The Keystone Corporation opposes AB5, the Film Tax Credits bill, due to fundamental fiscal concerns that threaten state budget stability during an economically uncertain period.
The bill’s own economic analysis projects an 80% loss, returning only $0.20 per dollar invested.
This is a pattern consistently seen in government audits across multiple states.
Transferable credits allow corporations outside the film industry to convert film subsidies into their own tax reductions, further eroding state revenue when fiscal stability is most needed.
The film industry is currently experiencing significant contraction. Major studios have been implementing layoffs and reducing production.
Unlike recession-resistant industries, entertainment production is highly cyclical and speculative.
This creates risk for both immediate budget planning and long-term capital investments.
Additionally, the bill’s weak insolvency protections could prevent the state from recovering these credits if production companies fail.
Sound fiscal policy requires asking whether subsidizing an industry at an 80% loss serves the state’s highest priorities.
Those same resources could support education, infrastructure, or other less volatile industries.
Keystone Corporation urges all members of both the Nevada Assembly and State Senate to vote NO on this bill.
