When most folks hear about tax credits going to Hollywood studios, it’s easy to roll your eyes. After all, Nevada isn’t exactly short on ways government spends money.
But a new proposal working its way through the legislature might actually be worth a closer look.
Assembly Bill 238 (AB 238) would offer up to $1.8 billion in tax credits over 15 years to attract major film productions to Nevada.
And while that sounds like a big number – and it is – supporters say it’s designed to bring long-term economic benefits and help Nevada finally branch out from its dependence on gaming and tourism.
The plan centers around a 31-acre film studio project in Summerlin, a Las Vegas suburb.
Big names like Sony Pictures, Warner Bros., and Howard Hughes Holdings are lined up to make it happen.
Supporters argue this isn’t about giving handouts to Hollywood elites. It’s about planting the seeds now to grow a new industry that can create thousands of local jobs for Nevada workers.
“This has no impact on the current budget,” Assemblymember Sandra Jauregui explained during a hearing, according to Nevada Current.
That’s because the credits wouldn’t even start until 2028. For now, the only cost to taxpayers is about $206,000 to add some staff at the Nevada Film Office to manage the program.
In other words, Nevada gets time to plan, adjust, and prepare.
Betting on the Long Game
Let’s be honest — Nevada’s economy is tied up in some unpredictable industries.
Gaming and tourism have been good to the state, but when times get tough, like they did during COVID shutdowns, things go south fast.
That’s why many in Carson City say it’s time to think outside the casino.
Assemblymember Danielle Monroe-Moreno, one of the bill’s sponsors, put it this way: “We have a responsibility to find ways to diversify our revenue streams in the state of Nevada.”
And for folks worried about whether the economy might still be shaky come 2028?
Lawmakers are talking about adding “guardrails” to make sure the program doesn’t move forward if the state’s financial footing isn’t ready. That’s a smart, cautious approach.
It’s not about throwing money around now. It’s about setting the table for future growth – and making sure that if the numbers don’t pencil out later, the state can adjust course.
Jobs, Growth, and New Opportunities
Supporters of the bill point to examples like WrestleMania 41, which is expected to bring $200 million in economic activity to Las Vegas this year.
Some critics raised concerns that the tax credits could be larger than what these events directly spend on local labor and businesses.
But supporters say that misses the bigger picture.
The ripple effects – hotel stays, restaurants, transportation, and more – pump money into local communities in ways that aren’t always captured on paper.
Jauregui made it plain: “This legislation will generate $3 billion in annual economic activity. That is WrestleMania 15 times a year.”
That’s no small potatoes.
And if Nevada wants to be seen as more than just a place to gamble, these kinds of projects might help the state get there.
A Calculated Risk Worth Considering
To be clear, conservatives are right to raise eyebrows when government starts talking about tax breaks and big projects. But this isn’t some reckless spending spree.
The money doesn’t come out of the state budget today, and the credits only get used when actual production work happens in Nevada.
Plus, the bill is structured so that the studios have to invest their own dollars upfront. If they don’t, they don’t get the tax credits.
It’s a pay-for-performance model – something conservatives have long championed in government programs.
It’s okay to be skeptical, but it might also be time to be open-minded.
Nevada’s leaders are trying to position the state for the future, and that means taking some calculated risks to attract new industries and new jobs.
At the very least, lawmakers are building in options to pause or adjust if the economy doesn’t improve.
Bottom line? AB 238 may not be a perfect script, but it’s one worth reading all the way through before anyone yells, “Cut!”
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
