With just days left in Nevada’s legislative session, a dramatically expanded film tax credit proposal — Assembly Bill 238 — is advancing through the statehouse with backing from major industry players and a growing list of stipulations designed to satisfy public accountability and economic return.

The revised version of AB238, approved by the Assembly Committee on Ways and Means, proposes an 850% increase in Nevada’s current film tax credit program. Beginning in 2028, it would appropriate $95 million annually in transferable tax credits for a 15-year term — a move that could reposition Nevada as a serious contender in the competitive landscape of U.S. film production hubs.

But the bill is about more than just credits. With Saturday’s amendments, lawmakers introduced a major new component: a proposed Production Studio Entertainment District that would earmark an estimated $11 million in annual tax revenues for pre-K education in Clark County. Over the next 17 years, those funds would help fill a critical early-education gap, giving access to thousands of four- and five-year-olds currently without seats.

“We’re not just building studios,” said Assemblymember Sandra Jauregui, the bill’s sponsor. “We’re building long-term infrastructure for both economic and educational growth in Nevada.”

Big Studios, Big Stakes

The legislation — which now carries the backing of Sony Pictures Entertainment and Warner Bros. Discovery — sets a high bar for eligibility. Developers must commit to investing at least $400 million by 2028, $900 million by 2029, and a total of $1.8 billion by 2038. Production companies, meanwhile, must guarantee $4.5 billion in local spending across 15 years.

Miss a milestone? You could face liens against your land, or be required to repay the state as much as $50 million — depending on the shortfall.

“This isn’t a blank check,” Jauregui added. “It’s a performance-based agreement with teeth.”

The new language includes a “Performance and Accountability Report,” to be submitted every other year to the Governor, Legislature, and the Governor’s Office of Economic Development. That report must include updates on capital investment, infrastructure improvements, and the number of Nevadans employed.

Education in Focus

One of the proposal’s most novel features is its dedication to pre-K funding through the tax revenue generated by the new entertainment district. Clark County currently has more than 27,000 pre-K eligible children, but fewer than 7,000 are enrolled.

“This bill provides a dedicated revenue stream to build and sustain pre-K in a way that standalone appropriations cannot,” said John Vellardita, executive director of the Clark County Education Association. “It allows the school district to plan long-term.”

Still, not all education groups are on board. The Nevada State Education Association (NSEA) remains opposed, calling the proposal “fiscal recklessness” in the face of broader public needs like housing and K-12 investment.

Political Tightrope

The bill passed with five dissenting votes — including Democrats and Republicans — and two lawmakers who supported it but reserved the right to change their vote before it hits the Assembly floor.

Governor Joe Lombardo, a Republican, has not taken a public position, stating earlier this year that he would evaluate the measure’s long-term economic impact.

Looking Ahead

With the film industry still reeling from last year’s dual strikes and many productions looking to diversify outside of traditional hubs like Georgia, New York, and California, Nevada’s proposed incentive package could represent a generational shift in its production landscape.

Whether or not the bill passes before the session closes, one thing is certain: Nevada is no longer content to be a flyover state for Hollywood dollars. And as the debate continues, StageRunner will keep tracking the developments that matter to producers, stage owners, and the global production community.