A little-noticed provision in Nevada's new Studio Infrastructure Jobs and Workforce Training Act could affect how production companies—and their contractors—plan cash flow and project work.
Most Nevada construction and trades owners haven't heard about a tax credit provision buried in AB5 that could reshape how production companies operate in the state—and how they hire and pay contractors.
Nevada passed AB5, the Studio Infrastructure Jobs and Workforce Training Act, to incentivize film, television, and digital media production work in the state. Tucked into Section 28 (page 50) is a provision that significantly increases an existing tax credit for Nevada-based production companies.
Here's the core change: Any production company that qualifies under Nevada's existing noninfrastructure transferable tax credit program will see its base credit rate double from 15% to 30% of qualified direct Nevada production expenditures. That's a substantial increase—one that affects how much cash these companies can recover or sell.
This applies to production companies of all sizes—major studios and small independents alike—as long as they meet the program's eligibility requirements. The credits are transferable, meaning companies can sell them to other Nevada businesses to offset modified business tax, insurance premium tax, and other obligations. That liquidity matters.
For construction and trades firms, this is worth tracking because production companies are customers. When a production company's tax credit doubles, it changes their cash position and their ability to fund projects, hire local labor, and pay subcontractors. A company with stronger cash flow from tax credits may green-light more work or accelerate timelines.
The transferability also creates a secondary market. Production companies might sell credits to other Nevada businesses—including construction firms—looking to offset tax liability. Understanding this credit exists helps you evaluate whether it's a tool for your own business.
The doubled credit rate applies to certificate-of-eligibility applications submitted on or after July 1, 2029 and before July 1, 2044. That's a 15-year window. Any production company planning to apply for the credit after mid-2029 will qualify for the 30% rate, not the old 15% rate.
If you work with production companies or are considering whether to pursue production work yourself, marking July 1, 2029 on your calendar makes sense. That's when the incentive structure shifts.
AB5's production tax credit increase isn't flashy, but it's real. It puts more cash into production companies' hands and creates a longer, more predictable incentive period. For construction and trades owners, that translates to potential customer growth in the production sector and a clearer picture of how Nevada is positioning itself to attract and retain that work.
If your business touches production work—or if you're exploring new revenue streams—understanding how this credit works is worth a conversation with your accountant or tax advisor.
Source: Nevada AB5, Section 28, page 50. The Nevada Studio Infrastructure Jobs and Workforce Training Act (BDR S-13).