LAS VEGAS (KTNV) — Sony Pictures Entertainment is “ready to break ground” on a new studio in the Summerlin area, while Warner Brothers plans to locate in the southwest part of the valley.

They are just waiting for the legislature to pass a new film tax credit law.

A film tax credit bill failed in 2023. That measure would have provided $190 million in tax credits each year for 20 years, equivalent to nearly $4 billion.

Senator Roberta Lange of Clark County says the measure came too late in the session, but she is prepared to reintroduce her bill. This time, the cap is set at $95 million annually for just 17 years. That’s $1.6 billion.

The money will only be paid out once the studios have produced films or television programs. It will not serve as a subsidy for the construction of the studios.

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Sony Pictures CEO Tony Vinciquerra tells us his studio is ready to make the investment.

“The government doesn’t have to spend a cent until production actually starts,” Vinciquerra said. “We and Howard Hughes will put $500 million in the ground before we’ve even done a test.”

He added that he understands why the last bill was not passed.

“It was difficult for us to explain it to the legislature. If you compare it to Allegiant Stadium, for example, you had to make the commitment up front and spend the money up front,” Vinciquerra said. “If we don’t produce anything, the state isn’t liable for anything. If we work to bring productions here, the state will help us with incentives.”

In addition to Lange, Representative Sandra Jauregui is also expected to introduce her own bill on the film tax credit. In it, Sony’s rival Warner Brothers promises to also spend a lot of money in the “Silver State” if the credit is passed.

Vinciquerra told us that lawmakers should follow the motto “the more the merrier.”

“They should consider what’s best for Nevada, and if they want to approve both, good luck. Let’s do it.”

Not everyone is in favor of the film tax credit.

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Progressive groups say the money should be used for things like education and health care. Republicans oppose the use of government funds as handouts to well-connected companies.

Some economic development studies show that tax credits do not generate the revenue to justify the expenditure, but Las Vegas’ location and reputation make expansion an obvious choice.

“The message is that it’s a no-brainer to establish an entertainment world here because people want to work here,” Vinciquerra said. “The talent, the directors, the producers, they all want to come to Las Vegas. They all want to come here because it’s the entertainment capital of the world. It’s a great place to come with the family.”

Nothing can happen right now. The state’s current film tax credit is capped at $10 million a year. That means Hollywood’s eyes will be on Carson City starting Feb. 3, when the curtain rises on the Nevada Legislature.

Learn more about Sony Pictures’ upcoming studio project

On Thursday we spoke to Vinciquerra, who said Sony has been working on a possible Las Vegas studio for at least three years.

He said his team worked with former Governor Steve Sisolak during his administration, as well as with Governor Joe Lombardo, to find a way to make the loan bill a success for everyone involved.

“This will be the only other studio Sony has available for producing movies and TV shows,” Vinciquerra said. “The plan is to build 10 sound stages, office space, wood and metal work workshops, bungalows for production crews and canteens so people don’t leave the premises on a 31-acre site. Our Los Angeles facility is about 50 acres. That’s about 65% of the size of our Los Angeles facility.”

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Vinciquerra said that not only does the talent want to work in Las Vegas, but it is also easier for the studios.

“In California, the stages are pretty busy, so there’s not a lot of growth there, so we need other places. Productions go to Europe, to Georgia, to New York, to New Jersey, to Louisiana, to Massachusetts,” Vinciquerra explained. “We’d rather have it closer to our headquarters and the talent would just love to be here.”

A new studio would also create thousands of jobs for local workers.

“The construction of the plant will create about 19,000 jobs,” said Vinciquerra. “We believe that once the plant is operational, it will create about 15,000 jobs, not only for the people who work on the site, but also for ancillary services that generate revenue for the productions.”

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Vinciquerra said the plan is to leverage skilled workers already on site and develop programs in partnership with local universities to train the next generation.

“One advantage for Nevada is that there is already a tremendous number of trained workers here. The number of shows and conventions here means we’ll have a great workforce,” Vinciquerra said. “You need the craft crews, the carpenters, the metal workers, the people who build and operate the sets. That’s the workforce that’s going to make this project work and make it a huge success.”

According to Vinciquerra, the average wage for these jobs will be $100,000 and they will be union jobs.

“I had a meeting with one of our largest unions and they will be here as soon as we have this facility. They are very excited about it.”

And as soon as the film tax credits are introduced, things can get started.

“Our plan is already in place. We’re ready to go,” Vinciquerra said. “We’ve already received approval from the Clark County Zoning Commission, so we’re way ahead of the game. As soon as we get approval from the legislature to fund the incentives, we’ll start digging and be up and running within a year.”

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The studio will be located on a 30-acre portion of a 100-acre site being developed by the Howard Hughes Corporation.

“It’s going to cost $2.9 billion to build, $2.9 billion to open,” said David O’Reilly, CEO of the Howard Hughes Corporation. “We’re going to have additional retail stores. We’re going to have hotel rooms. We’re going to have additional services and office buildings that will support this studio, the entire campus and the development of western Las Vegas.”

O’Reilly said the company will invest about $1 billion to develop the remaining area.