Nevadans came closer than many realize to making a very expensive mistake.
Last month’s special session of the Legislature ended with lawmakers rejecting a bill that would have handed out massive film tax credits to lure a Hollywood-style studio to Nevada.
At the time, supporters promised jobs, prestige, and a shiny new industry. But a new Wall Street Journal report shows exactly why Nevadans should be thankful that deal fell apart.
What’s happening in Hollywood right now is not a success story. It’s a warning.
Hollywood Is Shrinking, Not Expanding
According to the Wall Street Journal, the U.S. film and TV business is in the middle of its most painful correction in decades.
Hackman Capital Partners, the largest independent owner of soundstages in the country, is struggling with high vacancy rates and falling rents.
This is not a small player. Hackman owns more than 60 soundstages tied to famous shows like Seinfeld, Parks and Recreation, and Big Brother.
Even with that pedigree, demand is drying up.
“The whole ecosystem is really under distress,” said Michael Hackman, the company’s founder and CEO.
That distress is not limited to one company. Streaming production has slowed sharply as studios cut costs and shift focus from growth to profits.
According to data firm ProdProp, nearly 30 percent fewer large film and TV projects began shooting in 2024 compared with 2022. That decline continued into 2025.
In simple terms, Hollywood built too much, too fast. Now it’s pulling back.
Why Nevada Was Being Sold a Fantasy
Supporters of Nevada’s film tax credit push argued that building soundstages here would create a long-term economic engine. But Hollywood’s own landlords cannot fill the studios they already have.
Even worse, consolidation is making the problem bigger.
If Netflix or Paramount ends up controlling Warner Bros. Discovery, production is likely to be shifted to studios those companies already own. That leaves independent studios empty and struggling.
That matters for Nevada because any studio built here would depend heavily on taxpayer subsidies just to stay competitive.
When production slows, those subsidies do not disappear. Taxpayers are still on the hook.
It’s like building a luxury hotel when tourism is already dropping, then promising locals it will somehow pay for itself.
The Global Subsidy Race Never Ends
Hollywood is also fleeing the United States for cheaper labor and bigger government handouts overseas.
Europe, Canada, and Australia are dangling richer incentives, often backed by national governments.
Hackman himself said future success may depend on government help to offset foreign advantages.
That should raise a red flag for Nevadans who believe in limited government and fiscal responsibility.
If Hollywood needs constant public support in Los Angeles, why would Nevada think it can win that race without writing even bigger checks?
What Supporters Say, and Why It Falls Short
Supporters of film tax credits argue that they bring jobs and diversify the economy. Some point to temporary construction work or short-term production spending.
But those benefits fade quickly. The costs do not.
Nevada has seen this movie before. Promises are made up front while taxpayers carry the risk on the back end.
A Smart Call, for Now
Nevada lawmakers ultimately rejected the studio tax credit proposal during the special session. That decision spared Nevada from locking itself into a costly gamble at exactly the wrong time.
Hollywood is not expanding. It is contracting.
Nevada’s strength has always been knowing when to walk away from a bad bet. Last month, the state did just that.
The smart move now is to remember this lesson the next time Hollywood comes knocking with another glossy pitch deck.
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.
