Maryland offers a 28% refundable tax credit to qualified film productions excluding TV series, pilots, & miniseries, which qualify at 30%. Total compensation (including payments related to labor outside of Maryland) including salary, wages, fringes, per diem, housing/travel/meal allowances, & box rentals that may qualify is limited to $500K.
Maryland also offers a 28% credit to "small films"; to qualify as a Maryland small film, the film production entity must have been organized in Maryland for at least three (3) months prior to the date of application; or, for an individual, unincorporated association, sole proprietorship, or general partnership which is not registered with the Maryland State Department of Assessment and Taxation, has been in active business in Maryland for at least three (3) months prior to the date of application; the film production entity must be independently owned and operated; the film production entity may not be a subsidiary of another entity.
A subsidiary is defined as an entity in which more than 50% of the shares are owned or controlled by, either directly or indirectly, another entity; the film production entity may not be dominant in its field of operation; & the film production entity may not employ more than 25 full-time employees.Eligible project types: Animation, commercials, documentaries, feature films, game shows, music videos, pilots, reality TV, scripted TV, talk shows.
Incentive details
Type
Refundable tax credit.
Rate
28% (all projects except TV series, pilots, & miniseries)
Uplift(s)
2% (TV series, pilots, & miniseries).
Annual Cap
$17.5M (thru June 30, 2025); $20M (FY 2026)
Project Cap
$10M; $125K (MD small films)
Compensation Cap
$500K
Eligible Expenses
Costs directly incurred by the film production entity, provided by a qualified vendor, and employee wages & benefits up-to $500K/employee for time or use in Maryland only and pro-rated for time in Maryland only.
Additional Info
Principal photography must begin within 120 days of receiving the letter of qualification. Productions may apply for a sales & use tax exemption.
Requirements
Minimum Spend
$250K; $25K (MD small films)
Local Hire
Requirement
No
Logo/End Credit Acknowledgement Required
Yes (or alternative marketing opportunities approved by the dept.)
Loanout Withholding
No
Application Timing
Application must be submitted prior to any production activity in the state. A form for additional documentation and information must be submitted prior to the start of principal photography. No later than 180 days after completion of activity in the state, the application for final tax credit certification must be submitted. Prior to the conclusion of principal photography, the department must approve the draft engagement letter for the CPA.
Audit
CPA audit required, report is due within 180 days of completion date of in-state activity. film productions with less than $250K in authorized direct costs are not required to complete a CPAaudit.
How to Apply
Application
Application Timing
Maryland Film Office
CATHERINE BATAVICK, DIRECTOR, 410-767-6340, CATHERINE.BATAVICK@MARYLAND.GOV Maryland Film Welcome
