Hollywood might soon have a new neighbor — and not the kind it can ignore.

In what could become one of the most consequential production shake-ups since Georgia’s film boom, Nevada labor unions are pushing hard to lure major studios to the Las Vegas area with a proposed $95 million film tax credit package. The move, designed to attract Sony Pictures Entertainment and Warner Bros. Discovery, could transform a portion of West Las Vegas into a multi-billion-dollar entertainment district — and ignite a fierce new chapter in the state-to-state race for production dollars.

The project, known as Summerlin Studios, would feature 10 soundstages, hotels, restaurants, retail, and even a medical center — part of a $4.5 billion, 15-year commitment that developer Howard Hughes Holdings says would generate 19,000 construction jobs and a new permanent creative workforce.

But the plan has sharply divided the state — with labor leaders calling it a once-in-a-generation economic opportunity, and critics warning it’s an expensive gamble that could drain Nevada’s public resources.

Hollywood in the High Desert

Movies like Ocean’s Eleven and The Hangover helped make Las Vegas a pop culture playground, but despite its global name recognition, the city never built the infrastructure to compete with Atlanta, London, or even Albuquerque.

That could change fast.

“We believe if we can get the public behind us, we’ll be able to get legislators to understand what a big change this can bring to Southern Nevada,” said Tommy White, business manager of the Laborers’ International Union Local 872, which helped form a new political action committee called Nevada Jobs Now. The group has raised over $1 million to fund a statewide campaign of ads, mailers, and events to rally support ahead of an expected special legislative session later this year.

“If Nevada wants to be taken seriously as a player, this is the moment,” added David O’Reilly, CEO of Howard Hughes Holdings, which owns the land slated for the project. “Without these incentives, there’s no reason for Sony or Warner to film here when they can get stronger tax deals in 20 other states or countries. We’re simply trying to make Nevada competitive.”

O’Reilly’s argument echoes the playbook that turned Georgia into the so-called “Hollywood of the South.” Its now-famous tax credit program helped attract Avengers, The Hunger Games, and Stranger Things — and spurred the creation of multiple mega-studios around Atlanta.

The Vegas Difference

Supporters believe Vegas has something no other U.S. market can replicate: brand power.

“With movie studios, you bring in a whole different type of tourist,” White said. “You’re not just bringing in gamblers or convention goers. You’re bringing in people who want to visit where the magic happens — just like they do in Atlanta or London.”

According to the Las Vegas Convention and Visitors Authority, tourism dropped 11.3% year-over-year between June 2024 and June 2025 — a troubling trend for a city that thrives on out-of-town spending. Local unions argue that building a studio complex could create a “Hollywood experience” for tourists and stabilize the workforce with construction and production jobs.

A Divided Gamble

Still, not everyone is buying the pitch.

The American Federation of State, County and Municipal Employees (AFSCME) — representing thousands of public-sector workers — has urged Governor Joe Lombardo to reject the proposal, calling it “fiscally irresponsible and politically indefensible.”

In a letter co-signed by other state organizations, AFSCME argued that every dollar diverted to Hollywood is a dollar not spent on schools, healthcare, or wildfire mitigation. “Every dollar we lock into a corporate handout is a dollar we can’t put toward the services Nevadans rely on when times get tight,” the group wrote.

Their opposition is fueled by data from other incentive programs. In Georgia, for example, the state’s own audits show that it recoups roughly 17 cents in tax revenue for every dollar spent on film credits. Critics fear Nevada could face similar shortfalls if projections fail to meet expectations.

Even some state workers sympathetic to the film industry are cautious. “We want the jobs,” said Jared Kluesner, a psychiatric nurse and AFSCME member in Las Vegas. “But not if it comes at the expense of public services that already don’t have enough funding.”

Why the Stakes Are So High

For labor unions and local trades, however, the fight is about survival — not subsidies.

With California production down 60% over the last five years and crew members scrambling to find steady work, new infrastructure in Nevada could help keep jobs in the region and attract productions priced out of Los Angeles.

“It’s not just about building soundstages,” said one veteran Las Vegas grip. “It’s about giving West Coast crews somewhere to go when LA goes dark.”

Indeed, the timing might be ideal. California’s revamped $750 million film and TV tax credit has only recently begun awarding funds, and FilmLA reports that fewer than 10% of active productions in Los Angeles currently benefit from it. Many producers are still looking for financially viable alternatives — preferably close enough to LA to retain crew and talent.