From KSNV Las Vegas

Assembly narrowly passes $1.4B film tax package for Las Vegas studio

LAS VEGAS (KSNV) — A tax incentive package that would allocate $1.4 billion for film productions in Las Vegas narrowly passed through one legislative chamber.

The Assembly on Friday voted 22-20 in favor of AB 238, also known as the Nevada Studio Infrastructure Jobs and Workforce Training Act.

The bill still needs Senate approval before it can arrive at Gov. Joe Lombardo's desk. Monday, June 2, is the final day of the legislative session.

AB 238 is tied to the proposed Summerlin Studios, a facility that would be built in the west Las Vegas area. The measure would create up to $95 million in transferable film tax credits over 15 years, starting in 2028, to lure more movie and television productions to the region.

Howard Hughes Corp., which oversees the Summerlin master-planned community, would develop the studio with backing from Sony Pictures and Warner Bros. Discovery.

An amendment introduced last week directs some local taxes generated within a special "studio district" to pre-kindergarten programs.

Supporters, including several trade unions, say the bill would help bring new jobs to Southern Nevada and diversify the region's economy.

Critics argue that film tax incentives unfairly promote one industry over others and direct public money away from areas that more urgently need support, like education.

There is also a question of whether the incentives would yield any returns in terms of new tax revenue.

An analysis commissioned by the Governor's Office on Economic Development found the tax revenue generated by a film studio likely would not sustain the incentives created to lure them to Nevada.