Trade Unions Form PAC to revive film tax credits for Hollywood Studio Expansion in Las Vegas

Following Governor Joe Lombardo’s (R-NV) announcement of an upcoming special session of the Nevada legislature to “finish what the Legislature left unfinished,” more than 20 labor unions have formed a political action committee (PAC) to support failed legislation that would have provided tax credits to Hollywood studios.

“At some point over the next few months, I intend to call the Legislature back for a special session. The goal will be to finish what the Legislature left unfinished – plain and simple,” Lombardo said in a statement released last week.

Although the agenda of the special session has yet to be released, the creation of the “Nevada Jobs Now” PAC by several trade unions signals that Assembly Bill 238 and/or Senate Bill 220 may be on the special session’s docket. Both pieces of legislation were sponsored by Las Vegas Democrats.

AB 238 would have provided $95 million in tax credits over 15 years to studios and independent film makers who filmed at least 50 percent of shoots in Nevada with production completed within 18 months. The legislation narrowly passed the Assembly and died in the Senate.

SB 220 also provided tax credits, the establishment of an account for Nevada Film, Media and Related Technology Education and Vocational Training, and a board to approve distributions.

“The Las Vegas Metropolitan Area is the largest metropolitan area in this State and has a need to improve the  education and training of the workforce in the Las Vegas Metropolitan Area and to diversify the economy of the Area, as indicated by the impact of the COVID-19 pandemic on the Area. The Harry Reid Research and Technology Park has been identified as a location in the Las Vegas Metropolitan Area for a project that can address the needs of the Las Vegas Metropolitan Area,” the legislation reads.

Last February Warner Bros., Sony Pictures Entertainment and Howard Hughes Holdings collectively proposed developing “Summerlin Studios,” a 31-acre film production studio in Las Vegas.

“This special session gives Nevada a second chance to create over 19,000 construction jobs today and more than 17,000 permanent jobs tomorrow,” said Tommy White, Business Manager and Secretary-Treasurer, Laborers International Union of North America Local 872. “Our unions are united because Summerlin Studios isn’t only a construction project—it’s an economic engine that will deliver over $3 billion in annual impact and sustain thousands of working families for decades.”

“The results of this past summer locally in Southern Nevada have run strong, as I think a lot of us have hoped. And I think there are some storm clouds that remain out on the horizon and I think the immediate impact that the federal government had as it relates to tariffs and the change in international tourism has been real,” Howard Hughes Corporation CEO David O’Reilly told 8 News Now. “I think that as we look at potential softening in the economy, especially around consumer spending, having another leg to the stool of the economic engine of the State of Nevada is more critical than ever.”

“A study done by the Nevada Governor’s Office of Economic Development in May downgraded the estimated impact of a movie studio bill in the Nevada Legislature… The study on AB 238 downgraded the return on investment slightly from the studio’s estimate, finding that Nevada would only get back 52 cents of every dollar in tax credits. The return on investment calculation includes a net film tax credit of $1.425 billion over 15 years,” Channel 8 News Now reports.

“Since the end of Session, my colleagues and I have heard from hundreds of constituents who’ve expressed their continued excitement for the economic opportunities this project will create and that our community desperately needs. I hope we have the opportunity to bring this bill back in the upcoming Special Session of the Nevada Legislature and ultimately deliver a brand-new industry and tens of thousands of jobs to our state,” Sandra Jauregui, Nevada Assembly Majority Leader and bill sponsor said.

The unions behind the Nevada Jobs Now PAC include:

• Boilermakers Local 92
• Bricklayers Local 13
• Las Vegas Carpenters Local 1977
• Laborers Local 872
• IBEW Local 357
• Insulators Local 135
• Ironworkers Local 155
• Ironworkers Local 416
• Ironworkers Local 433
• IUEC Local 18
• IUOE Local 12
• IUPAT DC 16
• OPCMIA Local 797
• Roofers Local 162
• Smart Local 88
• Southern Nevada Building Trades
• Southern Nevada Teamsters
• Sprinkler Fitters Local 669
• UA Local 525
• United Brotherhood of Carpenters and Joiners of America
• Western States Regional Council of Carpenters