Nevada Senate Rejects Film Studio Development Bill

A third attempt to bring Hollywood studios to Southern Nevada met a disappointing end as Assembly Bill 5 was rejected by the Nevada Senate. The bill aimed to tie $95 million from the state's transferable film tax credit program to the development of a proposed film studio campus called Summerlin Studios. According to the Las Vegas Review-Journal, it failed with a vote of 10 to 8, needing 11 votes for passage. Assemblymember Sandra Jauregui, who co-championed the bill, expressed disappointment but acknowledged that it was part of the legislative process, stating, "I did everything I could to make my case and it just didn't have the votes."

This bill was a continuation of efforts that began in 2023, when Senator Roberta Lange first proposed a similar initiative to establish studio campuses using an expanded film tax credit program. That initial proposal did not progress past committee, nor did a simplified version introduced during the 2025 regular session. The proposed Summerlin Studios project was expected to create significant economic benefits, including 19,000 construction jobs and nearly 18,000 permanent jobs once completed.

Despite these projections, the proposal faced intense scrutiny and division among lawmakers. Critics raised concerns about the long-term fiscal impact on Nevada's budget. Senator Dina Neal voiced her frustration during the debates about the influence of special interests on the legislative process, stating it was a "referendum on special interests in this building." Opponents, including Assemblymember Jill Dickman, argued that the bill would place an immense financial burden on taxpayers without a guarantee of returns, calling it a risky investment in the uncertain film industry.

The debate was marked by procedural challenges and significant lobbying efforts. The Las Vegas Review-Journal noted that fierce lobbying from construction unions highlighted the potential job creation, while progressive groups and fiscal conservatives warned against offering substantial tax breaks to large corporations at the expense of the state’s general fund. The bill's failure signifies ongoing challenges for Nevada in diversifying its economy, which heavily relies on tourism and gaming.

The proposal would have expanded the state's film tax credits from $10 million to $120 million annually, with a total of $1.65 billion in transferable credits over 15 years. This ambitious plan aimed to entice major studios like Warner Bros. Discovery and Sony Pictures to invest in the region. However, the failure of the bill means that Nevada's existing film tax credit program remains unchanged, leaving the state to reconsider its strategy for building a robust entertainment industry. As the Nevada Legislature adjourned after the vote, the future of such initiatives now rests with the next legislative session in 2027, where similar proposals may be revisited.