Hollywood Hustle: The Democrats’ $1.5 Billion Film Credit Scam

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Nevada lawmakers are once again being sold a shiny new dream — a so-called “Studio Infrastructure and Workforce Training Act” — that’s really just another Hollywood handout dressed up as “economic diversification.”

Assemblywoman Sandra Jauregui (D-Clark) claims her bill is “a smart investment in diversification, workforce training, and community growth.”

In reality, it’s a $1.5 billion tax giveaway to an industry that, as former Nevada economic development chief Michael Brown recently wrote in the Review-Journal, “does not pencil out.”

A Costly Mirage

Hollywood insiders are calling 2025 the “exist ’til 26” era. The entertainment industry is in a “downward spiral,” according to the Wall Street Journal report Brown cited.

Yet Jauregui and a handful of Democrats – and even some misguided Republicans – want Nevada taxpayers to foot the bill for it.

Under the plan, movie studios could receive up to $1.5 billion in transferable tax credits — credits that can be sold to other corporations to offset their taxes.

That means even companies that have nothing to do with filmmaking could end up profiting while Nevada’s general fund loses out.

Veteran GOP political consultant Sig Rogich didn’t mince words when asked about it this week on Nevada Newsmakers:

“I think it’s a mess. I don’t think it’s good for our state. I call it a big boondoggle. … The film industry has made deals in 30 states. I don’t know any of them that have worked.”

He’s right.

Michigan scrapped its film program. New Mexico gets back only 14 cents on the dollar. Even Georgia — once touted as the model — is seeing studios flee for cheaper labor overseas.

Jobs That Vanish When the Cameras Stop Rolling

Supporters claim the proposal will create “tens of thousands of good-paying jobs.”

But as Brown explained, those figures rely on “induced job” models — fancy economic math that inflates numbers by counting restaurant servers or Uber drivers who might serve film crews.

Actual, permanent jobs are another story.

Rogich warned the same thing:

“It’s not a long-term job creator. It’s a short-term deal while they build the studios. … After that, they’re going to bring in the experts to film. They’re not going to hire Nevadans.”

That’s the pattern nationwide.

A National Bureau of Economic Research study found film subsidies mainly benefit out-of-state specialists who hop from project to project.

In Massachusetts, two-thirds of the wages paid through their program went to non-residents.

AI and “Woke” Hollywood Don’t Need Nevada’s Help

Even Tyler Perry — one of Hollywood’s most successful producers — hit pause on an $880 million studio expansion because of artificial intelligence.

“Many jobs will be lost,” Perry warned.

If Hollywood itself is bracing for AI-driven layoffs, why on earth should Nevada bet billions of taxpayer dollars on an industry that may soon automate away its own workforce?

Rogich also pointed out the cultural cost:

“Why are they leaving Hollywood? Why would we want to Hollywood-ize Nevada? Who the heck wants those people here? … I don’t like the woke mentality that comes with it.”

Nevada has worked hard to keep its business climate welcoming and balanced. Inviting Hollywood’s politics and payroll inflation is the opposite of that.

Republican Leaders See the Danger

Senate Republican Minority Leader Robin Titus has said there’s “no support” among Republicans for a special-session revival of this bill (Nevada News & Views, May 2025).

She meets weekly with Gov. Lombardo and has been “not real thrilled about the film tax credit scene,” as Rogich put it.

Titus is right to be skeptical. Every dollar given away in film credits is a dollar not spent on schools, infrastructure, or public safety.

In addition, Las Vegas Review-Journal columnist Victor Joecks noted this week that Gov. Lombardo himself expressed opposition to the proposal during the last legislative session, saying in an interview with Nevada hall-of-fame journalist Steve Sebelius:

“I just don’t see that as being good policy, good investments for the constituents and the State of Nevada. And you also have to be really careful in trying to convince the public it’s a good way to do business when they see that there’s such massive companies and there’s a need in there.”

Rogich summed it up perfectly:

“We’re giving away tax credits to an industry that has never performed. … It’s not smart business.”

A Better Way Forward

If Nevada wants to create real jobs, it should invest in manufacturing, logistics, and water-efficient infrastructure — not temporary movie sets.

As Brown wrote, “The opportunity today lies in manufacturing.”

That’s where long-term, high-wage employment comes from — not from propping up a struggling industry built on subsidies and sequels.

Hollywood may be running out of ideas. Nevada shouldn’t run out of common sense.

The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.