Lawmakers in Carson City are once again trying to bring the film industry to Nevada.
Assembly Bill 238, known as the Nevada Studio Infrastructure Jobs and Workforce Training Act, aims to turn Las Vegas into “Hollywood East.”
The bill would provide up to $95 million in tax credits for film studios that set up shop in the Silver State.
Sounds exciting, right? Well, not everyone thinks so. Let’s break it down.
The Argument for the Bill
Supporters say this bill is about jobs, jobs, and more jobs. They argue that bringing major studios to Nevada would mean more work for locals.
Construction workers would be needed to build new studios. Film crews would need sound engineers, camera operators, makeup artists, and other behind-the-scenes workers.
The bill also includes a workforce training program to help Nevadans learn the skills needed for film production.
If Hollywood is coming to town, the thinking goes, locals should be ready to fill those jobs.
And it’s not just talk. Big-name studios like Sony Pictures and Warner Bros. have already shown interest.
Sony says they are “shovel-ready” for a new studio in Summerlin, and Warner Bros. is working with UNLV on a project in the southwest part of the valley.
Supporters also argue that this move would diversify Nevada’s economy.
Right now, the state depends heavily on tourism and gaming. If another pandemic or economic downturn hits, having a booming film industry could keep the state afloat.
The Conservative Case Against It
Not everyone is buying it. Governor Joe Lombardo has expressed doubts, saying the plan will cost Nevada too much money. That’s a big concern for fiscal conservatives.
Under AB 238, the state would hand out tax credits – meaning Nevada taxpayers are essentially subsidizing Hollywood productions.
Critics argue that Nevada can’t afford to throw away millions in tax revenue, especially when the money could be used for schools, infrastructure, or even tax cuts for small businesses.
Then there’s the issue of long-term commitment.
Once Hollywood gets hooked on taxpayer money, will they ever stay without it? History suggests that when tax breaks dry up, the studios move on to the next state offering incentives.
Georgia, Louisiana, and even New Mexico have seen boom-and-bust cycles with film tax credits. If Nevada builds the infrastructure and Hollywood decides to leave, taxpayers could be left holding the bag.
Another problem? Film incentives don’t always create lasting jobs.
Sure, a movie production might hire locals for a few months, but what happens after the cameras stop rolling? Many jobs in the film industry are temporary, and some worry the long-term economic benefits are overhyped.
Conservative economists also argue that tax incentives for Hollywood aren’t fair to other industries.
Why should a small business owner in Reno pay full taxes while a multi-billion-dollar studio gets a break? Wouldn’t it be better to lower taxes across the board rather than picking winners and losers?
The bill has been referred to the Committee on Revenue, where it will be debated. If it passes, it could mean major changes for Nevada’s economy. But if history is any guide, expect a fight.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
