Opponents rally against Nevada assembly bill 238 film tax credits proposal
May 10, 2025 | 2025 Legislature NV, Nevada
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Assembly Bill 238 faced fierce opposition during the recent Assembly Committee on Ways and Means meeting, with critics arguing it represents a costly misallocation of taxpayer funds. The bill proposes $80 million in transferable tax credits for film and television productions at the Howard Hughes-owned Summerlin Production Studios, but many believe it disproportionately benefits Hollywood at the expense of local businesses and essential services.
Christian Cardenas, director of grassroots operations for Americans for Prosperity Nevada, urged committee members to reject the bill, citing a lack of evidence that such tax incentives yield positive returns. He pointed to studies showing that states with similar programs often see minimal revenue gains, with some, like Louisiana, reporting a staggering negative return on investment. Cardenas emphasized that the bill favors a select few while neglecting broader economic needs.
Eddie Diaz, strategic director for the Libre Initiative Nevada, echoed these sentiments, arguing that the bill does not serve the Latino community or hardworking Nevadans. He highlighted that the proposed tax credits would primarily benefit large productions, leaving smaller businesses and rural areas without support. Diaz called for investments that create lasting job opportunities rather than temporary positions tied to film projects.
John Tsarpalas, president of the Nevada Policy Research Institute, raised concerns about the long-term implications of diverting funds from education and essential services to support the film industry. He warned that the current trajectory could harm future generations, as the state grapples with a projected $350 million budget shortfall.
The meeting also featured voices from various organizations, including Strong Towns Las Vegas, which criticized the potential infrastructure costs associated with the tax breaks. Critics argued that the bill represents corporate welfare rather than a genuine effort to diversify Nevada's economy.
As the committee deliberates, the future of AB 238 remains uncertain, with many advocating for a more equitable approach to economic development that prioritizes the needs of all Nevadans over the interests of a few.
Christian Cardenas, director of grassroots operations for Americans for Prosperity Nevada, urged committee members to reject the bill, citing a lack of evidence that such tax incentives yield positive returns. He pointed to studies showing that states with similar programs often see minimal revenue gains, with some, like Louisiana, reporting a staggering negative return on investment. Cardenas emphasized that the bill favors a select few while neglecting broader economic needs.
Eddie Diaz, strategic director for the Libre Initiative Nevada, echoed these sentiments, arguing that the bill does not serve the Latino community or hardworking Nevadans. He highlighted that the proposed tax credits would primarily benefit large productions, leaving smaller businesses and rural areas without support. Diaz called for investments that create lasting job opportunities rather than temporary positions tied to film projects.
John Tsarpalas, president of the Nevada Policy Research Institute, raised concerns about the long-term implications of diverting funds from education and essential services to support the film industry. He warned that the current trajectory could harm future generations, as the state grapples with a projected $350 million budget shortfall.
The meeting also featured voices from various organizations, including Strong Towns Las Vegas, which criticized the potential infrastructure costs associated with the tax breaks. Critics argued that the bill represents corporate welfare rather than a genuine effort to diversify Nevada's economy.
As the committee deliberates, the future of AB 238 remains uncertain, with many advocating for a more equitable approach to economic development that prioritizes the needs of all Nevadans over the interests of a few.
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