The Nevada Legislature’s recently concluded weeklong special session in Carson City ended with the failure of a high-profile proposal to offer millions of dollars in tax credits to attract film studios to the state. At the same time, Governor Joe Lombardo, a Republican and former Clark County sheriff, secured legislative passage of his sweeping crime bill, though with amendments that could complicate his plans to sign it into law. The session illustrated the competing priorities and political challenges facing the state’s leaders as they navigate economic development, public safety, and social issues less than two years before the 2026 gubernatorial election.
The centerpiece of the special session was a controversial union-backed effort to provide $95 million annually in transferable tax credits to major film studios—Sony Pictures Entertainment and Warner Bros. Discovery—to build a sprawling new production facility in the Las Vegas suburbs. Known as the Summerlin Studios Project, the plan envisioned a large-scale production complex with 10 movie stages, hotels, and a medical center. Proponents argued it would serve as a vital economic stimulus, creating 19,000 construction jobs and 18,000 permanent jobs, a much-needed boost for Southern Nevada’s economy, which has been struggling due to a recent downturn in tourism.
Supporters of the film tax credit framed the proposal as a “jobs bill” that would revitalize Southern Nevada’s workforce. Construction workers and union organizers testified before lawmakers, emphasizing how the region has seen a dry spell of major construction projects since the completion of entertainment landmarks like the Fontainebleau resort and the Sphere arena. Alfonso Lopez, an organizer with Sheet Metal Workers Local 88, compared the potential job creation to the historic Hoover Dam project, which employed around 21,000 people during its construction. Many argued that the film studio project could provide similar economic benefits and help diversify Nevada’s economy beyond gaming and hospitality.
Despite the passionate support and more than a million dollars in lobbying efforts, the film tax credit failed narrowly in the state Senate by one vote. The bill had previously failed during the Legislature’s regular session in June but was revived for the special session following sustained pressure from trade unions and industry advocates. However, three Republican senators were absent during the final vote, contributing to its defeat. The bill had managed to pass the Assembly after lawmakers negotiated additional funding provisions, including money allocated for medical expenses for retired state employees and expanded pre-kindergarten programs in the Las Vegas area, in an effort to win over skeptical legislators.
Opponents of the tax credit raised concerns about the state’s fiscal health and questioned whether the potential economic benefits justified the cost. Legislative fiscal analysts projected that the tax credits could contribute to a budget deficit of up to $260 million by 2030, raising fears about future tax increases or cuts to already limited state services. Assemblymember Selena La Rue Hatch, a Democrat and teacher from Reno who actively opposed the measure, argued that if the state’s priorities were truly education and public employees, they would receive more substantial funding rather than “crumbs” attached to a film tax credit bill. Alexander Marks, deputy executive director of field and communications for the Nevada State Education Association, echoed these sentiments, suggesting that the state’s funding priorities were misplaced if Hollywood was treated as an emergency over schools.
The failure of the film tax credit was a clear setback for Governor Lombardo, who had publicly supported the measure and was expected to sign it into law. It also represented a disappointment for the unions and industry groups that invested heavily in lobbying to bring the project to fruition. Lombardo framed the special session as an opportunity to deliver tangible results on key issues affecting Nevadans’ daily lives, emphasizing the need for prompt action rather than waiting years for change. With the 2026 election approaching, the governor faces pressure to demonstrate leadership on economic development and public safety to strengthen his reelection prospects.
While the film tax credit proposal faltered, the Legislature did pass a major piece of Governor Lombardo’s agenda: the “Safe Streets and Neighborhoods Act,” a comprehensive crime bill that aims to increase penalties for a broad range of offenses. The legislation targets crimes such as smash-and-grab robberies, assault and battery against hospitality workers, and DUI cases involving fatalities. Additionally, it seeks to reinstate a specialized court program known as the Resort Corridor Court, which had ended in 2024. This program was designed to handle minor criminal offenses occurring on the Las Vegas Strip and included provisions to ban repeat offenders from the corridor for up to a year.
Supporters