Maryland film tax incentive

What Maryland actually pays

A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

New to the mechanics? Tax credit vs rebate vs grant and What counts as qualified spend.

What qualifies

Total authorized direct costs incurred in MD must exceed $250,000. At least 50% of principal photography must occur in Maryland. Must demonstrate financing and provide acceptable evidence of national distribution. Principal photography must begin within 120 days of the Letter of Qualification. Direct costs must be from qualified MD vendors, pro-rated for time in Maryland only (DC filming does not qualify).

• Feature Film
• Scripted TV
• Pilot
• Miniseries
• Documentary
• Animation
• Commercial
• Music Video
• Reality / Unscripted

Other state programs

Separate incentives Maryland runs alongside the headline program. Each has its own base, rules and application — the rates here are the programs' own, not additions to the rate above.

• Maryland Small or Independent Film Tax Credit

  Narrow-eligibility, mutually exclusive with MD00: 28% of all MD total direct costs (statute §10-730(h)(2) fixes 28% for ALL small-entity projects incl. TV), credit capped at $125,000 per project. Never add to MD00.

  Minimum spend: $25,000 (in-state authorized direct costs)

  28%–30%

• Film Production Activity Sales and Use Tax Exemption

  Minimum spend: N/A

  6%

• Long-Term Occupancy Carve-Out from Accommodations Sales Tax (state); Montgomery County 30-Day Room Rental Tax Exemption (local)

  Minimum spend: N/A

  6%

How to apply

Submit Application for Qualification to the Maryland Film Office (Dept. of Commerce) BEFORE beginning any work in-state, with all required attachments. Applications reviewed first-come, first-served; Letter of Qualification issued within 30 days. Submit Application for Final Tax Credit Certification no later than 180 days after completion, including third-party CPA Agreed Upon Procedures report (if direct costs >$250K). Claim via Form 500CR on an electronically-filed Maryland income tax return. Contact: Catherine Batavick, 443-865-9000.

Common questions

What is the Maryland film tax incentive rate?

Maryland offers 28% to 30% on qualified in-state spend through the Film Production Activity Tax Credit. It is a refundable credit. A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

What is the minimum spend for the Maryland film incentive?

$250,000 (in-state authorized direct costs). Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

Is the Maryland film incentive transferable or refundable?

Refundable — the excess over your state tax liability is paid out in cash.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.