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Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
1. ALL goods and services must be provided by a qualified vendor. A qualified vendor is a vendor that(1) Is qualified to do business in the State and, if applicable, registered and in good standing with theState’s Department of Assessments and Taxation; (2) Maintains a physical location in the State fromwhich employees of the vendor are based; (3) Provides good and services to the film production entitywhich are provided in the vendor’s historic ordinary course of business; and, (4) The goods andservices provided by the vendor to the film production entity are generated from the vendor’s physicallocation in the State, unless generated from an on-line order. Goods or services which are specializedor technical in nature and are not reasonably available from a qualified vendor may be provided by anon-qualified vendor with the prior approval of the Department. This requirement must be met if thegoods and/or services are bought and/or rented directly by the production company or through anotherentity.>> To request an exception, submit a Due Diligence Form for Use of a Non-Qualified Vendor
2. The total direct costs may not include any salary, wages or "other compensation " of an individual whoreceives more than $500,000 for personal services in connection with the film production activity.Compensation includes any payments of wages and/or benefits made to the individual whether paiddirectly to the individual through cash or a payroll company OR paid to the individual as a loan out orpersonal services corporation. "Other compensation " includes employer fringes and payments madedirectly to the employee (i.e., per diem, housing allowance, travel allowance, meal allowance, carallowance, cell phone allowance, kit/box rental, relocation fees, etc.). Salary, wages and "other compensation " are included in calculating the $500,000 threshold. If that $500,000 threshold isreached, then no costs, including the "other compensation, " qualify. In addition, the $500,000 insalary, wages or "other compensation " is for the length of the production activity (prep, pre-production, principal, post ); not just for time in Maryland.
3. The total direct costs may not include any salary, wages or "other compensation" for writers, directorsor producers, which are defined as crew members whose credited position contains either writer,director or producer in the title. Those positions include, but are not limited to, Directors, 2nd UnitDirectors, 1st ADs, 2nd ADs, Executive Producers, Associate Producers, etc. For crew memberswhose credited position is a strictly technical role, such as Lighting Director, Casting Director, Directorof Photography and Art Director, and assistants whose credited position contains writer, director orproducer in the title, their wages, salary and other compensation are eligible direct costs. "Othercompensation" includes employer fringes and payments made directly to the employee (i.e., per diem,housing allowance, travel allowance, meal allowance, car allowance, cell phone allowance, kit/boxrental, relocation fees, etc.).
4. Direct costs must be PRO-RATED based upon the time personnel or materials were IN Maryland andworking or used in connection with the film production activity. Insurance premiums, and the like, willbe considered as direct costs for the portion allocable to the time spent in Maryland.
Page 1
COVER SHEET
Goods and Services must be provided by a qualified vendor.
Expenditures eligible to be included in the Total Direct Costs are outlined in the following Authorized Direct Costs List
This list is provided for guidance and is subject to interpretation and change by the Department at any time.
Additional guidelines regarding authorized direct costs are:
Authorized direct costs are for time or use in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
5. The total direct costs may not include costs associated with filming outside of Maryland borders,including Washington, DC. Costs paid in a lump sum for activities occurring both in and out of thestate must be PRO-RATED for the time and costs allocable to the time in Maryland only.
6. The total direct costs must be reasonable and negotiated at arms-length.
7. Only direct costs directly incurred by the film production entity will qualify.
8. Direct costs may only be attributed to the film production activity once.
9. Direct costs must be the NET cost of the goods or services, i.e., security deposits must be netted out,etc.
10. For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial costof the material or good less its value or resale upon completion of the film production activity in theState.
11. Only travel expenses INTO Maryland are authorized as a direct cost. Thus, the end point of that leg oftravel must be in Maryland. The cost of round trip fares into Maryland would be divided in half.
12. Either a relocation fee OR housing is authorized as a direct cost, not both.
13. The total direct costs may not include costs for Entertainment, Gifts or Gratuities or any costs codedas such.
14. The total direct costs may not include costs for the purchase of vehicles, or other items, which areused primarily for personal use.
15. The total direct costs may not include costs for any materials, goods or services that have beenrecouped by any insurance policies.
16. The total direct costs may not include costs for taxes and fees paid to other jurisdictions, including theFederal Government.
17. The total direct costs may not include costs for penalities, fines, overages or similar costs.
January 2020
Page 2
COVER SHEET
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Story Rights - Purchase NOAcquisition Expenses NOFringes NO
Writers NOStory Editor / Consultants YESAssistants YESSecretaries YESOffice Rental YESResearch YESScript Timing YESScript Printing / Duplication YESMaterials & Supplies YESClearances NOScript Publication Fee / WGA NOBox / Kit Rentals YES / NO NO, for writersCell Phones / Allowance YES / NO NO, for writersCar Allowance / Mileage YES / NO NO, for writersCar Rentals YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESEntertainment NOFringes See FRINGE BENEFITS (ATL) Category
Executive Producer NOLine Producer NOProducers NOAssociate Producers NOAssistants YESSecretaries YESOffice Rental YESTrailer Rental YESSupplies / Purchases / Rentals YESBox / Kit Rental YES / NO NO, for producersCell Phones / Allowance YES / NO NO, for producersCar Allowance / Mileage YES / NO NO, for producersCar Rental YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESProducer Overhead Charge NOWrap Party / Crew & Cast Gifts NOEntertainment NOFringes See FRINGE BENEFITS (ATL) Category
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.
All salary, wages and "other compensation" of individuals who receive more than $500,000 for personal services in connection with the film production activity do not qualify.
PRODUCER & STAFF
STORY & RIGHTS
All salary, wages and "other compensation" of individuals who receive more than $500,000 for personal services in connection with the film production activity do not qualify.
WRITING
Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Director NOSecond Unit Director NODialogue Coach / Similar Specialist YESAssistants YESSecretaries YESChoreographers / Technical Advisors YESDirector Office Rentals YESTrailer Rental YESSupplies / Purchases / Rentals YESBox / Kit Rentals YES / NO NO, for directorsCell Phones / Allowance YES / NO NO, for directorsCar Allowance / Mileage YES / NO NO, for directorsCar Rentals YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESEntertainment Allowance NOFringes See FRINGE BENEFITS (ATL) Category
Principal Cast YESSupporting Cast YESDay Player YESWeekly Player YESPrincipal Cast Personal Assistants YESPrincipal Cast Expenses YESTeacher / Welfare Worker YESStunt Coordinator YESStunt Players YESStunt Equipment / Supplies / Purchases / Rentals YESLooping & Expenses YESCasting Director YESCasting Assistants YESCasting Office Expenses YESTrailer Rental YESWardrobe Allowance YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESResiduals NOGifts NOEntertainment Allowance NOFringes See FRINGE BENEFITS (ATL) Category
All salary, wages and "other compensation" of individuals who receive more than $500,000 for personal services in connection with the film production activity do not qualify.
DIRECTOR & STAFF
PRINCIPAL TALENTAll salary, wages and "other compensation" of individuals who receive more than $500,000 for personal services in connection with the film production activity do not qualify.
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Travel YES INTO or within Maryland ONLYGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYTravel Agent Fees YESTravel Day Salaries YES / NO NO, for writers, directors or producersLuggage / Baggage Fees YES / NO NO, for writers, directors or producersLiving Allow's / Housing / Hotels (1) OR Relocation Fee (2) YES / NO 1 OR 2 / NO, for writers, directors or producersMeal Allowances / Meals YES / NO NO, for writers, directors or producersPer Diems YES / NO NO, for writers, directors or producers
Health & Welfare, Pension Plan, Vacation, Holiday YES / NO NO, for writers, directors or producersWorkers Compensation YES / NO Maryland ONLY / NO, for writers, directors or producersState Unemployment Insurance YES / NO Maryland ONLY / NO, for writers, directors or producersFederal & State Income Taxes YES / NO NO, for writers, directors or producersFICA, FICA2, FUI, FUTA YES / NO NO, for writers, directors or producersLocal Hire Fringes YES / NO NO, for writers, directors or producersPayroll Handling Fees NOUnion Dues NOResiduals NORetroactive Pay NODeferred / Leveraged / Profit Participation Costs NO
Production Manager YESProduction Supervisor YESFirst Assistant Director NOSecond AD's / Trainees NOScript Supervisor YESLocation Manager YESAsst Location Managers & Scouts YESTech Advisors / Consultants / Interpreters YESProduction Coordinator YESAsst Production Coordinator YESProduction Secretaries YESProduction Assistants YESProduction Accountant YESAssistant Production Accountants YESPayroll Accountant YESPayroll Services YESPayroll Handling Fees NOPre-Production Breakdown YESBoards / Budgets YES
PRODUCTION
FRINGE BENEFITS (ATL)
All salary, wages and "other compensation" of individuals who receive more than $500,000 for personal services in connection with the film production activity do not qualify.
PRODUCTION STAFF
TRAVEL & LIVING (ATL)
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Storyboards / Pre-Visualization YESScript Timing YESPurchases / Rentals YESBox / Kit Rentals YES / NO NO, for directorsCell Phones / Allowance YES / NO NO, for directorsCar Allowance / Mileage YES / NO NO, for directorsCar Rentals YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESFringes See FRINGE BENEFITS (BTL) Category
Stand-Ins YESExtras YESTeachers / Welfare Workers YESSideline Musicians YESFittings / Makeup / Interviews YESWardrobe YESAtmosphere Cars YESWardrobe YESExtras Casting Director YESExtras Casting Assistant YESCasting Service Fee YESPayroll Handling Fee NOExtras Casting Purchases / Rentals YESPolaroid YESTelephone / Office YESFringes See FRINGE BENEFITS (BTL) Category
Director of Photography YESAsst Cameramen & Operators YESSteadicam Operator YESTechnical Supervisors YESStill Photographer YESLoader YESCamera Package YESCamera Rentals YESPurchases / Supplies YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
EXTRA TALENT
CAMERA
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Production Designer YESArt Director YESAsst Art Director YESSet Designers YESArt Department Coordinator YESIllustrators YESCT Hire YESSketch / Storyboard Artist YESSet Model Builders YESProduction Assistants YESPurchases & Supplies YESProcessing YESResearch Materials YESEquipment YESRentals YESMisc. Expenses YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Construction Coordinators YESConstruction Foremen YESStage Set Construction Labor YESLocation Set Construction Labor YESStage Set Construction Materials Purchase / Rental YESLocation Set Construction Materials Purchase / Rental YESStage Set Striking Labor YESStage Set Striking Materials Purchase / Rental YESLocation Set Striking Labor YESLocation Set Striking Materials Purchase / Rental YESSet Restoration / Storage YESFold & Hold Sets YESGreens Purchase YESBackings Rental / Purchase YESScissors Lifts / Forklifts YESLighting Platforms YESScaffolding Rentals YESTrash Removal YESBox / Kit Rentals YESCell Phones / Allowance YES
ART DEPARTMENT
SET CONSTRUCTION
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 8
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Car Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYConstruction Expendables YESLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
SFX Coordinator YESSFX Foreman YESSFX Assistants YESSFX Labor YESManufacturing Labor & Materials YESPurchases YESEquipment Rentals YESRig & Strike YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Key Grip YESGrips -- All YESCraft Service Persons YESGreensperson - Company YESStand By Carpenters / Painters YESSet Watch / Fireman YESFirst Aid Services, Materials YES ON SET ONLYMedics YESHeating / Air Conditioning YESPurchases YESGrip Package YESGrip Expendables YESAdditional Equipment YESLumber YESCraft Service YESCraft Service Purchases YESRentals YESTruck Package YESHelicopter Rental YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
SPECIAL EFFECTS
SET OPERATIONS
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 9
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Chief Lighting Technician YESLighting Assistant & Technicians YESRig & Strike YESLamp Operators YESGenerator Operator / Assistants YESSpecial Equipment Operator YESElectricians YESElectric Package YESStage Package YESRigging Package YESCable Package YESAdditional Equipment YESSpecialty Lighting YESGenerator Rentals YESElectric Hookup YESCurrent YESPurchases-- Expendables, Gels, Etc. YESGlobes & Carbons YESRentals YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Set Decorator YESLeadmen / Buyer YESSet Dressing Labor YESSet Dress Purchase & Materials YESManufacturing / Materials YESDrapery / Carpet YESCleaning YESFixtures YESRentals - All Sets YESResearch YESFilm Processing YESExpendables YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
ELECTRICAL
SET DRESSING
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Propmaster YESAssistant Propmaster & Labor YESWeapons Handler YESFood Stylist YESManufacturing Labor / Materials YESPurchases & Rentals YESFilm Processing YESResearch YESExpendables YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Picture Car Coordinator YESPicture Car Drivers YESPicture Car Rentals / Modifications YESPicture Car Purchases YESPicture Car Expense YESMarine Purchases / Rentals YESAircraft / Helicopter Rentals YESTrain / Railroad Rentals YESAnimals YESTrainer Expenses YESWranglers, Handlers YESFeeding & Stabling YESAnimal Purchases / Rentals YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Visual FX Supervisor YESVFX Producer NOVFX Coordinator YESVFX Data Wrangler YESVFX Stenographer YESVFX Editor YES
ACTION PROPS
PICTURE VEHICLES / ANIMALS
VISUAL EFFECTS (PRODUCTION)
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Concept Design & Look Dev YESPre-Visualization YESStereoscopic Unit YESSet Survey Unit / 3D Scanning YESVFX Physical Production Unit YESMiniatures / Models Photography YESMotion Capture Photography YESStop Motion & Animatronics Unit YESDigital Matte Painting YESTracking & Match Move YESRotoscoping & Paint YESWire / Rig Removal / Fix It Work YESCG Modeling YESTexturing / Lighting / Shading / Rendering YESCG Animation / Rigging YESFX Animation YESFilm Scanning / Data Capture / Transcoding YESPurchases / Rentals YESMisc Expenses YESBox / Kit Rentals YES / NO NO, for producersCell Phones / Allowance YES / NO NO, for producersCar Allowance / Mileage YES / NO NO, for producersCar Rentals YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Process Operating YESBlue Screen YESMatte Shots Contract YESMatte Crew Expenses YESAnimation YESMiniature Contact YESMiniature Expenses YESComputer Graphics YESEquipment Rentals YESPurchases / Rentals YESMisc Expenses YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
SPECIAL PHOTOGRAPHY
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 12
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Costume Designer YESDesigner Staff YESWardrobe Labor YESCostumers & Assistants YESCleaning & Dying YESAlterations & Repairs YESAllowance (for use of personal wardrobe) YESPurchases & Rentals YESResearch YESExpendables YESWashing Machine & Dryer YESShop Set Up YESPolaroid YESMisc. Expenses YESWardrobe Rentals YESBox / Kit Rental YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Key Makeup Artists YESKey Hairstylist YESAdditional Makeup YESAdditional Hairstylist YESBody Makeup Artist YESMakeup Purchases / Supplies YESHairdressing Purchases / Supplies YESMakeup Rentals YESHairdressing Rentals YESChair Rental YESWigs Purchase / Rentals YESSpecial FX Makeup / Prosthetics YESAppliances YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
MAKEUP & HAIRDRESSING
WARDROBE
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Mixer YESBoom Operator YESAdditional Labor Sound YESSound Package YESAdditional Equipment YESWalkie Talkies YESBeepers YESPurchases YESRentals YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Scouting Labor YESScouting Expenses YESSite Fees & Rentals YESRelocation Fees for Site Usage YESLocation Permits YESPolice / Firemen / Watchmen YESSet Security YESLocations Purchases / Rentals YESCaterers / Catered Meals YESCatering Labor YESExtras Catering YESProduction Meals YESOffice Rentals / Expenses / Utilities YESOffice Supplies YESOffice Equipment YESOffice Equipment Rentals YESTelephone Charges YESCell Phone Allowance / Charges YESShipping / Fed Ex / Mailing Expenses YES INTO or within Maryland ONLYBaggage / Equipment Shipping YES INTO or within Maryland ONLYFilm Shipping YES INTO or within Maryland ONLYMileage YESParking YESLocation Restoration YESCleaning YESTrash Bins / Trash Removal YESArt Dept Office YESSet Dec / Props Warehouse YES
PRODUCTION SOUND
LOCATIONS
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 14
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Construction Mill YESIT Services YESMisc. Expenses YESTraffic & Parking Tickets / Towing NOBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYEntertainment / Gratuities NOWrap Party NOLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Travel YES INTO or within Maryland ONLYGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYTravel Agent Fees YESTravel Day Salaries YES / NO INTO or w/in MD ONLY / NO, for directors or producersLuggage / Baggage Fees YES / NO INTO or w/in MD ONLY / NO, for directors or producersLiving Allow's / Housing / Hotels (1) OR Relocation Fee (2) YES / NO 1 OR 2 / NO, for directors or producersMeal Allowances / Meals YES / NO NO, for directors or producersPer Diems YES / NO NO, for directors or producers
Supervision YESTechnical Director YESVideo Operator YESVideo Recordist YESVideo Assistant YESAdditional Labor YESPurchases YESSupplies YESRentals YESVideo Assist Package YESVideo Transfers YESVideo Editing YESVideo Contact YESFringes See FRINGE BENEFITS (BTL) Category
Transportation Coordinator YESCaptains YESDrivers YESTrucks & Vehicles YESGas & Oil YESGenny Gas & Oil YES
TRANSPORTATION
TRAVEL & LIVING (BTL)
VIDEO PLAYBACK & ASSIST
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 15
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Maintenance / Repairs YES If not covered by insuranceCar Wash YESHoneywagon / Trailer Supplies YESCranes YESInsert Car YESCamera Cars YESParking YESTraffic & Parking Tickets / Towing NOTolls / Road Permits YES Maryland onlyPurchases / Rentals YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYDriver Meal Allowances YESLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Raw Stock YESSteadicam YESNegative Develop YESDevelop (90%) YESPositive Printing YES1/4" Sound Tape YESSound Transfers YESTelecine Transfers YESVideo Cassette Dailies YESPrint One Lite Dailies YESProjection YESStill Photo Stock / Developing YESPolaroid - All Departments YES
Stage Rental YESStage Utilities YESStage Telephone YESStage Security YESStage Restoration YESOther Studio Facilities / Charges YESStage Use / Licensing Agreement YESStage Includes Power / Security YESStage Personnel Charges YESMessengers YES INTO or within Maryland ONLYPostage YESShipping YES INTO or within Maryland ONLYPrep / Strike YES
STAGE EXPENSES
PRODUCTION FILM & LAB
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Shoot YESPower YESBacklot Rental YESDressing Room Rental YESCrew Parking YESDumpsters, Cleaning YESIT Services YESPurchases / Rentals YESMisc Expenses YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (BTL) Category
Audience NOTalent NOBleachers / Drapes / Signage NOFood / Drink NOTransport NOFringes NO
Same as First Unit NO, for writers, directors or producers
Health & Welfare, Pension Plan, Vacation, Holiday YES / NO NO, for directors or producersWorkers Compensation YES / NO Maryland ONLY / NO, for directors or producersState Unemployment Insurance YES / NO Maryland ONLY / NO, for directors or producersFederal & State Income Taxes YES / NO NO, for directors or producersFICA, FICA2, FUI, FUTA YES / NO NO, for directors or producersLocal Hire Fringes YES / NO NO, for directors or producersPayroll Handling Fees NOUnion Dues NOResiduals NORetroactive Pay NODeferred / Leveraged / Profit Participation Costs NO
SECOND UNIT / SPECIAL UNIT / ADDITIONAL PRINCIPAL PHOTOGRAPHY
AUDIENCE RELATIONS
FRINGE BENEFITS (BTL)
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 17
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Film Editor YESAssistant Film Editors YESConforming YESPost Prod Supervisor YESPost Prod Accountant YESPost Prod Coordinator YESProduction Assistants YESContinuity Script YESContinuity Expenses YESScreenings NOProjectionist YESEditorial Room Rentals YESNon Linear Editing Systems YESPost Production Office Rental YESPost Ship YES INTO or within Maryland ONLYMessengers YES INTO or within Maryland ONLYCoding & Misc. Editorial YESCoding Equipment YESSound Effects Editing YESADR Editing YESNegative Cutting YESMusic Editors YESPurchases YESExpendables YESRentals YESEditors' KEM / Equipment YESBins, Sync, Racks YESLightworks System YESEquip, Deliver / Pickup YES INTO or within Maryland ONLYSound Editors' Room YESMusic Editors' Room YESOther Equipment YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESLoss & Damage / Liability NOFringes See FRINGE BENEFITS (POST PROD) Category
POST PRODUCTION
EDITING & PROJECTION
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 18
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Clearances / Licensing NOSongwriters YESComposers YESMusic Supervisor YESArrangers YESCopyists YESScoring Musicians YESPre-Score Musicians YESUnderscore Musicians YESScoring Stage YESRental & Cartage YESVocal Talent YESVocalists YESMusic Editors YESMusic Edit Rooms / Equipment YESPurchases / Rentals YESMisc Expenses YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESLoss & Damage / Liability NOFringes See FRINGE BENEFITS (POST PROD) Category
Supervising Sound Editor YESSound Editors YESSound Equipment / Room Rental YESDubbing Stage YESADR Stage YESADR Expenses YESFoley Stage / Expenses YESFoley Efx Recording YESTemp Dub YESPremix Dub YESFinal Dub YESPost Preview / Session YESAll Transfer Costs YESPrint Master YESForeign Mu / Fx YESDTS YESWalkers YESVideo Transfer YESTape Transfer YES
MUSIC
SOUND
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
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Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Dubbing YESPurchases YESEquipment Rental YESDolby Cards YESDTS Fee NOLicense Fee NODolby License NODTS License NOSDDS License NOClose Captioning YESMisc Expenses YESBox / Kit Rentals YESCell Phones / Allowance YESCar Rentals / Allowance / Mileage YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYWorking Meals YESLoss & Damage / Liability NOFringes See FRINGE BENEFITS (POST PROD) Category
Film Leader YESStock Shot Purchase YESStock Shots Labor YESStock Shots Film & Process YESStock Footage License Fee YESStock Footage Elements / Expenses YESOn Line Editing YESReprints YESLab Special Handling YESVideo Cassettes / Tape YESReversal Dupes YESTape Purchase YESOpticals YESOptical Sound Track YESReference Print YESProtection Dupes YESComposite Print YESLaboratory Overtime YESNegative Cutting / Splicing YESAnswer Prints YESCheck Print YESInterpositive YESDigital Intermediate inc Scanning & Color Correction YESProtection Master - YCM YESMaster Positive / YCM YESVideo Masters YESAdditional Deliverables YES
FILM, LAB & STOCK SHOTS
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 20
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
VFX Supervisor YESVFX Producer NOVFX Coordinator YESVFX Editor YESComposting YESTracking & Match Move YESRotoscoping & Paint YESWire / Rig Removal / Fix It Work YESGraphic Art/ Animation YESData I/O, Archiving & Deliverables YESPurchases / Rentals YESMiniatures YESMattes YESMisc Expenses YESBox / Kit Rentals YES / NO NO, for producersCell Phones / Allowance YES / NO NO, for producersCar Allowance / Mileage YES / NO NO, for producersCar Rentals YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYLoss & Damage / Liability NOFringes See FRINGE BENEFITS (POST PROD) Category
Main & End Titles NOTitle Designer NOTextless NOOptical Development NOOptical Effects NOInserts NOTrademarks & Rating NOMisc Expenses NOFringes NO
Travel YES INTO or within Maryland ONLYGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYTravel Agent Fees YESTravel Day Salaries YES / NO INTO or w/in MD ONLY / NO, for producersLuggage / Baggage Fees YES / NO INTO or w/in MD ONLY / NO, for producersLiving Allow's / Housing / Hotels (1) OR Relocation Fee (2) YES / NO 1 OR 2 / NO, for producersMeal Allowances / Meals YES / NO NO, for producersPer Diems YES / NO NO, for producers
VISUAL EFFECTS
TITLES, OPTICALS, INSERTS
TRAVEL & LIVING (POST PRODUCTION)
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 21
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Health & Welfare, Pension Plan, Vacation, Holiday YES / NO NO, for producersWorkers Compensation YES / NO Maryland only / NO, for producersState Unemployment Insurance YES / NO Maryland only / NO, for producersFederal & State Income Taxes YES / NO NO, for producersFICA, FICA2, FUI, FUTA YES / NO NO, for producersLocal Hire Fringes YES / NO NO, for producersPayroll Handling Fees NOUnion Dues NOResiduals NORetroactive Pay NODeferred / Leveraged / Profit Participation Costs NO
Production Insurance YES Portion allocable to time in MarylandMiscellaneous such as Errors and Omissions NO
Unit Publicist YESPublicity Contract YESOutside Photographer YESStills Film & Processing for Shoot YESPurchases / Expenses YESEPK / On Set YESGround Transportation / Car Service / Taxis YES INTO or within Maryland ONLYEntertainment NO
Product Placement Credits NO
MPAA Seal NOWork Order Transfers NOLegal Fees YES Must be licensed in MarylandBank / Exchange Costs NOBank Fees NOOutside Bank Interest NOCertified Public Accountant YES Must be licensed in MarylandIndependent Auditor for Tax Credit YES Must be licensed in MarylandOffice Space Rental YES
OTHER
FRINGE BENEFITS (POST PRODUCTION)
INSURANCE
UNIT PUBLICITY
PRODUCT PLACEMENT
GENERAL EXPENSES
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
Maryland Department of CommerceMaryland Film Production Activity Tax Credit - Authorized Direct Costs
page 22
Category Eligible Comments
Authorized direct costs are for time or use in Maryland and must be PRO-RATED.Goods and services must be provided by a qualified vendor (see Cover Sheet #1 ).
Office Equipment Rental YESOffice Purchases YESComputers & Software YESTelephones YESPreviews / Research Screenings NOPreview Expenses NOCast & Crew Screenings NOPostage YESShipping YES INTO or within Maryland ONLYIT Services YESMisc Expenses YESOSHA Safety NOEntertainment / Gratuities NOWrap Party NOAccounting Fees YES Must be licensed in Maryland
Claims NODeductibles NORecoverable Costs NO
COMPLETION BOND YES Portion allocable to time in Maryland
CONTINGENCY YES If used for qualified direct costs
INSURANCE CLAIMS
For all materials or goods with an initial cost greater than $1,000, the direct cost will be the initial cost of the material or good less its value or resale upon completion of the film production activity in Maryland.
