Important Legislative Notice – Please Read and Take Action!

ATTENTION ALL DC-BALTIMORE MEMBERS
Important Legislative Notice – Please Read and Take Action!

As a result of a lot of very hard work on the part of Maryland business leaders, film professionals, and our professional lobbyists, Senate Bill 596 and House Bill 908 were introduced into the Maryland General Assembly with an impressive roster of Co-Sponsors.  If passed, this legislation would provide real and meaningful production tax incentives that would bring film and TV projects rushing back into Maryland. (Please take a moment to read a description of the Maryland Film Production Act below).

The hearing on the Bill on the Senate side will be held on Wednesday, March 11, tentatively at 1:00 p.m. (confirmation of the time will be posted on our web site). The hearing will be held before the Senate Budget & Taxation Committee in the Miller Senate Building in Annapolis. It is very important for members to come out to show their support for this important legislation that will create film and TV jobs in Maryland.

The hearing for the House Ways and Means Committee has not yet been set. Stayed tuned for more information on that!

We also need Maryland residents to write to their legislators (preferably by sending letters via US Mail, urging them to support SB596 and the companion HB908. It is very important that you actually take the time to do this! If you need help identifying your legislators, you need address information, or a template to work from, please email jlove@aftra.com and we will assist you. Please make sure that if you are writing to a Co-Sponsor that you include a “thank you” to them for their support. (The Co-Sponsors and Bill synopsis for each are listed below).

Additionally, if you have not already visited www.mdfilm.org, please do and sign up to receive notifications from the coalition behind this effort that is gaining momentum in Annapolis!

Finally, we are asking members to please consider a small donation to the Maryland Film Industry Coalition, Inc. in order to help MFIC meet its financial obligations. A donation of just $20.00 gives you a “credit” on the MFIC web site as a supporter of this cause that is so important to enabling professional actors to make their livings in this market. 

Come to the hearing on March 11; write to your Maryland state legislators, visit www.mdfilm.org, and make a contribution if you can either by PayPal or by check (go to www.mdfilm.org and click on “contribute now” for details).

SENATE BILL 596

Sponsored By:
Senators Kasemeyer, Brinkley, Currie, DeGrange, Della, Edwards, Garagiola, Jones, King, Kittleman, Klausmeier, Kramer, Madaleno, McFadden, Middleton, Munson, Peters, Pugh, Robey and Stone

Entitled:
Income Tax - Film Production Activity Credit

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HOUSE BILL 908

Crossfiled with: SENATE BILL 596

Sponsored By:
Delegates Hixson, Griffith, Bohanan, Cardin, G. Clagett, Doory, George, Guzzone, Ivey, Olszewski, Pena-Melnyk, Rice, Ross, Stukes, F. Turner, and Walker

Entitled:
Income Tax - Film Production Activity Credit

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Synopsis:

Allowing a qualified film production entity to claim a credit against the State income tax for specified costs incurred for film production activities; repealing the Film Production Rebate Program; requiring the Department of Business and Economic Development to administer the credit; requiring that the estimated total direct costs incurred in the State exceed $500,000; providing that the total direct costs may not include wages that exceed $1,000,000; applying the Act to taxable years beginning after 2008; etc.

Ways & Means Committee (W&M)
Chair: Sheila E. Hixson
Room 131, House Office Building
Annapolis, MD 21401-1912
(410) 841-3469

Budget & Taxation Committee (B&T)
Chair: Ulysses Currie
3 West, Miller Senate Building
Annapolis, MD 21401
(410) 841-3690

MARYLAND FILM PRODUCTION ACT OF 2009
POST EXPENDITURE REBATE

• Legislation will be introduced in the 2009 session of the Maryland General Assembly to establish a Post Expenditure Rebate for qualifying film production activity in Maryland.
• The new program will be structured in a manner that recognizes the tax revenues, economic activity, and other benefits generated by film production activity brought into the state. These benefits to Maryland state government and its local jurisdictions will provide the source of funding for the Post Expenditure Rebate program.
  
  A January 2009 report commissioned by the State of New Mexico concludes that $1.50 in state and local taxes are created for every $1 provided in post expenditure rebates

• The Post Expenditure Rebate will be equivalent to 28% of documented, qualifying expenditures and will be made only after completion of the film production activity
  
  Types of film production activities that are eligible –
  
  
  1. Must be intended for nationwide commercial distribution
  2. Includes feature films, television projects, commercials, corporate films,  music videos, and digital/animation/multimedia projects
  3. Does not include student films, noncommercial videos, sports broadcasts, broadcasts of live events, or talk shows
     
  Qualifying film production expenditures include:
  
  
  1. Expenditures occurring in Maryland on film production activities having a minimum expenditure level of at least $500,000 in Maryland
  2. Includes employee wages and benefits (subject to certain limits), fees for services, acquiring or leasing real property or tangible or intangible personal property
  3. Must be incurred in the state and necessary to carry out a film production activity
  4. Financial information submitted in an effort to claim a rebate must be validated by a certified public accountant (CPA)

• A qualified film production entity must notify the Secretary of the Department of Business and Economic Development (DBED) of its intent to claim the Post Expenditure Rebate – before beginning production in the state
• This program replaces the current film production rebate which is a budgeted item within the Department of Business and Economic Development.