shall give priority to the approval and 32 processing of an application relating to a qualified production that 33 promotes tourism in the State of Nevada. 34 Sec. 32. NRS 360.7598 is hereby amended to read as follows: 35 360.7598 The Office of Economic Development shall, on or 36 before [October] December 1 of each even-numbered year, prepare 37 and submit to the Governor and to the Director of the Legislative 38 Counsel Bureau for transmittal to the Legislature [an annual] a 39 report which includes, for the immediately preceding fiscal year [:] 40 and cumulatively for the period beginning on the effective date of 41 this act and ending on the last day of the immediately preceding 42 fiscal year: 43 – 57 – - *AB5* 1. The number of applications submitted for a certificate of 1 eligibility for noninfrastructure transferable tax credits pursuant to 2 NRS 360.759; 3 2. The number of qualified productions for which 4 noninfrastructure transferable tax credits were approved; 5 3. The amount of noninfrastructure transferable tax credits 6 approved; 7 4. The amount of noninfrastructure transferable tax credits 8 used; 9 5. The amount of noninfrastructure transferable tax credits 10 transferred; 11 6. The amount of noninfrastructure transferable tax credits 12 taken against each allowable fee or tax, including the actual amount 13 used and outstanding, in total and for each qualified production; 14 7. The [total] aggregate amount of the qualified direct 15 production expenditures incurred by [each] qualified [production] 16 productions and the portion of those expenditures that were incurred 17 in Nevada; 18 8. The aggregate number of persons in Nevada employed by 19 [each] qualified [production and] productions, the aggregate 20 amount of wages paid to those persons [;] and aggregated 21 demographic information concerning those persons; [and] 22 9. The number of persons employed by each qualified 23 production who were paid compensation of more than $1,000,000 24 for labor or services provided for the qualified production and the 25 total number of persons employed by each qualified production 26 who were paid more than $1,000,000 for labor or services provided 27 for the qualified production; 28 10. For each qualified production and cumulatively for all 29 qualified productions, the percentage of below-the-line personnel, 30 by occupation and in aggregate, providing labor or services who 31 were Nevada residents, calculated by dividing the number of 32 workdays worked by Nevada residents who were below-the-line 33 personnel, excluding background actors, by the number of 34 workdays worked by all below-the-line personnel, excluding 35 background actors; 36 11. For each qualified production and cumulatively for all 37 qualified productions, the percentage of below-the-line personnel, 38 by occupation and in aggregate, providing labor or services who 39 were Nevada residents, calculated by dividing the wages and 40 salaries paid to Nevada residents who were below-the-line 41 personnel, excluding background actors, for labor or services 42 provided in this State by the total wages and salaries paid to all 43 below-the-line personnel, excluding background actors; 44 – 58 – - *AB5* 12. For each qualified production and cumulatively for all 1 qualified productions, the percentage of above-the-line personnel, 2 by occupation and in aggregate, providing labor or services who 3 were Nevada residents, calculated by dividing the number of 4 workdays worked by Nevada residents who were above-the-line 5 personnel by the number of workdays worked by all above-the-line 6 personnel; 7 13. For each qualified production and cumulatively for all 8 qualified productions, the percentage of above-the-line personnel, 9 by occupation and in aggregate, providing labor or services who 10 were Nevada residents, calculated by dividing the wages and 11 salaries paid to Nevada residents who were above-the-line 12 personnel for labor or services provided in this State by the total 13 wages and salaries paid to all above-the-line personnel; 14 14. For each qualified production and cumulatively for all 15 qualified productions, the percentage of total compensation paid 16 to above-the-line personnel, by occupation and in aggregate, and 17 the percentage of total compensation paid to below-the-line 18 personnel, by occupation and in aggregate; and 19 15. The period during which each qualified production was in 20 Nevada and employed persons in Nevada. 21 Sec. 33. Chapter 231 of NRS is hereby amended by adding 22 thereto the provisions set forth as sections 34 to 40, inclusive, of this 23 act. 24 Sec. 34. As used in sections 34 to 40, inclusive, of this act, 25 unless the context otherwise requires, the words and terms defined 26 in sections 35, 36 and 37 of this act have the meanings ascribed to 27 them in those sections. 28 Sec. 35. “Account” means the Account for Nevada Film, 29 Media and Related Technology Education and Vocational 30 Training created by section 38 of this act. 31 Sec. 36. “Board” means the Board for Nevada Film, Media 32 and Related Technology Education and Vocational Training 33 created by section 39 of this act. 34 Sec. 37. “Nevada Partners Vocational Training Studio” has 35 the meaning ascribed to it in section 7 of this act. 36 Sec. 38. 1. The Account for Nevada Film, Media and 37 Related Technology Education and Vocational Training is hereby 38 created in the State General Fund. The Executive Director of the 39 Office of Economic Development, at the direction of the Board, 40 shall administer the Account. 41 2. The Executive Director may apply for and accept gifts, 42 grants, bequests and donations from any source for deposit in the 43 Account. 44 3. The Account consists of: 45 – 59 – - *AB5* (a) Money transferred to the Account pursuant to NRS 1 360.759 and section 11 of this act. 2 (b) Any direct legislative appropriations to the Account. 3 (c) Any gifts, grants, bequests and donations made to the 4 Account. 5 (d) Interest and income earned on money in the Account. 6 4. The interest and income earned on the money in the 7 Account, after deducting any applicable charges, must be credited 8 to the Account. 9 5. Any money remaining in the Account at the end of the 10 fiscal year does not revert to the State General Fund, and the 11 balance in the Account must be carried forward to the next fiscal 12 year. 13 6. Money in the Account must be used by the Office to make 14 grants to any institution within the Nevada System of Higher 15 Education, a state or local agency, a school district, a charter 16 school, a vocational trade school, a nonprofit organization, a labor 17 organization or a private postsecondary educational institution 18 that provides a program of workforce development for the 19 production of qualified productions in this State. Thirty percent of 20 the money which is distributed from the Account in the form of 21 grants must be allocated to the Nevada Partners Vocational 22 Training Studio for the operation and overhead costs of the 23 Nevada Partners Vocational Training Studio. Seventy percent of 24 the money which is distributed from the Account in the form of 25 grants must be allocated to educational and vocational training 26 organizations pursuant to section 40 of this act for the purpose of 27 providing programs of workforce development for the production 28 of qualified productions in this State. 29 7. As used in this section, “qualified production” has the 30 meaning ascribed to it in NRS 360.7586. 31 Sec. 39. 1. There is hereby created the Board for Nevada 32 Film, Media and Related Technology Education and Vocational 33 Training within the Office of Economic Development in the Office 34 of the Governor, consisting of the following voting members: 35 (a) One member appointed by the Governor; 36 (b) One member, who must not be a Legislator, appointed by 37 the Majority Leader of the Senate; 38 (c) One member, who must not be a Legislator, appointed by 39 the Speaker of the Assembly; 40 (d) One member, who must not be a Legislator, appointed by 41 the Minority Leader of the Senate; 42 (e) One member, who must not be a Legislator, appointed by 43 the Minority Leader of the Assembly; 44 – 60 – - *AB5* (f) Two members appointed by the Governor from nominees 1 selected by the lead participant in the Summerlin Production 2 Studios Project; 3 (g) One member appointed by the Governor from a nominee 4 selected by the Southern Nevada Enterprise Community Board to 5 represent the interests of the Nevada Partners Vocational Training 6 Studio; 7 (h) One member appointed by the Board of Regents of the 8 University of Nevada; 9 (i) The President of the University of Nevada, Las Vegas, or 10 his or her designee; and 11 (j) The President of the University of Nevada, Reno, or his or 12 her designee. 13 2. In appointing members to the Board pursuant to 14 subsection 1, the appointing authorities set forth in that subsection 15 shall coordinate to ensure that both the public and private sectors 16 are represented on the Board. 17 3. The members appointed pursuant to paragraphs (a), (c), 18 (e) and (g) of subsection 1, and one member appointed pursuant to 19 paragraph (f) of subsection 1, must be appointed to an initial term 20 of 2 years commencing on January 1, 2028, and the members 21 appointed pursuant to paragraphs (b), (d) and (h) of subsection 1, 22 and one member appointed pursuant to paragraph (f) of 23 subsection 1, must be appointed to an initial term of 4 years 24 commencing on January 1, 2028. After the initial terms, each 25 appointed member shall serve a term of 4 years. Each appointed 26 member serves at the pleasure of the person appointing that 27 member pursuant to subsection 1. If, for any reason, a vacancy 28 occurs during the term of an appointed member, the person who is 29 responsible for making the appointment pursuant to subsection 1 30 shall appoint a replacement qualified pursuant to that subsection 31 to serve for the remainder of the unexpired term. Each appointed 32 member may serve not more than three consecutive full terms. 33 4. At the first meeting of each fiscal year, the Board shall 34 elect from among its members a Chair and a Vice Chair. The 35 Executive Director of the Office of Economic Development shall 36 serve as the nonvoting Secretary of the Board. 37 5. A majority of the voting members of the Board constitutes 38 a quorum, and the affirmative vote of a majority of the voting 39 members of the Board is required to exercise any power conferred 40 on the Board. 41 6. The Board shall meet at least twice each calendar year but 42 may meet more often at the call of the Chair or a majority of the 43 voting members of the Board. 44 – 61 – - *AB5* 7. The members of the Board serve without compensation but 1 are entitled to receive the per diem allowance and travel expenses 2 provided for state officers and employees generally while engaged 3 in the official business of the Board. 4 8. A member of the Board who is an officer or employee of 5 this State or a political subdivision of this State must be relieved 6 from duties without loss of regular compensation so that the 7 officer or employee may prepare for and attend meetings of the 8 Board and perform any work necessary to carry out the duties of 9 the Board in the most timely manner practicable. A state agency or 10 political subdivision of this State shall not require an officer or 11 employee who is a member of the Board to make up the time the 12 officer or employee is absent from work to carry out duties as a 13 member of the Board or use annual vacation or compensatory 14 time for the absence. 15 9. As used in this section: 16 (a) “Southern Nevada Enterprise Community Board” means 17 the Southern Nevada Enterprise Community Board created by 18 section 8 of the Southern Nevada Enterprise Community 19 Infrastructure Improvement Act. 20 (b) “Summerlin Production Studios Project” has the meaning 21 ascribed to it in section 9 of this act. 22 Sec. 40. 1. The Board shall establish: 23 (a) The procedures for a person or entity to apply for a grant 24 of money from the Account; 25 (b) The criteria to be used to determine whether to approve an 26 application for a grant from the Account to an applicant; and 27 (c) The requirements for reports by recipients of grants from 28 the Account concerning the expenditures made from the grant, the 29 outcomes of the programs supported by the grant, demographic 30 data concerning the participants in the programs supported by the 31 grant and any other information deemed necessary by the Board. 32 The Board shall provide to the Office a compilation of the 33 information provided in reports made by recipients pursuant to 34 this paragraph. 35 2. The Executive Director of the Office of Economic 36 Development may provide advice and recommendations regarding 37 the procedures, criteria and requirements established by the Board 38 pursuant to subsection 1. 39 3. The Office shall not make a grant of money from the 40 Account unless the Board has approved the application for the 41 grant. 42 Sec. 41. The provisions of subsection 1 of NRS 218D.380 do 43 not apply to any provision of this act which adds or revises a 44 requirement to submit a report to the Legislature. 45 – 62 – - *AB5* Sec. 42. As soon as practicable after entering into a 1 development agreement that satisfies the requirements of section 10 2 of this act with the lead participant of the Summerlin Production 3 Studios Project described in section 9 of this act, the Executive 4 Director of the Office of Economic Development shall notify the 5 Governor and the Director of the Legislative Counsel Bureau of that 6 fact. 7 Sec. 43. The Office of Economic Development, the Nevada 8 Gaming Commission and the Nevada Tax Commission shall each 9 adopt such regulations as are respectively required to implement the 10 provisions of this act on or before December 31, 2026. 11 Sec. 44. The amendatory provisions of sections 21 to 33, 12 inclusive, of this act do not apply to any qualified production for 13 which an application for a certificate of eligibility for 14 noninfrastructure transferable tax credits is approved pursuant to 15 NRS 360.759 before January 1, 2027. 16 Sec. 45. The Legislative Counsel shall: 17 1. In preparing the Nevada Revised Statutes, use the authority 18 set forth in subsection 10 of NRS 220.120 to substitute 19 appropriately the term “noninfrastructure transferable tax credits” in 20 NRS 360.758 to 360.7598, inclusive, for the term “transferable tax 21 credits” as previously used in those sections. 22 2. In preparing supplements to the Nevada Administrative 23 Code, substitute appropriately the term “noninfrastructure 24 transferable tax credits” in NAC 360.800 to 360.865, inclusive, for 25 the term “transferable tax credits” as previously used in those 26 sections. 27 Sec. 46. If any provision of this act, or the application thereof 28 to any person, thing or circumstance is held invalid, such invalidity 29 shall not affect the provisions or application of this act which can be 30 given effect without the invalid provision or application, and to this 31 end the provisions of this act are declared to be severable. 32 Sec. 47. Notwithstanding the provisions of NRS 218D.430 and 33 218D.435, a committee may vote on this act before the expiration of 34 the period prescribed for the return of a fiscal note in NRS 35 218D.475. This section applies retroactively from and after 36 November 13, 2025. 37 Sec. 48. 1. This section becomes effective upon passage and 38 approval. 39 2. Sections 1 to 20, inclusive, and 33 to 47, inclusive, of this 40 act become effective: 41 (a) Upon passage and approval for the purpose of adopting 42 regulations and performing any other preparatory administrative 43 tasks. For the purposes of this paragraph, “preparatory 44 administrative tasks” include, without limitation, the negotiation, 45 – 63 – - *AB5* preparation and execution of a development agreement that satisfies 1 the requirements set forth in section 10 of this act and notifying the 2 Governor and the Director of the Legislative Counsel Bureau that 3 the Office of Economic Development has entered into such an 4 agreement. 5 (b) For all other purposes, on the date on which the Executive 6 Director of the Office of Economic Development notifies the 7 Governor and the Director of the Legislative Counsel Bureau 8 pursuant to section 42 of this act that the Office has entered into a 9 development agreement that satisfies the requirements of section 10 10 of this act with the lead participant of the Project described in 11 section 9 of this act. 12 3. Sections 21 to 32, inclusive, of this act become effective: 13 (a) Upon passage and approval for the purpose of adopting 14 regulations and performing any other preparatory administrative 15 tasks. 16 (b) For all other purposes, on January 1, 2027, if and only if the 17 Executive Director of the Office of Economic Development notifies 18 the Governor and the Director of the Legislative Counsel Bureau 19 that the Office has entered into a development agreement that 20 satisfies the requirements of section 10 of this act with the lead 21 participant of the Project described in section 9 of this act. 22 4. If sections 1 to 17, inclusive, and sections 19 to 46, 23 inclusive, of this act become effective pursuant to this section, those 24 sections expire by limitation on June 30, 2050. 25 H