Film Tax Credit Bill Dies at Sine Die, Marks Victory for Fiscal Responsibility

Late Amendment by Senator Lange Renders Movie Studio Subsidy into Interim Study; Senate Runs Out of Time

CARSON CITY – Today, as the Senate prepared to amend AB238, a massive expansion of the state’s film tax credit program, shifting it to a study into the potential impacts of such a film tax credit program, the 83rd legislature ran out of time for legislative business, leaving the bill to die in the Senate before it could see a vote.

A recent analysis commissioned by the Governor’s Office of Economic Development found the measure would have a negative return on investment for every single public dollar invested by the state.

Alexander Marks, Deputy Executive Director, Nevada State Education Association, issued the following statement:

“As the credits roll on the 83rd Session, the title card finally reads 'Schools Over Studios.’

For 120 days, educators and advocates stood united with one resounding message for Nevada lawmakers: Schools Over Studios. It’s the storyline our students deserve, a script grounded in better priorities, not backlot fantasies. Lawmakers were asked to greenlight $1.65 billion in public money for a Tinseltown Tax Cut, an economically debunked scheme with flashy promises and little return. Meanwhile, Nevada students were offered just a $2 per-pupil increase, a de facto education cut.

Educators did their homework and knew the truth that this giveaway wouldn’t solve the education crisis, it would worsen it. By defeating the Hollywood Handout, we made it clear that public funds should serve the public good, not bankroll private profits. The budget impacts of tax credits are real. Nevada will lose $160M in general fund revenue over the next two years, a number that would have increased by $110M with this bill.

Every dollar matters in a state ranked 47th with the largest class sizes in the country and still trailing the national average by over $4,000 per student. When we say Schools Over Studios, it’s not just a slogan, it’s a commitment to our future.

Fin.”

Shelbie Swartz, Executive Director of Battle Born Progress, issued the following statement:

“We’re glad lawmakers saw reason at the 11th hour and when the chips were down, legislative Democrats wanted to choose fiscal responsibility over corporate handouts. Because the reality is that other states across the country know exactly how much of a black hole film tax credits are. By definition, they engineer a race to the bottom that lines Hollywood suits with taxpayer cash. Nevada’s economy deserves diversification. However, we cannot and should not forget that Gov. Joe Lombardo’s office knew that these proposals would be a disaster. His office had numbers in hand, and yet he kept those numbers secret until they were leaked to the press. The Governor was willing and able to compromise the economic future of our state for a political win, and we are grateful that our Democratic leaders ultimately chose fiscal responsibility once that information came to light. For now, however, we hope this session gives Nevadans the insight this issue deserves.”

Stacey Shinn, State Director of the State Innovation Exchange Action, issued the following statement:

"At the eleventh hour, Nevada lawmakers made the right call by moving to gut AB238 and turning it into a study instead of a blank check, but legislative deadlines won out. Headlines made it clear: this was a billion-dollar boondoggle that would have drained our public funds while giving Hollywood studios a sweetheart deal. Meanwhile, Governor Lombardo sat on GOED reports that showed just how disastrous this would be for our state’s budget and services. It’s unacceptable. Nevadans deserve transparency and leadership, not deals that sell out our future. We applaud the Legislature for attempting to hit pause before handing away billions in taxpayer money with no strings attached.”

Andrew Clarke, Revenue Coalition Manager of New Day Nevada issued the following statement:

“As the legislature moved to amend AB238 into a study rather than a billion-dollar handout, we welcomed this bold and necessary step, though the clock stopped on the 83rd Legislative Session before action could be taken. Nevada’s record with massive corporate tax deals, from the Tesla megadeal to countless tax abatements, reveals a pattern: big business enters, exploits the system, and leaves everyday Nevadans footing the bill.

This amendment was a bold statement by Democratic leadership that the line in the sand is a budget that invests in the future growth of our state without cow-towing to corporations. By choosing to study the film industry’s real impact before writing a billion dollar check, lawmakers are standing up for transparency, accountability, and a future built on facts—not corporate deceit. Nevadans deserve economic policy rooted in equity and evidence.

Tess Opferman, Nevada Women’s Lobby, issued the following statement:

“We are relieved that the Nevada Legislature attempted to take the courageous step forward to turn AB238 into a study, though the vote did not beat the sine die deadline. The fact is, the math never made sense. Giving significant tax breaks to corporations doesn’t mean more money to our working families. Nevadans are struggling with healthcare, housing, and education. On a daily basis, they are trying to make ends meet. Rather than giving billionaires tax breaks, we need to think about those working day in and day out to afford their rent and mortgage, childcare and healthcare. The legislature saw through the smoke and mirrors and hoped to look a little more closely at this Hollywood panacea.”

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