Why AB 238 and Film Tax Credits Are a Flawed Bet for Nevada 

| March 4, 2025
Video Source: Assembly Committee on Revenue, uploaded to Nevada State Legislature’s YouTube

If you’ve been following the debate around AB 238, Nevada’s proposal to offer tax credits to attract film productions, you might be intrigued by the promise of economic growth and glitzy Hollywood shoots in Summerlin. But beneath the surface, this plan falls apart under scrutiny. From shaky job prospects to questionable fiscal trade-offs, here’s why we’re against it—and why it’s a bad deal for Nevada. 

1. Jobs That Don’t Last 

The big selling point of film tax credits is job creation. But the reality? These jobs are fleeting. A Michigan study pegged the average film gig at just 23 days—barely enough time to cash your first paycheck before you’re back on the hunt. For local workers, this isn’t a path to stability; it’s a series of short-term stints. Nevada deserves investments that build careers, not ones that leave the workforce scrambling when the credits roll. 

2. The UNLV Academy: A Pipeline to Elsewhere 

Supporters point to the UNLV Academy as a way to train Nevadans for film jobs. It’s a nice idea—until you realize the industry’s gravitational pull lies elsewhere. Graduates with film degrees are more likely to chase opportunities in established hubs like Georgia, California, or New York than stick around here. Rather than fostering a local talent pool, we’re footing the bill to make Las Vegas more transient than it already is. It’s less of a pipeline and more of a one-way ticket out. 

3. Creating Jobs—or Just Rearranging Them? 

Here’s a twist: the “new jobs” argument doesn’t fully hold up. Imagine a hairdresser leaving their salon gig to style wigs on a movie set. That’s not a new job—it’s a shifted one. The total number of positions doesn’t grow; it just reshuffles. This is why we argue, “Film tax credits create work, not jobs.” It’s a temporary boost in activity coupled with substitution, not a foundation for economic expansion. 

4. Transferable Credits: A Revenue Sinkhole 

Now, let’s get into the nitty-gritty of AB 238’s structure. These tax credits are transferable—meaning film companies can sell them to other businesses, like casinos, for 80 or 90 cents on the dollar. So, for every $1 credit we hand out, the state loses revenue, and that gap gets filled by everyone else—think tourism, small businesses, and taxpayers. Why should we subsidize a deal where gaming giants profit while the rest of us pick up the tab? It’s a weak link that deserves its own tagline: “Film tax credits transfer wealth, not work.” 

5. Tourism: Crowded Out, Not Boosted 

Some claim film shoots will draw tourists to Nevada. But let’s think like a visitor with $100 to spend on a Saturday. Are you hitting both a studio lot in Summerlin and the Sphere? Probably not—you’re picking one. Film activity doesn’t amplify our tourism draw; it competes with it. For a place like Vegas, already a global hotspot with the Strip and iconic attractions, this isn’t diversification—it’s a distraction that could siphon revenue from existing draws. Remember the stadium hype? This feels eerily similar. 

6. Why Sacrifice for a Hollywood Cameo? 

At its core, AB 238 asks Nevada to compromise its income for a fleeting spotlight. Why should we strain our budget—burdening industries like tourism and small businesses—just to host a movie set? Las Vegas thrives on its unique strengths: gaming, entertainment, and visitor appeal. Throwing tax dollars at Hollywood isn’t a bold economic pivot; it’s a frivolous side bet that doesn’t align with what makes us tick. We have always been teh city of innovation, coming up with concepts that are unique, so drawing an exis 

The Bottom Line 

AB 238 and film tax credits promise glamour but deliver instability. They offer short-lived work instead of lasting jobs, train talent that leaves, shift employment rather than grow it, and drain revenue through transferable credits. Add in the tourism trade-off, and it’s clear this isn’t the diversification Nevada needs—it’s a shiny but shallow investment. We should focus on reinforcing what works, not chasing a Hollywood mirage.

Speak Up

Learn more about AB 238 and what you can do to speak out against it at donthollywoodmynevada.com

At Nevada Policy, both our board of directors and staff are committed to promoting policy ideas consistent with the principles of limited government, individual liberty and free markets.

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