Nevada’s Senate Bill 220 is being sold as a golden ticket to transform the state into a film industry powerhouse, but don’t be fooled—this long-term plan could bleed taxpayers dry while handing millions to big studios. Dubbed the Nevada Film Infrastructure, Workforce Development, Education, and Economic Diversification Act, it dangles massive tax credits to lure productions and funds a shiny new training program. Yet, the price tag and shaky promises of economic glory raise serious doubts about whether this is a smart move for Nevada—or a costly mistake we’ll regret for decades.
What Is SB 220?
SB 220 builds on Nevada’s existing film tax credit program, offering financial incentives to attract film and media production companies. The program has two main components: film infrastructure tax credits and non-infrastructure tax credits, along with a new fund for education and workforce training in Southern Nevada.
Film Infrastructure Tax Credits
These credits target productions at the Nevada Studios Project, located at the UNLV Research Foundation’s Harry Reid Research and Technology Park. Production companies can claim:
- 35% of qualified expenses paid to Nevada residents.
- 30% of other qualified expenses (like equipment or services).
However, these credits decrease if companies don’t meet workforce requirements, such as hiring local workers. The credits can offset taxes like the modified business tax, insurance premium tax, or gaming license fee. The total credits issued each year are capped, with 50% of unused credits rolling over to the next year. No credits will be issued more than 15 years after the Nevada Studios Project receives its first certificate of occupancy.
Non-Infrastructure Tax Credits
SB 220 also expands tax credits for general film and media productions across Nevada, not tied to the Nevada Studios Project. Starting July 1, 2025, and running until June 30, 2043, companies can claim:
- 35% of expenses spent on Nevada-based goods, services, or workers (up from 15%).
- 30% of other qualified expenses.
The annual cap for these credits increases from $10 million to $15 million starting July 1, 2028, through June 30, 2043. Overall, transferable tax credits (which companies can sell or transfer) start at $48 million per year and grow to $83 million annually over time.
Workforce Development and Education
The bill creates the Account for Nevada Film, Media, and Related Technology Education and Vocational Training, funded by 10% of all tax credits issued. This money supports the Nevada Media and Technology Lab and workforce development programs to train Nevadans for jobs in film and media. A new board will oversee the fund, approve grants, and ensure recipients provide community benefits, such as local hiring or educational outreach.
Why SB 220 Could Be Bad for Nevada
While SB 220 aims to make Nevada a hub for film and media, critics argue it comes with significant risks that could outweigh the benefits. Here are some reasons why the bill might not be the best deal for the state:
1. High Cost to Taxpayers
The tax credits in SB 220 represent money that Nevada’s government won’t collect—money that could fund schools, healthcare, or infrastructure. With credits starting at $48 million annually and growing to $83 million, the program could drain $1.6 billion from the state budget over its lifetime (until 2043). If the economic benefits—like job creation or tourism—don’t match these costs, taxpayers could be left footing the bill for a program that primarily benefits private companies.
2. Uncertain Economic Returns
Film tax credits don’t always deliver the economic boost they promise. Studies from other states show that film incentives often create temporary jobs rather than long-term employment. Many high-paying roles in film production go to out-of-state workers, while locals are often left with low-wage, short-term gigs. The 35% credit for Nevada residents aims to address this, but there’s no guarantee companies will hire enough locals to maximize these benefits. If productions don’t spend enough in Nevada, the state may see little return on its investment.
3. Long-Term Commitment with Limited Oversight
SB 220 locks Nevada into a costly program for nearly two decades (until 2043), with tax credits tied to the Nevada Studios Project for up to 15 years after its first occupancy. If the project underperforms or fails to attract major productions, the state could be stuck giving out credits without seeing proportional economic growth. Additionally, while the new board oversees the education fund, it’s unclear how effectively it will ensure community benefits or hold companies accountable for meeting workforce goals.
4. Diverts Funds from Other Priorities
The 10% of tax credits diverted to the education and workforce fund sounds positive, but it reduces the state’s general revenue even further. Nevada already faces challenges funding public services like education and healthcare. Investing directly in schools or job training programs—not tied to a specific industry—would benefit more Nevadans and create broader economic opportunities.
5. Benefits May Favor Large Corporations
Large film studios and media companies stand to gain the most from SB 220’s generous tax credits, especially the transferable ones they can sell for profit. Small businesses or local filmmakers may struggle to compete for these incentives, concentrating the benefits among a few big players. This could limit the bill’s impact on Nevada’s broader economy and creative community.
Conclusion
SB 220 is a bold attempt to grow Nevada’s film and media industry, offering hefty tax credits to attract productions and build a skilled workforce. However, its high cost, uncertain returns, and long-term commitment raise red flags. Nevada could end up subsidizing private companies at the expense of taxpayers, with no guarantee of lasting jobs or economic growth. Before embracing SB 220, lawmakers and residents should weigh whether the potential benefits justify the risks—or if those funds could better serve the state’s broader needs.
