Published on: November 19, 2025, 08:49h.

Updated on: November 19, 2025, 11:58h.

A proposal aimed at attracting two major Hollywood studios to the Las Vegas area was rejected by the Nevada Senate on Wednesday evening, marking the end of lengthy discussions surrounding one of the most significant tax incentive programs in Nevada’s history. Assembly Bill 5 garnered 8 votes in favor and 10 against.

This initiative, referred to as the Nevada Studio Infrastructure Jobs and Workforce Training Act, aimed to substantially enhance Nevada’s film tax credit program from $10 million annually to an eye-popping $120 million. It was set to introduce $95 million each year for infrastructure and $25 million for film productions, totaling $1.65 billion in transferable credits over a span of 15 years.

The proposed expansion of tax credits was expected to incentivize Warner Bros. Discovery and Sony Pictures Entertainment to establish Summerlin Studios in Las Vegas, in collaboration with the Howard Hughes Corporation, the owner of the land earmarked for the studio near Town Center Drive and Flamingo Road.

Contentious Proposal

Throughout 2025, the bill caused a split among legislators. Advocates claimed that the studios would generate an investment of at least $1.8 billion in construction along with $300 million every year in production prior to becoming eligible for the infrastructure tax credits, ultimately creating thousands of jobs in both construction and permanent roles.

In addition to the tax incentives, the legislation would have established a designated entertainment district surrounding the studio area and allocated specific revenues towards pre-K educational programs in Clark County.

However, those opposed to the bill raised significant concerns regarding potential long-term financial implications.

“The bill presented to us is not beneficial for Nevada,” remarked Assemblymember Jill Dickman, R-Washoe, during the floor debate on Sunday. “It requires taxpayers to carry a hefty long-term burden while offering little more than assurances, estimates, and polished promotions in exchange.”

Assembly Bill 5 first faced a standstill this summer when the Senate failed to take action, effectively terminating it for the regular session. Nonetheless, Nevada Governor Joe Lombardo called for a special legislative session on November 13.

Following days of procedural maneuvering, the Assembly narrowly approved AB5 on Sunday, November 16, with a vote of 22–20, and later that evening a Senate committee forwarded the bill to the Senate floor with a 6–2 vote.

With its rejection in the Senate, the vision of constructing a major film production center in Las Vegas has been abandoned, leaving the existing $10 million annual film credit program in place.