This week, Nevada lawmakers got their first look at a proposed tax deal meant to draw film production studios to Las Vegas. Assembly Bill 238 would allocate $120 million in tax credits to movie studios and affiliated businesses over 15 years.
The proposed film industry incentive results from a deal between Warner Brothers/Discovery, Sony Pictures Entertainment and Howard Hughes Holdings. According to the terms, they would develop a 31-acre production facility in Las Vegas’ Summerlin community.
It would also require the group to invest in vocational programs to train Nevadans to work in the industry.
The companies estimate the project could have a $3 billion economic impact annually once the studios are built.
Democratic Assemblymember Sandra Jauregui is sponsoring the bill. She says the deal will help diversify the state’s economy and add as many as 17,000 permanent jobs.
“Since I was first elected, we have talked about diversifying our economy, and this session we have a real opportunity to do just that, creating careers that will support Nevada families, strengthen our middle class and shift Nevada's economy away from the boom-and-bust cycle that has defined us since our very beginning as a state.”
The measure is similar to a proposal originally introduced near the end of the 2023 legislative session. That bill never received a vote.
If lawmakers approve the current measure, developers would not receive any tax credits until Fiscal Year 2028, and then only if studio infrastructure construction is finished and the partners have invested at least $400 million into the project.
