Economic Impact
Film, television and media productions have a strong economic impact on state and local economies. The industry provides high-paying jobs for crews, 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 1,240 Maryland businesses
Studies have demonstrated that film, television and media productions generate a great economic benefit for Maryland state and local economies, including direct, indirect and induced tax revenues. Since 2011, the film incentive program has brought 10 productions to Maryland, which have hired approximately 12,000 workers, contracted with nearly 12,000 Maryland businesses and generated over a half-billion dollars in economic impact.
According to the independent 2014 Regional Economic Studies Institute’s Report on the “Economic and Fiscal Impacts of the Film Production Tax Credit” in Maryland, for every reported $1 claimed in film tax credits, Maryland gains $1.03 in total additional property, sales, income and other tax revenues. Overall, the additional output Maryland receives from every $1 claimed under the current program is $3.69.
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. Visits to Maryland battlefields increased after Gods and Generals was released. Berlin uses their website to encourage fans of Tuck Everlasting and Runaway Bride to visit the Berlin sites where the movies were filmed. According to the 2014 RESI Report, in addition to simply appearing in a film, locations and local businesses benefit from attention from the stars who rave about them. Jane Fonda, Julia Louis-Dreyfus and Kevin Spacey have all spoken highly of Maryland’s cities, venues and workforces, based on their experiences in Maryland.
Maryland will continue to attract film production if it stands by a program with stability and predictability. Stability and predictability in the program are critical to ensuring a solid business climate – one that assures continued investment in our state.
ADDITIONAL INFORMATION – ECONOMIC STUDIES & REPORTS
RESI REPORT 2014
https://www.baltimorefilm.com/uploads/File/2014_RESI_Economic_Impact_Analysis.pdf
SAGE Economic Impact Report 2010
https://www.baltimorefilm.com/
Report of the Film Production Workgroup 2010
https://www.baltimorefilm.com/
MPAA Industry Economic Contribution Fact Sheet
https://www.mpaa.org/wp-content/uploads/2014/09/2014-MPAA-Industry-Economic-Contribution-Factsheet.pdf