The Nevada Assembly recently passed Assembly Bill 238 with a narrow 22-20 vote, aiming to significantly expand the state’s film tax credit program to aid the development of a new film studio, Summerlin Studios. This project, proposed by Howard Hughes Corp., plans to establish a 31-acre studio complex expected to generate a $3 billion economic impact upon completion. The bill suggests allocating $95 million annually in film tax credits over 15 years beginning in 2028. It now awaits consideration by the Nevada Senate as the legislative session nears its end.
In addition to AB 238, Senate Bill 220 also seeks to expand film tax credits to support a film studio and technology campus at UNLV’s Harry Reid Technology and Research Park. However, this bill has yet to progress out of the Senate Finance Committee due to concerns over its fiscal impact.
Despite the economic stimulation these projects promise, recent reports indicate that neither proposal is likely to generate enough tax revenue to cover their costs, projecting a return of only 52 cents for every dollar spent on tax credits. The current film tax credit program in Nevada is capped at $10 million annually. The expansion proposals have sparked considerable debate, with proponents citing economic benefits and opponents questioning their fiscal sustainability and suggesting alternative uses for state funds.
