Film Production Sales and Use Tax Exemption
About this page. This page explains the Film Production Sales and Use Tax Exemption in plain language. The exemption is authorized under Maryland Tax-General Article §11-227. Certification is administered by the Maryland Film Office under Title 6, Subtitle 2 of the Economic Development Article. If anything on this page conflicts with the statute or regulations, the statute and regulations control.
Program Status
The program is currently active.
The Maryland Film Office accepts applications on a rolling basis. There is no annual deadline.
Producers should apply before making purchases for the production. Purchases made before the Film Office issues the exemption certificate are not eligible.
What This Program Does
This program exempts qualified film and video productions from the 6% Maryland sales and use tax on the property and services they buy, rent or use directly in a production.
The Film Office qualifies each project individually and issues a numbered exemption certificate for that project. The production presents the certificate to vendors at the point of purchase, and the vendor does not charge sales and use tax.
A production may use this exemption alongside the Film Production Activity Tax Credit. The two programs are separate and each has its own application.
Who This Is For
This exemption is for film producers and film production companies working on a project in Maryland that is intended for nationwide commercial distribution. Eligible project types include:
- Feature films
- Television and cable projects
- Commercials and infomercials
- Corporate films
- Documentaries
- Music videos
- Digital, animation and multimedia projects
The producer or production company must be compensated for the project. Each project must be certified separately.
Definitions
Film production activity. The production or postproduction of film or video projects, including feature films, television projects, commercials, corporate films, infomercials, music videos and digital, animation and multimedia projects, for which the producer or production company will be compensated and which are intended for nationwide commercial distribution. The statute excludes certain project types, so confirm eligibility with the Film Office before applying.
Certified film producer or film production company. A producer or production company that has received a Certificate of Eligibility for the Film Production Sales and Use Tax Exemption from the Maryland Film Office.
Buyer Certification. Comptroller Form COT/ST 131. This is the form the vendor keeps on file to support an exempt sale. It records the Commerce certificate number and the certificate expiration date.
How the Program Works
The exemption applies to property and services purchased, rented or used directly in connection with a certified film production activity in Maryland.
What is exempt
Exempt purchases, rentals and services include, but are not limited to:
- Vehicle rentals
- Camera equipment and supplies
- Lighting and stage equipment and supplies
- Sound and recording equipment and supplies
- Costumes, wardrobe and related construction materials
- Props, scenery and related construction materials
- Film and tape
- Design supplies and equipment
- Special effects supplies and equipment
- Fabrication, printing or production of scripts, storyboards, costumes, wardrobes, props, scenery and special effects
The certificate issued for each project includes the full list of eligible property and services. The complete lists, including examples of items that are not eligible, are set out in COMAR 03.06.01.35.
Important. The exemption covers property and services used directly in the production. Items that are not used directly in the production activity remain taxable. If you are unsure whether a purchase qualifies, ask the Film Office before you buy.
Key Eligibility Requirements
To use the exemption, a producer or production company must:
- Be certified by the Maryland Film Office for the specific project
- Be working on a project that meets the statutory definition of a film production activity
- Apply and receive the certificate before making purchases for the production
- Use the certificate only for the project it was issued for, and only for eligible property and services
- Use the certificate only during the period it is valid
Documents You Will Need to Apply
Applicants should be prepared to provide:
Project information
- Project title and type
- Production schedule, including start and end dates
- Locations where production activity will take place in Maryland
- Confirmation that the project is intended for nationwide commercial distribution
Company information
- Legal name and business structure of the producer or production company
- Contact information for the person managing purchasing for the production
- Signature and date from an authorized representative. The form may be completed electronically, and digital signatures and date stamps are accepted.
The Film Office may request additional information to confirm that a project qualifies.
How to Apply
- Download the Film Production Activity Sales and Use Tax Exemption Application - PDF - 147.8 KB and complete it in full. Incomplete applications cannot be processed.
- Sign and date the application, then email it to the Maryland Film Office.
- The Film Office reviews the application and determines whether the project qualifies.
- If the application is approved, the Film Office issues a numbered sales tax exemption certificate for that project within three working days. The certificate lists the items eligible for exemption and shows an expiration date.
- Make copies of the certificate and the attached list of eligible items to give to vendors.
Important. Do not make purchases before you have the certificate. Purchases made before the Film Office issues it are taxable.
Application Review Timeline
- Film Office review: varies based on the completeness of the application.
- Certificate issued: within three working days of approval.
How You Use the Exemption
Unlike a tax credit, this benefit is not claimed on a tax return. The exemption applies at the time of purchase.
Once the certificate is issued:
- Authorized purchasing agents designated by the producer present a copy of the certificate, along with the list of eligible items, to the vendor at the time of purchase.
- If you expect multiple purchases from the same vendor, you only need to present the certificate at the first purchase.
- The vendor attaches a copy of the Comptroller's Buyer Certification to all sales slips and submits documentation as the Comptroller's Office requires.
The certificate carries an expiration date and is no longer valid once production ends.
Compliance. The Comptroller's Office conducts periodic audits of production purchase records. Improper use of the certificate constitutes tax fraud and carries the fine or punishment that applies to that crime.
After Production Wraps
Submit a Production Expenditure Report - PDF - 344.21 KB once filming is complete. The report helps the Maryland Film Office track production activity across the state.
Frequently Asked Questions
Film Production Sales and Use Tax Exemption FAQs
A film producer or film production company certified by the Maryland Film Office for a specific qualified project. Eligible project types include feature films, television and cable projects, commercials, documentaries, music videos, corporate films, infomercials and digital, animation and multimedia projects.
Before you start buying for the production. Purchases made before the Film Office issues the certificate are taxable.
The Film Office issues the certificate within three working days of approving the application.
Each certificate is issued for a single project and carries an expiration date. It is no longer valid at the conclusion of production.
Yes. The Film Office qualifies each project individually and issues a certificate for that project only.
A copy of the certificate along with the attached list of eligible items. For repeat purchases from the same vendor, you only need to present it the first time.
Yes. The two programs are separate, and each has its own application and requirements.
Improper use constitutes tax fraud and carries the fine or punishment that applies to that crime. The Comptroller's Office audits production purchase records periodically to monitor compliance.
Legal Notices and Required Language
This exemption is authorized under Maryland Tax-General Article §11-227.
Regulations:
- COMAR 03.06.01.35, Property and Services Used in a Film Production Activity (Comptroller)
- COMAR 24.05.25, Film Production Activity Tax Exemption certification procedures (Commerce)
Program resources:
- Film Production Activity Sales and Use Tax Exemption Application (PDF) - PDF - 147.8 KB
- Production Expenditure Report (PDF) - PDF - 344.21 KB — submit after production wraps
- Statute (PDF) - PDF - 116.25 KB
- Regulations: eligible property and services (PDF) - PDF - 157.85 KB
- Regulations: requirements and procedures (PDF) - PDF - 160.69 KB
Applicants should consult the statute and applicable regulations for the complete legal requirements governing this exemption.
Contact
Josh Slates
Maryland Film Office
Maryland Department of Commerce
401 E. Pratt Street
Baltimore, MD 21202
Email: [email protected]