Nevada Senate Rejects Summerlin Studios Film Tax Credit Plan in Close Vote

Nevada Lawmakers Reject Summerlin Studios Film Tax Credit Proposal in Special Session

In a closely watched and contentious special legislative session, Nevada lawmakers once again rejected a proposal to offer major tax incentives for the creation of a Hollywood-style film studio in Southern Nevada. Assembly Bill 5, which sought to tie $95 million in transferable film tax credits to the development of the Summerlin Studios campus, failed in the Senate by a 10-8 vote, falling short of the 11 votes needed for passage. Three senators were absent during the vote.

The defeat marks the third failed attempt in recent years to use state incentives to attract film and television production facilities to Nevada. The proposal had previously cleared the Assembly by a narrow 22-20 margin, mirroring the close divisions seen throughout the legislative process.

Proponents, including Assemblymember Sandra Jauregui, argued that the measure would bring thousands of construction and permanent jobs to the state, with labor unions predicting 19,000 construction jobs and nearly 18,000 ongoing positions once the studios were operational. Jauregui, who is leaving the Assembly to run for lieutenant governor, expressed disappointment but acknowledged the result as part of the legislative process.

Opponents-including progressive groups, public sector unions, and fiscal conservatives-criticized the bill as an unfair giveaway to large corporations that would undermine the state's general fund. Legislative fiscal analysts warned that the proposed incentives could push Nevada's general fund below required balances as early as 2030, potentially forcing budget cuts or tax increases.

The proposal's failure followed intense lobbying from both sides. Construction trades unions formed a political action committee to push the legislation, while other organizations voiced strong opposition. During floor debates, lawmakers highlighted the pressure and political maneuvering surrounding the bill. Senator Dina Neal called the vote a "referendum on special interests," and Senate Minority Leader Robin Titus emphasized lawmakers' responsibility to act in the state's best interests regardless of external lobbying.

Procedural disputes also marked the session, including debates over remote voting by two Las Vegas Republican Assemblymembers and efforts to fast-track the bill as an emergency measure.

Had it passed, AB 5 would have required $1.8 billion in capital investment by 2039 and $4.5 billion in direct production spending over a 15-year period ending in 2044, with tax credits becoming available in 2029.

With the bill's defeat, the future of large-scale state-backed film production facilities in Nevada remains uncertain, leaving the issue to be revisited-if at all-by a future Legislature.

 


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