Nevada’s Bold but Doomed Shot at Hollywood—AB 238

Written By Lily Rivera

“At In Color Studios, we champion smart, forward-thinking investments in creative infrastructure—because building a thriving film industry isn’t just about lights and cameras, it’s about policy, access, and the bold vision to keep storytelling local.”

Assembly Bill 238, dubbed the “Nevada Studio Infrastructure Jobs and Workforce Training Act,” was introduced on February 17, 2025, by Assemblymembers Sandra Jauregui and Daniele Monroe‑Moreno. It aimed to spur the creation of a 31‑acre “Summerlin Production Studios” campus in Las Vegas—including a film infrastructure tax credit program and a new entertainment district with workforce training initiatives.

What AB 238 proposed:

  • Expanding Nevada’s existing film tax credit cap from $10 million to $120 million annually (including $95 million for the Summerlin project and $25 million for other productions), over 15 years starting in 2028—a public subsidy totaling about $1.8 billion.

  • Creating a special tax zone around the studio to fund Clark County pre‑K education (estimated $11 million/year).

  • Requiring massive private capital investment (up to $1.8 billion by 2038) and imposing penalties or liens if milestones weren’t met.

Why the Senate never passed it:
Despite squeaking through the Assembly with a narrow 22–20 vote, AB 238 was derailed in the Senate. A last‑minute amendment by Sen. Roberta Lange rebranded it into a study rather than an actionable subsidy bill. Meanwhile, procedural delays and filibustering tactics by Republicans pushed the session past the midnight deadline. The bill never got a Senate vote before sine die, effectively killing it for this biennial session.

Impact on Nevada’s film industry:
AB 238 would have been Nevada’s largest-ever public subsidy, designed to anchor major studio productions (Sony, Warner Bros.) locally, create thousands of jobs, and diversify the economy. However, independent fiscal analyses warned the return-on-investment was weak—only about $0.52 in state and local tax revenue for every $1 in credits . Critics argued it risked reshuffling rather than creating lasting employment and could drain budget resources.

Final thoughts: AB 238 was a bold wager to establish Nevada as a West Coast production hub, tying hefty incentives to Hollywood-backed private investment and workforce development. But political friction in the Senate, economic uncertainties, and financial skepticism sealed its fate—for now. The film industry in Nevada will have to wait until at least the 2027 session—or until another legislative path is forged—to realize this dream.

Lily Rivera
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