LAS VEGAS, Nev. (FOX5) - The bill to back film tax credits for Summerlin Studios passed the Assembly, late Friday night, as Nevada lawmakers move quickly to decide the fate of two movie studio proposals across the Las Vegas Valley.
Late Friday night, Assembly lawmakers passed A.B. 238 by a slim margin of 22 to 20. It heads to the Senate and a Senate Committee.
The Nevada Legislature's 2025 session ends Monday, June 2.
The Summerlin Studios project backs the joint venture between Warner. Bros. and Sony Pictures.
The bill proposes a $120 million tax credit package over 15 years for productions, and mandates that half of the 15,000 annual workers would be Nevadans.
Thursday, the Culinary Union joined 16 unions to announce support for A.B.238 and Summerlin Studios.
The second proposal for film tax credits, Senate Bill 220, still lags in the Senate. The bill is backed by Birtcher Nevada Development and the MBS Group, and proposes a major film studio campus at the Harry Reid Research & Technology Park.
The Senate bill provides around $100 million in tax credits for 15 years, with a three-year "ramp-up. "According to bill proponents, the project would generate around 9,000 jobs a year, and through the lifespan of the project, generate $80.5 billion in economic impact.
This week, State Sen. Roberta Lange proposed merging both bills for a new tax credit package: $60 million for Nevada Studios, $60 million for Summerlin Studios, and $25 million for other projects.
"It's essential the Legislature pass a unified film bill this session. We have no time to lose and so much to gain in terms of permanent jobs, unprecedented workforce development and education investment," Lange said in a statement to FOX5.
The Southern Nevada Building Trades Unions supports both bills, urging lawmakers to help create tens of thousands of jobs.
Tuesday, the Governor's Office of Economic Development released two independent commissioned reports to analyze the fiscal impact of Summerlin Studios and Nevada Studios.
A key debate centers around Return on Investment or ROI: for every $1 in tax credits given by Nevada, how much will the state get back in direct or indirect revenue?
The GOED-commissioned report for Summerlin Studios indicates an ROI of $0.52 per $1, according to firm Applied Economics.
The separate report for Nevada Studios indicates an ROI of $0.35 per $1, far less than the bill proponent's initial report.
Lawmakers are closely weighing the impact on the budget: the state's Economic Forum recently projected a $191 million shortfall over two budget cycles. Lawmakers also told FOX5 that the State Education Fund will also see a decrease of around $153 million.