REAL ESTATE NEWS

Nevada labor unions are hoping to revive a proposal to attract major film studios to the Las Vegas area through up to $95 million in state tax credits tied to a new production complex planned for the city’s western suburbs.

The tax incentive package—initially proposed for Sony Pictures Entertainment and Warner Bros. Discovery—failed to gain enough legislative support earlier this year. However, more than a dozen unions are preparing to reintroduce the measure during a special legislative session next month, according to an Associated Press report.

“We believe if we can get the public behind us, we’ll be able to get legislators to understand what a big change this can bring to Southern Nevada,” said Tommy White, business manager-secretary treasurer of the Laborers’ International Union of North America, Local 872, in Las Vegas.

Union leaders argue that attracting film production to Nevada could diversify the local economy, create thousands of jobs, and boost tourism beyond gaming. Developers behind the proposed project, known as Summerlin Studios, estimate it would generate 19,000 construction jobs.

Other U.S. markets have successfully leveraged similar tax incentives to grow their film industries. Atlanta, for example, has become known as the “Hollywood of the South” after it began offering tax credits for film production in 2008. The strategy has yielded high-profile productions, including several Marvel films and Netflix’s “Stranger Things.”

Georgia distributed an estimated $1.35 billion in tax credits in 2024 to attract major studios.

California, meanwhile, has revamped its own film tax incentive program in an effort to reverse declining production levels in Hollywood, the report noted.

The Summerlin Studios proposal calls for a 10-stage movie complex featuring hotels, a medical center, and integration into a larger master-planned community in west Las Vegas. To qualify for the tax incentives, developers would need to invest $400 million in the studio itself and $1.8 billion in surrounding mixed-use development. Over 15 years, Sony and Warner Bros. would be expected to spend a total of $4.5 billion, with tax credits becoming available once the studio is completed and filming begins.

Not everyone supports the plan. The American Federation of State, County and Municipal Employees (AFSCME)—which represents thousands of Nevada state workers—joined other organizations in urging the governor not to include the proposal in the upcoming special session.

In a joint letter, opponents argued that the film tax credits would generate only 52 cents in tax revenue for every $1 in credit issued, diverting funds from essential public services such as education, healthcare, wildfire mitigation, housing, and infrastructure.

The debate underscores a broader question facing Nevada policymakers: whether incentivizing private development through film tax credits can deliver lasting economic growth, or if the cost to taxpayers outweighs the potential benefits.

Source: GlobeSt/ALM