Evaluation of the Maryland Film Production Activity Tax Credit

Source: Robert Rehrmann, Matthew Bennett, Benjamin Blank, George Butler, Jr., Mya Dempsey, Mindy McConville, Maureen Merzlak, Heather Ruby, Department of Legislative Services, Office of Policy Analysis, October 2014

….This report provides an overview of the film production activity tax credit, including how the credit is claimed, the amount of credits claimed, the economic impacts of the credit, and film production incentives in other states. DLS also makes several recommendations related to the tax credit…..
– The Film Production Activity Tax Credit Does Not Provide Sustainable Economic Development
– The Film Production Activity Tax Credit is not Linked to a Production’s Taxable Income or Tax Liability
– Film Production Activity has Benefited Some Local Jurisdictions More than Others
– DBED Should Provide Additional Information a bout the Film Production Activity Tax Credit and Similar Incentives in Other States
– The Vast Majority of Film Production Activity Tax Credits Have Been Awarded to Two Productions
– Film Production Companies Pit States against One Another for Incentives