nevada Lawmakers Reject $95 Million Film Tax Credit, Governor’s Crime Bill Faces Hurdles
Nevada lawmakers concluded a weeklong special session on Wednesday with a significant defeat for Governor Joe Lombardo, rejecting a proposal to offer $95 million in annual tax credits aimed at attracting film production to the state.The failure of the incentive, backed by a coalition of unions, represents a setback for economic diversification efforts in a state grappling with fluctuating tourism revenue.
the proposed tax credits would have been directed towards Sony Pictures Entertainment and Warner Bros. Discovery for the growth of the Summerlin Studios project – a planned facility encompassing 10 movie stages, hotels, and a medical center in the Las vegas suburbs. Despite a robust lobbying campaign exceeding $1 million, the bill fell one vote short in the state Senate Wednesday night, with the absence of three Republican senators proving decisive.
While the film tax credit faltered, lawmakers did advance some of Governor Lombardo’s key priorities, albeit with modifications. A bill restricting the access of federal immigration enforcement officials – including immigration officers – entering school grounds without a warrant or seeking student information. The governor previously vetoed a similar bill in June, deeming it “well-intentioned but fundamentally overbroad.”
The special session was largely viewed as an opportunity for Governor Lombardo,considered a vulnerable Republican facing reelection in 2026,to demonstrate legislative success. “Nevadans deserved action now – not years from now – on the issues that most impact their daily lives,” Lombardo stated in a released statement.
The film tax credit proposal, wich previously failed during the regular legislative session in June, was revived following a concerted effort by trade unions. Supporters argued the Summerlin Studios Project would generate 19,000 construction jobs and 18,000 permanent positions,providing a much-needed economic stimulus in a state experiencing a downturn in tourism.
Construction workers rallied at the legislature, emphasizing the need for employment opportunities. One organizer with Sheet Metal Workers Local 88,Alfonso Lopez,stated in a hearing,”Southern Nevada workers in general need job opportunities.” Supporters drew parallels to the construction of the Hoover Dam, which employed 21,000 people.
However, the proposal faced opposition from both sides of the aisle, with critics questioning its financial viability given projected state budget deficits. Legislative fiscal staff predict a potential deficit of up to $260 million by 2030. “That means we will have to either raise taxes or cut the already limited services that we are providing,” warned Assemblymember Selena la Rue Hatch, a Democratic lawmaker who actively opposed the bill.
Efforts to secure passage in the Assembly involved adding funding for medical expenses for retired state employees and expanding pre-kindergarten programs in the Las Vegas area.However, La Rue Hatch, a teacher from Reno, argued these additions were merely “crumbs” compared to the overall cost of the tax credit. Alexander Marks, deputy executive director of the Nevada State Education Association, echoed this sentiment, stating, “If Hollywood is the emergency, then Nevada leaders have lost the plot, and if tone deafness were taxable, perhaps our schools would be fully funded.”
Resort Corridor Court Bill Advances
In a more successful outcome for the governor, a bill to reinstate a specialized court program for crimes on the Las Vegas Strip is headed to his desk. Both the resort industry and Nevada’s powerful union coalition championed the proposal, which would revive a court that previously handled minor offenses originating from the Strip and imposed year-long bans on repeat offenders.
Supporters contend the program is essential for ensuring the safety of both tourists and workers, particularly as Las Vegas navigates a period of declining tourism. Karlos LaSane, a regional vice president with Caesars entertainment, emphasized during a hearing that “The success and failure of tourism as a destination is closely related to providing its tourists and our employees with a safe and secure environment.”
However, opponents raised concerns that the court disproportionately targeted homeless individuals without providing adequate resources. Brennan Bartley, a public defender who previously represented clients in the resort Corridor Court, argued that his clients, often experiencing homelessness, were promised support services that never materialized. “These are failed experiments that harm some of the most vulnerable among us,” Bartley stated during a hearing.
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