A little-known provision in Nevada's AB5 could create new tax planning opportunities for fitness studios that also operate as production companies.
Most Nevada gym and fitness studio owners have never heard of the film production tax credit buried in AB5—the Nevada Studio Infrastructure Jobs and Workforce Training Act. That's understandable. But if your business has any involvement in producing video content, instructional recordings, or media for marketing or resale, this provision deserves your attention.
Effective July 1, 2029, Nevada doubled its film production tax credit from 15% to 30% and made it transferable. Here's what that means in plain terms: if your fitness studio qualifies as a production company under Nevada law and spends money on qualified in-state production work—equipment, labor, location fees, post-production—you can now claim a tax credit equal to 30% of those expenditures.
The game-changer is transferability. Unlike a standard tax credit that only offsets your own tax bill, these credits can be sold or transferred to another business. That business can then use the credits to pay down modified business tax, insurance premium tax, or gaming license fees. In practical terms, this converts your production spending into immediate cash-equivalent value, even if your studio doesn't owe enough tax to use the full credit itself.
Not every fitness business qualifies. You need to meet Nevada's definition of a production company—typically meaning your primary business activity involves creating film, video, or other qualifying media content. A studio that occasionally shoots workout videos for social media probably doesn't qualify. A studio that produces and sells instructional fitness content, or operates a production arm that generates revenue from media sales or licensing, likely does.
The distinction matters because the credit only applies to "qualified in-state production expenditures"—spending on production work performed in Nevada. Out-of-state or non-production costs don't count.
Applications for the credit can be submitted on or after July 1, 2029 and before July 1, 2044. The program itself expires June 30, 2050. This is a 15-year window, but it's not permanent, so timing matters if you're planning production investments.
If your fitness business has any production component—or if you're considering launching one—it's worth having a conversation with your tax advisor about whether you'd qualify. The doubled credit rate and transferability option change the economics of in-state production spending. Even modest production activity could generate meaningful tax value.
The provision is found in Section 28 of AB5 (NRS 360.7592), on page 50 of the bill. Your accountant or tax professional can review the full statutory language and help you determine whether your specific business structure and spending patterns qualify.
This explainer is based on the text of Nevada AB5 as enacted. For business-specific guidance on whether your studio qualifies or how to structure production activities, consult a Nevada tax professional or CPA.