Las Vegas Fights to Become Film Production Hub Amid Tax Credit Debate

Nevada labor unions are advocating for tax credits to attract Hollywood filmmakers to Las Vegas, aiming to position the city as the next major film production hub alongside Atlanta. The proposal includes up to $95 million in tax incentives for major studios like Sony Pictures Entertainment and Warner Bros. Discovery, contingent upon the construction of a new film production facility in the suburbs of Las Vegas.

Earlier this year, the initiative failed to gain sufficient legislative support. However, with a special session on the horizon, unions are rallying to resurrect the idea. Tommy White, business manager and secretary treasurer of the Laborers’ International Union of North America, Local 872, expressed confidence that public backing could sway lawmakers. He stated, “We believe if we can get the public behind us, we’ll be able to get the legislators to understand what a big change this can bring to Southern Nevada.”

The push for these tax credits is underpinned by a political action committee called Nevada Jobs Now, which has raised over $1 million for advertising campaigns to promote the benefits of film production. The proposed facility, known as Summerlin Studios, is expected to generate 19,000 construction jobs and include ten movie stages, hotels, and a medical center.

Competing for Production
Las Vegas is eager to compete with cities like Atlanta, which has experienced significant growth in its film industry due to attractive tax incentives. The state of California is also adjusting its tax programs to reverse a prolonged decline in Hollywood film production. According to David O’Reilly, CEO of Howard Hughes Holdings, the production companies will only consider Las Vegas if the tax incentives are in place. He remarked, “There would be no reason for Sony and Warner to film in Nevada when they can get tax credits in 20 other states or around the globe.”

To qualify for the proposed tax credits, a minimum of $400 million must be spent on studio construction, along with $1.8 billion for a mixed-use development featuring shops and restaurants. In total, Sony and Warner Bros. would need to invest $4.5 billion over 15 years to be eligible for these incentives.

Tourism Impact
The proposal emerges as Las Vegas grapples with a decline in tourism, with the Las Vegas Convention and Visitors Authority reporting an 11.3% drop in visitors between June 2024 and June 2025. Supporters argue that establishing film studios would diversify tourism, attracting visitors beyond traditional resort-goers. “With movie studios, you bring in a whole different type of tourist,” White noted, drawing parallels to the influx of visitors generated by major sports teams.

Similar trends have been observed in Atlanta, where the film tax credit program has been in place since 2008. Stephen Weizenecker, an attorney involved in Georgia’s program, shared that tourism increased as visitors sought out filming locations from popular movies. Atlanta, often dubbed the “Hollywood of the South,” has become a key site for major productions, including Marvel films and Netflix’s Stranger Things.

Critics Weigh In
Despite the potential benefits, some organizations are opposing the tax credit initiative. The American Federation of State, County and Municipal Employees (AFSCME), which represents thousands of state workers, recently urged Governor Joe Lombardo to exclude the film tax credit proposal from the upcoming special session. They claim the proposal is “fiscally irresponsible and politically indefensible,” citing a report indicating that only $0.52 in tax revenue would be generated for every dollar spent on tax credits.

Jared Kluesner, a psychiatric nurse affiliated with AFSCME, expressed concern that prioritizing corporate tax incentives over public services could exacerbate existing issues. He emphasized that while he supports job creation through film production, it should not come at the expense of essential state services, particularly in mental health care.

As the special session approaches, the debate over Las Vegas becoming a film production hotspot continues, with supporters rallying for jobs and tourism, while critics caution against the economic implications of tax incentives.