THE INCENTIVES PROGRAM - TIP

House Bill 432 proposes to amend the aggregate amount of film production tax credit certificates that the Secretary of Commerce may issue each fiscal year (July 1 – June 30), as follows:

• $25 million for fiscal year 2023; and,
• $50 million for fiscal year 2024 and each fiscal year thereafter.

Senate Bill 536 proposes to amend the Maryland Film Production Activity Tax Credit program by expanding eligibility to include digital animation projects.

If enacted, this Act shall take effect July 1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021.

Senate Bill 664 proposes to amend the Maryland Film Production Activity Tax Credit for the 2023 fiscal year (July 1- June 30) and each year thereafter, as follows:

• • Requires 20 percent of the credit amount authorized for each fiscal year be made available for film production activities in select counties. This is in addition to the 10 percent set aside for small or independent film entities.

If enacted, this act shall take effect July 1, 2022.

Senate Bill 1091 proposes to reenact the tax credit program for qualified motion media projects. The program is referred to as the “Show MO Act”. Details of the program are as follows:

• Creates a transferable base tax credit equal to 20 percent of qualifying expenses;
  • Allows for the total dollar amount of the base credit to be increased by 10 percent for projects located in a county of the second, third, or fourth class;
• Allows for the opportunity to earn the following additional credits:
  • 5 percent of qualified expenditures if at least 50 percent is filmed in Missouri;
  • 5 percent of qualified expenditures if at least 15 percent of project is filmed in rural or blighted area in Missouri;
  • 5 percent of qualified expenditures if at least three departments hire Missouri residents in specialized craft or learn new skillset;
  • 5 percent of qualified expenditures if script markets Missouri or tourist attraction;
• Establishes an annual incentive funding cap of $8 million;
• Qualifies resident and nonresident labor;
• Limits compensation and wages paid to all above-the-line individuals to 25 percent of overall qualifying expenses;
• Requirements:
  • Employ the following number of Missouri registered apprentices or veterans residing in Missouri with transferable skills when qualifying expenses are:
    • less than $5 million, two;
    • at least $5 million but less than $10 million, three;
    • at least $10 million but less than $15 million, six; or,
    • at least $15 million, eight;
  • Submit final application along with an economic impact statement accompanied by verification of expenses by a certified public accountant located and licensed in Missouri;
  • Meet the minimum qualifying spend requirements of $50,000 for a project under thirty minutes or $100,000 for a project greater than 30 minutes; and,
• Establishes a sunset date of December 31, 2030.

House Bill 4558 proposes to create the Esports Event Production Tax Credit program as follows:

• Creates a refundable tax credit equal to 25 percent of the production company’s qualifying expenditures;
• Qualifies up to the 1^st million of wages paid to each resident and nonresident;
• Establishes a per project incentive cap of $20 million for a feature film;
• Requires at least $250k of qualifying expenses; and,
• Establishes a sunset date of December 31, 2024.