Maryland's credit is refundable and the rates are simple. The complications are the small annual pool and a strict rule on high earners. With $12 million to certify in fiscal year 2027 on a first-come basis, the timing of your application matters as much as the rate.
Rates and limits
| Item | Rule under Tax-General §10-730 |
|---|---|
| Feature films and most productions | 28% of qualified direct costs |
| Television series | 30% |
| Maryland Small Films | 28% (30% for a series), up to $125,000 |
| Minimum Maryland direct costs | More than $250,000 ($25,000 for Small Films) |
| Principal photography in Maryland | At least 50% |
| Annual certification limit | $12,000,000 for fiscal 2026 and later |
| Single production limit | $10,000,000 in credits |
| Small Films set-aside | 10% of the annual amount |
The annual amount has moved around: the statute lists $15 million for fiscal 2024 and $17.5 million for fiscal 2025 before dropping to $12 million from fiscal 2026. Unused authority carries forward.
What counts, and what quietly disqualifies
Direct costs have to come from a qualified vendor: registered in Maryland, with a physical location where its employees work, selling goods or services it normally sells from that location. Specialized gear that isn't available locally can come from a non-qualified vendor only with Commerce's prior approval through a due diligence form.
Everything is prorated to time in Maryland. A lump-sum camera package rental covering Baltimore and a week in Washington, DC has to be split, and the DC days don't count. Materials over $1,000 count at cost minus resale value at wrap. Travel counts only on legs ending in Maryland, so a round-trip fare is halved. You can claim a relocation fee or a housing allowance for a person, not both.
The rule that surprises producers is the $500,000 threshold. If anyone receives more than $500,000 in total compensation on the production (salary, fringes, per diem, housing, car allowance, kit rental, through payroll or a loan-out, across prep through post), none of that person's compensation qualifies, including the first $500,000.
A $1,000,000 feature in Baltimore
A $1,000,000 feature shoots entirely in Baltimore and Annapolis. The accountant removes out-of-state post, insurance allocated to non-Maryland time, and one DC location day, leaving $850,000 of qualified Maryland direct costs.
- 28% x $850,000 = $238,000
Commerce certifies $238,000 in the Letter of Qualification based on the estimate. If final audited costs come in lower, the credit drops. If they come in higher, you still get no more than the letter says.
A $5,000,000 series season
A $5,000,000 streaming series spends $4,200,000 in Maryland, but the showrunner's package is $650,000.
- The showrunner's $650,000 is removed entirely (over the $500,000 line), leaving $3,550,000
- 30% x $3,550,000 = $1,065,000
That's about 9% of the state's $12 million annual authority on one project, which is why first-come timing matters.
From application to refund
- Before any work in Maryland, submit the Application for Qualification with all attachments (by email or to the Maryland Film Office at 401 East Pratt Street, Baltimore). Incomplete applications aren't considered.
- Within 30 days, Commerce issues a Letter of Qualification with the maximum credit, or a denial.
- Before principal photography, submit the Form for Additional Documentation and Information (not required for Small Films).
- Start principal photography within 120 days of the letter.
- Before principal photography wraps, get Commerce's approval of the draft engagement letter for your independent CPA's agreed-upon procedures (required above $250,000).
- Within 180 days after completing Maryland production, file for final certification with the CPA report and proof that no Maryland vendor is owed money.
- File the Maryland return electronically with Form 500CR and the certificate. Any excess over tax owed is refunded.
Features need a 5-second Maryland logo in the end credits before the below-the-line crawl; series need it embedded in each broadcast. Productions also work with the film office on a cast and crew screening in Maryland before general release.
Neighbors
Virginia, Pennsylvania, Delaware, West Virginia, and the District of Columbia all border Maryland, and each has its own page. Remember that days shot in DC won't count toward Maryland's credit even on a Maryland-based show. Test splits in the incentive calculator, check qualified spend rules, and read how film tax credits work. All states are on the incentives hub, and Storiara's budgeting feature is one place to build the Maryland-only cost estimate the application asks for.