The Nevada Senate could vote as early as today on what might be the largest corporate handout in state history. The Nevada State Senate is poised to cast its votes on AB5, a contentious bill focused on providing a significant boost to the local film industry via tax credits.
After days of arm-twisting and backroom deals, the film tax credit bill barely squeaked through the Assembly on Sunday with a 22-20 vote. Now it’s the Senate’s turn to decide whether Nevada taxpayers should fork over $1.5 billion to Hollywood giants Sony and Warner Bros.
What’s Really in This Bill
Here’s what they’re asking for: $120 million in annual transferable tax credits to film companies across 15 years.
That’s not just a tax break where companies don’t pay taxes. These are transferable credits, meaning film studios can sell them to other businesses for cash. It’s basically writing Hollywood a check from your tax dollars.
The companies backing this deal – Sony worth $185 billion and Warner Bros. worth $55 billion – want Nevada taxpayers to subsidize their movie-making while they pocket the profits.
Why This Matters to Conservatives
This bill represents everything wrong with crony capitalism. Instead of letting the free market work, politicians want to pick winners and losers with your money.
“If the bill was good, it would sell itself. You don’t need the high-dollar lawyers to come down here and twist our arms,” said Senator Ira Hansen (R).
The fiscal impact is staggering. Legislative staff found that this deal would blow holes in the state budget. Without these film credits, Nevada wouldn’t face budget shortfalls in 2030 and 2031. With them, we’re looking at deficits of $100 million to $260 million.
Assemblywoman Selena La Rue Hatch (D) warned her colleagues:
“If we pass this bill, we are either going to have to raise taxes or we are going to have to cut services.”
The Shady Process
The way this bill moved through the Assembly should alarm every Nevada taxpayer. Two Republican lawmakers – Brian Hibbetts and Heidi Kasama – were allowed to vote remotely from their vacations. Their remote votes helped push this corporate welfare package through.
Even newly appointed Assemblyman Jason Patchett, who had just been sworn in Thursday, provided the crucial vote after initially opposing the bill. Former GOP Assemblywoman Annie Black has already hinted she might challenge him in a primary over this flip-flop.
What the Opposition Says
Critics from both sides of the aisle are calling this out for what it is – corporate welfare at its worst.
Even Governor Lombardo himself opposed this idea earlier this year. In February, Lombardo told KTNV that
“I just don’t see that being good policy, good investments for the constituents and the state of Nevada.”
Yet, here we are. It was included in the Special Session proclamation.
The False Promises
Supporters claim this will create thousands of jobs and diversify Nevada’s economy. But every state that’s tried film tax credits has the same sad story. Michigan scrapped its program. New Mexico gets back only 14 cents on every dollar spent. Georgia, once held up as the model, is watching studios flee overseas for cheaper labor.
The job numbers they’re touting rely on fuzzy math that counts anyone who might serve a film crew member coffee as a “film industry job.” Meanwhile, the entertainment industry itself is struggling. Hollywood insiders are calling 2025 the “exist ’til 26” era
What Happens Next
The Senate could vote on this bill today. Senator Ira Hansen believes it still doesn’t have the votes to pass, saying:
“Whenever you see this level of lobbying, you know there’s some real flaws in that bill.”
Conservative voters need to contact their senators immediately. Tell them to vote no on AB5. Nevada doesn’t need to bail out Hollywood. If film studios want to come here, let them pay their own way like every other business.
Every dollar given to these billion-dollar corporations is a dollar that won’t go to fixing roads, funding police, or improving schools. It’s time politicians stop playing venture capitalist with our tax money.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
