Maryland Film Tax Incentives
28% for qualifying feature films, 30% for television series, and a refundable credit. Learn the real spending tests, funding limits, and route to cash.
Research reviewed: October 21, 2026 · Maryland Department of Commerce and Maryland Film Office
A refundable credit for films and television
Maryland supports eligible productions through its Film Production Activity Tax Credit, administered by the Maryland Department of Commerce and Film Office. It reimburses a share of authorized direct costs through the state tax process after final certification.
Standard Film Productions
For qualifying features and television series with more than $250,000 in authorized Maryland direct costs. The published program rates are 28% for features and 30% for television series. The Film Office currently publishes a $10 million project ceiling; verify any project-specific statutory revisions in your Letter of Qualification.
Maryland Small Films
A separate track for qualifying small, Maryland-based producers with more than $25,000 in Maryland direct costs. The published maximum award is $125,000 per project, with additional entity age, ownership and headcount tests. Ask the office to confirm the applicable rate for a particular small-film format.
Know the rate, then test the spend
The advertised percentage applies only to approved authorized direct costs, not the entire production budget.
| Track | Published rate | Spend threshold | Published per-project ceiling |
|---|---|---|---|
| Standard feature | 28% | More than $250,000 Maryland direct costs | $10 million, subject to statutory and award confirmation |
| Standard television series | 30% | More than $250,000 Maryland direct costs | $10 million, subject to statutory and award confirmation |
| Maryland Small Film | Published 28% baseline; confirm series treatment | More than $25,000 Maryland direct costs | $125,000 |
Qualified Maryland vendors
Direct costs generally must be incurred by the production entity for goods or services from vendors that meet Maryland's qualifications. In-state use and work must be documented and prorated. Specialized nonqualified vendors require advance exception approval.
The $500K individual compensation rule
If an individual receives more than $500,000 total compensation across the production activity, none of that person's related wages or other compensation qualify. The test includes qualifying fringe and allowance amounts, payroll companies and loan-outs.
Other exclusions may include out-of-state filming expenses, gifts, penalties, costs paid by insurance and nonqualifying personal items. Confirm line items against the current Authorized Direct Costs guidance.
Three tests that can change your plan
At least half the photography
At least 50% of principal photography must take place in Maryland. A Washington, D.C. shoot does not count as Maryland photography.
Financing and distribution evidence
Standard applicants must demonstrate financing and acceptable evidence of national distribution. Producers should ask what documents the Film Office will accept before relying on a credit in an investor package.
120-day start window
Principal photography must be scheduled to begin within 120 days of the Letter of Qualification. The Department may permit certain extensions.
Maryland Small Film entity test
The entity generally must have operated in Maryland for at least three months, be independently owned, not be a subsidiary or dominant business, and have no more than 25 full-time employees.
Apply before Maryland work begins
The timing requirements are material. Build them into the schedule before locking locations, labor, vendor deposits or principal photography.
- Contact the Maryland Film Office. Ask about FY2027 unreserved credits, production eligibility, distribution proof and expected award amount.
- Submit a complete Application for Qualification. Do this before any work on the Maryland production activity. Include financing, distribution, schedules and cost estimates.
- Receive the Letter of Qualification. The Department says it responds within 30 days of a complete application; the letter specifies a maximum reserved credit. A reservation is not final cash.
- Submit additional documentation before principal photography. Standard productions must complete the additional form. Maryland Small Films are exempt from that particular form.
- Start photography within 120 days. Follow the approved schedule and secure written extensions when justified.
- Prepare the accountant's review. When authorized direct costs exceed $250,000, arrange an independent third-party CPA Agreed Upon Procedures report. The draft engagement letter must receive Department approval before principal photography concludes.
- Submit final certification within 180 days after Maryland completion. Include final cost evidence, reports, payment records and any required loan-out schedules. Extensions are discretionary.
- Claim the credit with the tax return. After receiving the Final Tax Credit Certificate, use the required Maryland electronic filing process and Form 500CR.
Monetization & access to cash
Maryland's credit is refundable. That means the entity may claim a refund when its certified credit exceeds Maryland income tax due. This differs from selling transferable tax credits to outside buyers.
Certification → tax filing → refund
After production, the state reviews qualified costs and issues a Final Tax Credit Certificate up to the amount reserved. The entity files its Maryland return electronically, completes Form 500CR and includes the certificate. Any applicable refund is processed through the tax system, not paid at the start of principal photography.
Optional private bridge financing
A lender may consider lending against an expected qualified refund, but the state does not guarantee financing. Underwriting may depend on the letter, entity structure, eligible costs, independent CPA review, potential rescission and the timing of collection.
Also model the risk that disallowed spending, missing documentation, vendor ineligibility, payroll caps or changed production plans reduce the final award.
Active program. Limited allocation.
Fiscal year 2027
The Maryland Department of Commerce states that it is accepting applications for FY2027 (July 1, 2026–June 30, 2027) and is limited to $12 million in credit certifications during that fiscal year. Complete applications are processed first-come, first-served.
What is still available?
Unreserved FY2027 balance not independently verified as of October 21, 2026. The annual limit should not be interpreted as money available to a new applicant. Obtain current confirmation from the Maryland Film Office and an actual Letter of Qualification.
Separately, do not confuse the film-production tax credit with Maryland's theatrical-production tax credit for certain live touring and pre-Broadway stage productions.
Official resources
Use these official Maryland resources to check forms, legal authority and the Film Office's current funding position.
Frequently asked questions
Is Maryland's credit transferable or refundable?
Refundable. Once certified and claimed on the qualifying Maryland income-tax return, the excess credit may be refunded. This is not generally a third-party credit sale marketplace.
Is the feature-film credit really 28%?
The state publishes 28% for qualifying standard feature-film authorized direct costs. Only approved Maryland costs count, and final credit depends on certification, award cap and compliance.
Do documentary films qualify?
Eligibility depends on the statutory definition, production plan and documentation. Ask the Film Office to confirm the documentary's specific eligibility, distribution evidence and track before incurring Maryland costs.
Can a $3 million independent feature qualify?
Potentially, if it satisfies Maryland direct-cost, photography, financing, national-distribution, vendor, paperwork and timing tests and the state reserves sufficient allocation. A production's worldwide budget alone does not establish eligibility.
How much of the film needs to shoot in Maryland?
At least 50% of principal photography under the current published standard eligibility guidance.
Can the project apply after filming?
No. Apply before any work begins on the Maryland production activity. Pre-application costs are not eligible.
What does the $12 million FY2027 cap mean?
It is the total the Department may certify in that fiscal year, not the balance still available to new productions. Get a current update directly from the state.
Do I need a CPA report?
Yes when authorized direct costs exceed $250,000. Smaller qualifying Maryland Small Film projects may use the separate receipts-and-payment documentation process.
Can I also use the sales-tax exemption?
The sales-and-use-tax exemption is a separate program that may apply alongside the income-tax credit if the project meets each program's rules and receives the needed exemption certification.
Research disclaimer. This guide is general production-incentive research, not tax, legal, financial or investment advice. Program terms, appropriations, interpretations and forms can change. Confirm all rules and availability with the Maryland Department of Commerce, your production counsel and a Maryland-qualified tax professional before commitments.
Compare Maryland with other states
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