Three rates, depending on who gets paid
Nevada's program is a transferable tax credit. Film Nevada splits qualified spend by who receives it:
| Spend category | Credit rate |
|---|---|
| Production costs (goods and services from Nevada businesses) | 15% |
| Resident above-the-line wages | 15% |
| Resident below-the-line wages | 15% |
| Nonresident above-the-line wages | 12% |
| Nonresident below-the-line wages | 0% |
The zero on nonresident below-the-line crew is the number that changes a budget. If you fly in a DP, gaffer, key grip, and their seconds from Los Angeles, their wages still have to be paid, but none of it earns credit. A line producer planning Nevada should build the crew list from local hires first and price the travel crew as a cost with no offset.
Two bonuses sit on top, each worth 5% of cumulative qualified production costs:
- More than 50% of the below-the-line crew are Nevada residents.
- More than 50% of filming days happen in a county where qualified productions spent under $10 million in each of the two years before your application. Film Nevada decides which counties pass that test, so ask before you count on it for a Las Vegas or Reno schedule.
Worked example: $1,000,000 in Las Vegas
A thriller with a $1,000,000 budget spends $650,000 in Nevada, which clears both the 60% test ($600,000) and the "greater than $500,000" minimum. The Nevada spend breaks down:
- Production costs from Nevada vendors: $350,000 x 15% = $52,500
- Resident BTL wages: $150,000 x 15% = $22,500
- Nonresident ATL wages (director and two leads): $80,000 x 12% = $9,600
- Nonresident BTL wages (DP and 1st AC): $70,000 x 0% = $0
Base credit: $84,600. Resident crew is 18 of 26 BTL hires, more than 50%, so the first bonus applies to cumulative qualified costs. Using the three credited categories ($580,000):
- Resident crew bonus: $580,000 x 5% = $29,000
- Total: $113,600, about 11.4% of the full budget
Ask Film Nevada whether the $70,000 of nonresident crew wages counts toward "cumulative qualified production costs" for the bonus base, since the rate table gives it 0%. The example above leaves it out. The qualified spend definitions in the program regulations govern.
At $5,000,000 with $3,500,000 in Nevada and a similar mix, the credit lands in the $600,000 range, well under the $6,000,000 project cap. The limit that bites is the $10,000,000 statewide annual funding. Two large features could exhaust a year.
Caps on above-the-line pay
Film Nevada limits how much producer and star pay can count:
- Nevada resident producers: up to 10% of total qualified expenditures
- Non-Nevada producers: up to 5% of total qualified expenditures
- Any individual or loan-out corporation: $750,000
Nevada doesn't require loan-out withholding or loan-out registration, which saves your payroll company some paperwork compared with other states.
Application steps and timing
- Register the production company with Film Nevada and request the application package at info@film.nv.gov.
- Apply before principal photography. Your application goes to a public hearing, and the documents become public record, so leave budget numbers you consider sensitive out of attachments that aren't required.
- Start principal photography no later than 90 days after approval, and finish within 18 months.
- Carry $1 million in general liability and proof of workers' comp.
- Submit an audit from a Film Nevada-approved CPA firm within 270 days of completion.
- Nevada issues the credit. It must be used within four years, and you have to notify the state before transferring it.
Because the credit only exists after the audit, most indies either sell it or borrow against the approval letter. How film tax credits work explains the lending side.
Nevada against nearby states
Nevada's 15% base is modest. Oregon, for comparison, rebates 25% of goods and services and up to 26.2% of in-state payroll for projects spending $1 million or more (see Oregon). Check California, Utah, Arizona, and Idaho before committing to a Vegas shoot, or compare them side by side on the incentives page and in the incentive calculator.
Storiara's budgeting feature keeps above-the-line, below-the-line, post, and other costs in separate sections.