Committee advances Las Vegas movie studio incentive package with pre-K funding

LAS VEGAS (KSNV) — A Nevada Assembly committee advanced a bill that would create a tax incentive package for filming movies and television shows in Summerlin, while also attaching funding for pre-kindergarten.

The Assembly Committee on Ways and Means on Saturday discussed AB 238, which would establish up to $95 million each year in transferrable tax credits for filming at the proposed Summerlin Studios in west Las Vegas.

The committee approved the bill with new amendments, including to create a “production studio entertainment district” for the studio property.

This means certain Clark County taxes generated within that area, like the general operating and Summerlin Township portions of property taxes, would go toward pre-K programs managed by the Clark County School District.

Assemblymember Sandra Jauregui, the primary sponsor of the tax package, also introduced amendments to guarantee developers and partner studios — Sony Pictures and Warner Bros. Discovery — would meet their obligations, including capital and production benchmarks.

That includes a required $4.5 billion in production spending over 15 years. There would be regular check-ins to ensure the studios are meeting their obligations, Jauregui said.

The studio property could face millions of dollars in fines if the project fails to reach required milestones. Failure to move forward with construction could lead to a lien on the property, which could in turn result in the state seizing the property as collateral if the studio never materializes.

Jauregui said the amendments serve as a guarantee that the studio project will become a reality.

It’s unclear when AB 238 could receive a full vote from the Assembly. June 2 is the final day of the legislative session.

Advocates for the tax package say the development of a film studio will help diversify Southern Nevada’s economy and create new jobs.

Critics argue that tax incentive packages in other states yield little to no returns, unfairly promote certain industries over others, and divert state money away from programs in critical need of funding.

“Nevada can’t afford these handouts to corporations,” Alexander Marks, deputy director of the Nevada State Education Association, said in a statement in response to Saturday’s committee vote. “We are short $604 million in education funding this biennium and we trail the national average by $4099 per student. Throwing another $1.65 billion at a misguided corporate project won’t solve Nevada’s education crisis, it will deepen it.”

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