Economic Impact
Maryland has a long and successful history of attracting film, television and media productions. Maryland’s geographic, cultural, physical and historic attributes provide many favorable settings for film production. During the 1990’s, Maryland was one of the top locations to be considered by film, television and media producers. Our deep crew base, and well-respected film offices kept Maryland among the top US film destinations.
Unfortunately, the Maryland film industry is in decline. Maryland has lost pace compared to other states due to a lack of competitive incentives in the State’s current Film Production Rebate Program. Film industry decision makers—including many with a strong favoritism of Maryland—are directing film production companies to spend money in other states with proven film incentive programs. Something must be done to level the playing field now, or Maryland’s economy will suffer.
Film, television and media productions have a strong economic impact on State and local economies. Film, television and media productions are revenue generators and offer more exciting growth opportunities for businesses in Maryland than any other part of our economy. The industry provides high-paying jobs for crew, actors and support staff. The scope of production activity is broad, resulting in substantial expenditures with local businesses. Goods and services are purchased from many types of Maryland businesses, including hotels, restaurants, property rentals, art supply stores, lumber and paint companies, equipment and party rental stores, costume shops, thrift shops, fabric stores, sign shops, car rental companies, coffee shops and carry-outs. An average film does business with more than 500 Maryland vendors.
Ordinary citizens benefit from hosting film, television and media productions in their communities. Individuals may receive location fees for the use of their homes, fees for use of their cars as “picture cars.” Community associations, churches, recreation centers, VFW halls and community organizations benefit from donations and location fees for the use of their facilities and in gratitude of community support.
In addition to direct economic benefits, long term benefits include development and establishment of spin-off film production activities such as editing, sound production, creative and artistic activities, development of permanent facilities such as sound stages and studios, and cottage industries related to independent filmmaking, documentaries, music videos, advertising and interactive media production.
Tourism in Maryland is boosted by “Made in Maryland” film and television productions. Brides flock to The Inn at Perry Cabin because they watched Wedding Crashers. Fans of Homicide: Life on the Street are seen snapping photos by the Rec Pier in Fells Point nearly everyday. Visits to Maryland battlefields increased after Gods and Generals was released.
Other states have established proven models for attracting film production activities to their states to the detriment of Maryland. Maryland can adopt these proven methods which will result in the immediate generation of new economic activity. State and local tax revenues will receive the direct benefit of the new economic activities prior to distribution of the rebated portion of film production costs to the film production company.
Maryland must take steps now to stop our local film industry from moving away. Our great crew base is departing. Small businesses connected to the film industry are shrinking or collapsing. Our college graduates are leaving Maryland for jobs in the film industry in other states. There is no time to waste—more and more states will be enacting competitive rebate programs soon.
