A buried provision in Nevada's new Studio Infrastructure Jobs and Workforce Training Act could create unexpected business opportunities for trades and construction companies working with production co
Most construction and trades owners in Nevada don't realize that a provision buried in AB5—the Studio Infrastructure Jobs and Workforce Training Act—could affect how they bid work, structure contracts, or even sell tax credits. Here's what you need to know.
Effective July 1, 2029, Nevada doubles its film and television production tax credit from 15% to 30% for qualified in-state production expenditures. More importantly, this credit becomes transferable—meaning production companies can sell or assign the credit to offset taxes owed by other businesses.
This matters to construction and trades because production companies are major clients for specialized work: equipment installation, temporary infrastructure, site preparation, electrical systems, and more. When a production company receives a larger, more valuable tax credit, it changes their cash flow and their ability to pay for services.
The credit applies to applications submitted on or after July 1, 2029 and before July 1, 2044. (See Section 28, amending NRS 360.7592, page 50 of AB5.)
Any Nevada-based production company—including small independent producers—can apply for this credit if they have qualified in-state production expenditures. The credit is transferable, meaning production companies can sell it to other businesses that owe modified business tax, insurance premium tax, or other state taxes.
For construction and trades, this creates a secondary market. A production company might use its tax credit to pay a contractor, or it might sell the credit and use the proceeds to pay invoices faster. Either way, understanding the credit's value helps you negotiate payment terms and pricing.
If you work regularly with production companies, the doubled credit (30% instead of 15%) and its transferability could mean:
Faster payment: Production companies with valuable, transferable credits may have improved cash flow and pay invoices more reliably.
New negotiating points: Some contractors might accept tax credits as partial payment—if they can use them or sell them. Understanding the credit's mechanics helps you evaluate whether that's worthwhile.
Increased production activity: A more generous tax credit may attract more film and television work to Nevada, creating more opportunities for specialized construction and trades services.
Contract structure: You may want to clarify in contracts whether payment will be cash, credit, or a combination—especially for larger projects.
Applications for the 30% transferable credit can be submitted on or after July 1, 2029 and before July 1, 2044. This is a 15-year window, so the opportunity is substantial but not permanent.
The provision is found in Section 28 of AB5, amending NRS 360.7592.
If you work in construction, electrical, HVAC, equipment rental, or other trades that serve production companies, understanding this credit helps you anticipate client behavior and structure deals accordingly. A free, business-specific guide to Nevada production tax credits and how they affect contractor payments is available through Nevada business resources.