Nevada Assembly Passes Huge Film Tax Credit Deal for Summerlin Studio

In a tight and heated vote, the Nevada Assembly on May 30 gave the green light to a groundbreaking plan to grow the state’s film tax incentive program, clearing the path for what might become the biggest public subsidy Nevada has ever seen. Assembly Bill 238 squeaked by with a 22–20 vote and is now on its way to the Senate for final approval, with the legislative session winding down in just a few days.

Nevada Bill Proposes $1.4B in Film Tax Credits to Back Summerlin Studio Project

The bill aims to give out up to $1.4 billion in transferable tax credits over 15 years, starting in 2028, to help build a 31-acre film production campus in Summerlin. Sony Pictures Entertainment and Warner Bros. Discovery, two big names in Hollywood, are working together on this project. Howard Hughes Holdings, a real estate developer, will handle the construction.

The plan would increase the state’s current $10 million yearly film tax credit limit to $120 million, reported The Nevada Current. Out of this, $95 million each year is set aside just for productions at the planned Summerlin facility. The other $25 million would be available for other film projects across Nevada.

The plan has caused a lot of argument among politicians. People who support it say it could bring thousands of new jobs and have an impact on the economy worth billions over time. The bill’s backers, Democratic Assemblymembers Sandra Jauregui and Danielle Monroe Moreno, say this is not just giving money to big companies. They believe it is a smart move to expand Nevada’s economy beyond just tourism and gambling.

Split Vote Sends Controversial Film Studio Bill to Senate Amid ROI Concerns

Critics caution that taxpayers might pay more than they gain from this project. Two separate studies showed different views on how much the project would return on investment. A report the Governor’s Office of Economic Development ordered found the state would get back $0,52 in taxes for each dollar it spent on tax credits. Another study that the bill’s backers requested painted a brighter picture but admitted a lot of the expected gains would come in roundabout ways.

To ease financial concerns, lawmakers tacked on some changes at the last minute. These include setting up a special tax area around the planned studio. Some of the local tax money from this area would go to help early childhood education in East Las Vegas.

The voting did not follow strict party lines. Fifteen Democrats and seven Republicans backed the bill, while twelve Democrats and eight Republicans stood against it. The close call in passing the bill echoed a tight vote in 2023 for public money linked to a planned baseball park for the Oakland Athletics. If the Senate fails to act before the session ends on June 2, the bill might be put on hold until the next lawmaking period in 2027.