Maryland

PRIOR to beginning any production activity in the state, submit an Application for Qualification to the Department of Commerce; PRIOR to the start of principal photography in the state, submit a Form for Additional Documentation & Information; schedule principal photography to begin within 120 days of receiving the Letter of Qualification; film at least 50% of principal photography in Maryland; before the conclusion of principal photography in the state, have the Department approve the draft agreement of the engagement letter for the independent third-party CPA; and submit the third-party auditor’s report within 180 days of the completion date of activity in the state.

Qualified spend includes wages and benefits of each resident and nonresident employee whose total compensation is $500,000 or less; fees for services provided in Maryland; costs of acquiring or leasing property; travel expenses to bring persons into the state but not the expenses of persons departing from Maryland; and any other expenses necessary to carry out film production activity.

This program is administered on a first-come, first-served basis. Maryland offers a refundable tax credit equal to 28% of the total direct costs associated with all qualified film production activity with the exception of a television series (including a mini-series or a pilot produced for an intended television series), which will earn 30% of total direct costs. Total direct costs do not include any portion of the salary, wages, or other compensation of an individual that receives more than $500,000 for personal services. The $500,000 compensation threshold encompasses all phases of production even if the services are not performed in Maryland. Total compensation includes employer fringes and payments made directly to the employee (i.e. per diem, housing allowance, cell phone allowance, relocation fees, kit/box rental, etc.). For feature films and television series, the end credits must include a five-second-long static or animated logo before the below-the-line crew crawl. In lieu of the logo, the production company may offer alternative marketing opportunities of equal or greater promotional value to the state for evaluation. 10% of the annual funding is reserved for Maryland Small film projects. The maximum incentive a project may earn is capped at $10 million, $125k for a Maryland small film project. An exemption from the 6% state sales & use tax is available to qualified feature, television, cable, commercial, documentary, music video, etc., projects. Maryland also offers an incentive for Theatrical Stage productions (House Bill 641).