The Nevada Senate has rejected a $120 million annual film and television subsidy that would have supported construction of a new soundstage facility in Las Vegas. The bill, AB 5, fell one vote short of a majority during a special session on Wednesday night, with 10 members in favour, eight opposed and three absent.
The proposed subsidy would have offered up to $95 million a year for projects filming at the Summerlin Studios facility, with an additional $25 million for productions elsewhere in the state. The subsidies were set to run for 15 years, from 2029 to 2044. The measure had narrowly cleared the state Assembly on Sunday by a vote of 22-20.
The project was a joint venture between Howard Hughes Holdings, Sony Pictures and Warner Bros., which had originally backed rival proposals before joining forces in February to support the Summerlin plan. Nevada construction unions made a concerted push to get the measure onto the special session agenda, according to Howard Hughes CEO David O'Reilly.
The bill faced opposition from both ends of the political spectrum. Americans for Prosperity Nevada labelled it a 'corporate giveaway' that would generate just 23 cents for every dollar invested, while some liberal groups warned it would divert funding from healthcare and climate initiatives. Vince Saavedra of the Southern Nevada Building Trades championed the measure as a jobs generator but said lawmakers faced 'bullies' on both sides.
