Nevada Senate Rejects Film Studio Development Proposal

A third attempt to bring Hollywood studios to Southern Nevada has failed in the Nevada Senate. According to the Las Vegas Review-Journal, Assembly Bill 5, which aimed to tie $95 million of the state's transferable film tax credit program to the development of a film studio campus called Summerlin Studios, was voted down 10 to 8.

This proposal was part of a special legislative session and required a majority of 11 votes to pass but ultimately did not secure enough support. Assemblymember Sandra Jauregui, who co-championed the proposal and is not seeking re-election, expressed disappointment, stating, 'I did everything I could to make my case and it just didn’t have the votes.' This failure marks the latest chapter in a multi-year effort to attract film and television studios to Nevada through state incentives.

The Las Vegas Movie Studio Bill was a significant initiative, proposing to massively expand Nevada's film tax credits from $10 million per year to $120 million, which would have included $95 million for infrastructure credits and an additional $25 million for productions, amounting to $1.65 billion in transferable credits over 15 years.

Supporters argued that these studios would lead to an investment of $1.8 billion in construction and create thousands of jobs. However, the proposal faced fierce opposition, with critics arguing that the bill would impose significant long-term costs on taxpayers without guaranteed returns.

Assemblymember Jill Dickman, a Republican representative from Washoe, voiced concerns during the debates, stating, 'It asks taxpayers to shoulder enormous long-term costs, while offering little more than promises, projections and glossy marketing in return.' The bill had previously passed in the Assembly narrowly, with a 22-20 vote, but failed to gain the necessary support in the Senate, as reported by Casino.org News.

The intense lobbying efforts from special interest groups and unions were a significant factor in the contentious debates surrounding the proposal. Lawmakers from various backgrounds engaged in heated discussions, with some feeling pressured by lobbyists and special interest groups.

The bill's defeat means that Nevada's existing $10 million annual film credit program remains unchanged, and the future of film and television production in the state remains uncertain. The failure of Assembly Bill 5 underscores the ongoing challenges and debates surrounding film industry development in Nevada and raises questions about the state's approach to attracting major film studios in the future.