Nevada Assembly Passes $1.4B Film Tax Credit Bill for Summerlin Studio

Nevada's Assembly narrowly approved Assembly Bill 238, a measure that would expand the state's film tax credit program from $10 million to $120 million annually for 15 years, beginning in 2028, to support the development and operation of a 31-acre Summerlin Production Studios Project backed by Sony Pictures Entertainment, Warner Bros. Discovery, and Howard Hughes Holdings. The bill, which passed 22-20, allocates $95 million per year in transferable tax credits specifically for productions at the Summerlin studio, with $25 million reserved for other Nevada film projects, totaling roughly $1.4 billion in tax incentives over the period. Proponents argue this investment will diversify Nevada's economy, create thousands of jobs, and generate new revenue streams beyond tourism and gambling, while some local taxes from the designated studio district would fund pre-kindergarten programs. Critics contend the subsidies disproportionately favor one industry, potentially divert public funds from urgent needs like education, and question whether the tax incentives will yield sufficient returns, with an analysis from the Governor's Office on Economic Development suggesting the state might receive only about 52 cents in tax revenue for every dollar in credits awarded. The bill still requires Senate approval and the governor's signature to become law, with the legislative session ending imminently. If enacted, this would represent the largest public subsidy in Nevada's history, surpassing previous incentives such as those granted to Tesla Motors.