Maryland House Bill HB1144

Maryland 2022 Regular Session

• Introduced: 2/11/22
• Refer: 2/11/22

Caption

Income Tax - Film Production Activity Tax Credit - Filming Locations

Impact

The proposed changes under HB1144 will likely have significant implications for state laws related to tax credits and economic incentives. By earmarking funds specifically for small or independent film entities and certain counties, the bill aims to address regional disparities in film production opportunities within Maryland. Supporters argue that this will lead to an increase in jobs and economic stimulation in areas that may not have previously experienced substantial film activity, while critics may point to concerns about the equitable distribution of state resources.

Summary

House Bill 1144 focuses on enhancing the film production activity tax credit in Maryland by requiring the Secretary of Commerce to allocate a specific percentage of tax credits for film production activities in designated counties. The bill stipulates that, starting in fiscal year 2023, 20% of the total credit amount available is designated for production activities in specified counties, aiming to bolster local film industries and promote economic growth in those areas. This initiative is a part of broader efforts to revitalize the state's economy post-pandemic by attracting filmmakers to less-served regions.

Contention

Points of contention surrounding HB1144 include potential disparities in funding between urban and rural film production activities. Considerations about how effectively the tax credits will be monetized by smaller production companies versus larger entities may also arise. Furthermore, the bill encourages local government involvement in determining the impact of these tax credits, leading to discussions about regulatory oversight and accountability in the distribution and utilization of the credits offered under the new provisions.