Push for two Nevada movie studio bills ramps up as debate continues

LAS VEGAS, Nev. (FOX5) – Lawmakers and supporter of two bills for tax credits for movie studio campuses are ramping up their calls for approval, as both face further support and scrutiny amid the state’s projected shortfalls.

The clock is ticking until the end of the 2025 Legislative session.

Assembly Bill 238, backing the joint venture at Summerlin Studios between Warner. Bros. and Sony Pictures, remains in the Ways and Means Committee.

Senate Bill 220 –supported by Birtcher Nevada Development and the MBS Group at the Harry Reid Research & Technology Park–remains in the Finance Committee.

Both bills are expecting a hearing within days.

Supporters of each bill, and trade unions who support both, argue for a need for economic diversification and a rapid infusion of revenue streams amid slumping tourism and high unemployment, touting each legislation’s own benefits.

 On Thursday, lawmakers were informed by the state’s Economic Forum of a $191 million shortfall over two budget cycles. Friday, lawmakers told FOX5 that the State Education Fund will also see a decrease of more than $150 million.

FOX5 spoke with Assemblymember Sandra Jauregui on A.B. 238, who argues that the bill is more crucial than ever for Nevada’s economy.

“We cannot afford to lose this opportunity. We cannot afford to not do this during a time when our economy is going to slow down, which means tourism is going to slow down, which means our revenue is going down as projected by the Economic Forum. This is the perfect time to bring a new economy, new revenue into our state,” Jauregui said, noting that tax credits do not kick in until 2028, or after a proposed movie studio campus is built and a filming project has wrapped up.

A.B. 238 proposes a $120 million tax credit package over 15 years for productions at Summerlin Studios. The bill mandates that half of the 15,000 annual workers would be Nevadans.

Proponents of S.B. 220 and the “Nevada Film Infrastructure, Workforce Development, Education and Economic Diversification Act” echo the need for economic diversity and also higher education support, as federal funding cuts threaten learning and training opportunities for young Nevadans.

S.B. 220 will provide around $100 million in tax credits for 15 years, with a three-year “ramp-up.” According to bill proponents, the project would generate around 9,000 jobs a year, and through the lifespan of the project, generate $80.5 billion in economic impact.

The Nevada State Education Association has strongly opposed the potential negative fiscal impact of both bills, arguing for lawmakers to prioritize critical funding that’s needed for Nevada schools.

“We have a looming federal budget crisis that could potentially cut hundreds of millions of dollars from our education programs, and for some reason Carson City is entertaining another Hollywood handout,” said Alexander Marks of the NSEA.

 “We can’t afford giant tax credits to corporations…the biggest plot twist right now is that the state budgets’ education funding is only increasing by two dollars,” he said, urging lawmakers to pass the Commission on School Funding’s plan for education.

Other lawmakers have already voiced concerns.

“I believe Las Vegas and Nevada are great the way we are, we don’t need to try and be Hollywood 2.0 on the backs of the taxpayers,” said Senate Republican Leader Robin Titus, in a statement this year to FOX5.

Both bills argue a “net positive” effect: for every $1 of tax credits given, more than $1 will be returned in tax revenue and economic infusion.

Others debate the return on investment, or ROI: for every $1 given in tax credits, how much will the state get back in direct or indirect revenue?

Film productions generate direct revenue for the state from sales taxes and payroll taxes. Productions utilize and hire various other businesses in the community.

Some have expressed concerns over ROI.

“You’d be hard pressed to find an economist or an economic development professional who would say this is a great investment. Essentially, they are a negative balance on the general fund,” said Dr. David Damore of UNLV think-tank The Lincy Institute, urging scrutiny if Nevada lawmakers seek to utilize tax credits.

The 2025 legislative session was a topic of a panel at the Vegas Chamber “Preview Las Vegas” event in January.

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