Theatrical Production Tax Credit
About this page. This page explains the Maryland Theatrical Production Tax Credit in plain language. The credit is codified at Maryland Tax-General Article §10-756. It was created by Senate Bill 597 / House Bill 641 (2022) - PDF and amended by Senate Bill 440 (2026, Chapter 19) - PDF, effective July 1, 2026. See also the program guidelines - PDF. If anything on this page conflicts with the statute or program guidelines, the statute and guidelines control.
Program Status
The program is currently active.
Applications are accepted on a rolling basis through email to Commerce.
Sunset date: The credit applies to taxable years beginning before January 1, 2032 and terminates June 30, 2032, unless further extended by the Maryland General Assembly.
Important: Applications must be submitted BEFORE any work begins on the theatrical production activity in Maryland. Costs incurred before the Application for Qualification is submitted are not eligible.
What This Program Does
The Theatrical Production Tax Credit provides a refundable Maryland state income tax credit equal to 25% of qualified production costs incurred by eligible theatrical production entities in Maryland.
Because the credit is refundable, a production entity that receives a credit larger than its Maryland income tax liability is eligible to receive a refund for the difference.
The program is designed to bring national tours and pre-Broadway theatrical productions to Maryland, supporting Maryland’s live performance industry, theaters, and related businesses.
Who This is For
The credit is for for-profit theatrical production entities producing live stage theatrical productions that fall into one of two categories:
- National Touring Production — at least 2 public performances in Maryland, then 4+ weeks of performances in 4+ cities outside Maryland after the Maryland run.
- Pre-Broadway Production — at least 8 public performances in Maryland, in an original or adaptive version not performed (or only on a limited basis) in the prior 5 years, prepared exclusively in Maryland for a Broadway run within 12 months.
The table below shows the key differences between the two production types.
| National Touring | Pre-Broadway | |
|---|---|---|
| Minimum public performances | 2 performances | 8 performances |
Post-Maryland touring requirement | After the final Maryland performance, the production must perform a total of 4 weeks or more in at least 4 cities outside Maryland | Not required — the Pre-Broadway track has different post-performance criteria below |
Originality / prior performance | No restriction on prior performances | The production must be in its original or adaptive version AND have never been performed, or only on a limited basis, in the immediately preceding 5 years |
Broadway commitment | Not required | Must be prepared exclusively at the Qualified Theatrical Production Facility for a presentation in the Broadway theater district within 12 months of the final performance in the Qualified Theatrical Production Facility |
Important: Nonprofit theatrical production companies DO NOT qualify. The production entity must be a for-profit business.
Theatrical Production Tax Credit Definitions
A for-profit business entity producing a live stage theatrical production (a National Touring Production or a Pre-Broadway Production) that is approved by the Secretary of Commerce as eligible for the credit.
A facility located in Maryland in which a theatrical production is performed — in practical terms, a theater where live shows (plays, musicals, operas, etc.) are staged.
Eligible production expenses directly incurred in Maryland by the theatrical production entity, paid to a qualified vendor, for time or use in Maryland. See “How the Program Works” for the full eligibility rules and the Authorized Direct Costs list - PDF.
The date on which the production entity completes all Maryland production activity, as established by the applicant and the Department.
Program Duration and Limits
Credit rate and per-production cap
- Credit rate: 25% of qualified production costs incurred in Maryland
- Maximum credit per production: $2,000,000 — the Secretary may not issue tax credit certificates totaling more than this amount in the aggregate for a single theatrical production
- Minimum direct production costs in Maryland: more than $100,000
Annual program cap and carryforward
The Secretary may not issue tax credit certificates for credit amounts totaling more than $5,000,000 in any fiscal year.
If the total credits issued in a fiscal year come to less than $5,000,000, the unused amount may be carried forward and issued in a later fiscal year. The total amount carried forward from all prior fiscal years may not exceed $20,000,000.
Note: The $20,000,000 figure is a ceiling on the total unused credit authority Commerce may accumulate across fiscal years. It is NOT the maximum credit for a single production — that limit remains $2,000,000.
Refundability
The credit is refundable. If the credit exceeds the production entity’s Maryland income tax liability for the year, the entity may claim a refund for the excess.
Credit reserved by Letter of Qualification
The Letter of Qualification issued by the Department reserves the maximum credit amount and states the fiscal year from which the credits will be drawn. A production cannot receive more credit than the amount specified in the Letter of Qualification.
Program authorization and sunset
The credit was created by Chapter 258/259 (HB 641/SB 597) of the 2022 session of the Maryland General Assembly and took effect July 1, 2022.
It was amended by Senate Bill 440 (2026, Chapter 19) - PDF, signed April 14, 2026 and effective July 1, 2026, which:
- extended the program’s termination date from June 30, 2027 to June 30, 2032, and
- added a $20,000,000 ceiling on the aggregate amount of unused credit authority Commerce may carry forward from prior fiscal years.
The credit applies to taxable years beginning after December 31, 2021 but before January 1, 2032.
How the Program Works
The credit equals 25% of the production entity’s authorized direct costs incurred in Maryland.
What counts as an authorized direct cost
Direct costs must be incurred by the qualified theatrical production entity, provided by a qualified vendor, and for time or use in Maryland only.
See the Authorized Direct Costs list - PDF for the full guidance. Examples of authorized direct costs include:
- Set construction and operation
- Special and visual effects
- Wardrobe, makeup, and related services
- Sound, lighting, staging, and related services and materials
- Salaries, wages, and other compensation (including related benefits) for work performed in Maryland by persons employed in the production
- Advertising and public relations associated with performances at a Qualified Theatrical Production Facility
- Rental of facilities and equipment in Maryland
- Vehicle leasing
- Food and lodging
- Travel expenses to bring persons to Maryland (see exclusion below)
Vendor rules
All goods and services must be provided by a qualified vendor.
If a good or service is specialized or technical and not reasonably available from a qualified vendor, the production entity may request approval to use a non-qualified vendor by submitting the Non-Qualified Vendor Due Diligence Form - PDF.
Individual compensation cap
Salaries, wages, or other compensation for personal services of an individual are subject to a cap: any individual receiving more than $100,000 per week in compensation for personal services in connection with the production is excluded from authorized direct costs.
Note: The Theatrical Production cap is per WEEK, not per production. This is different from the Maryland Film Production Activity Tax Credit, which has a $500,000 cap on TOTAL compensation per individual across the entire production. Confirm which credit you are applying for and which cap applies.
Travel rules
Only travel into Maryland is eligible. Travel expenses for bringing persons employed (directly or indirectly) by the theatrical production to Maryland may qualify. Expenses for departing from Maryland do not qualify, even for round-trip tickets.
Other rules and exclusions
Authorized direct costs cannot include:
- Compensation for any individual receiving more than $100,000 per week
- Refundable security deposits
- Purchase of real estate or vehicles (leasing of vehicles is allowed)
Key Eligibility Requirements
To qualify for the credit, all of these must be true:
- Production entity is for-profit (nonprofits do not qualify)
- Production qualifies as a National Touring Production or a Pre-Broadway Production
- Production is performed live in a Qualified Theatrical Production Facility
- Estimated total direct production costs incurred in Maryland exceed $100,000
- Production entity can demonstrate financing
- Application for Qualification is submitted before any work begins on the production in Maryland
- Application for Qualification is complete and signed, with a completed Application Addendum
- All statutory requirements are met
Documents You Will Need to Apply
Applicants should be prepared to provide the following at each stage of the process.
With the Application for Qualification
- Application for Qualification (PDF) - PDF — complete and signed
- Evidence of financing
- Description of the production (whether National Touring or Pre-Broadway)
- Production schedule showing where and when performances will occur
- Estimated total of authorized direct costs in Maryland
Before the first rehearsal
Before the conclusion of the final theatrical production (productions over $250,000 only)
- Draft engagement letter for the independent third-party CPA, including sample sizes and percentages for the Agreed Upon Procedures, approved by Commerce
With the Application for Final Tax Credit Certification
- Application for Final Tax Credit Certification (PDF) - PDF
- Maryland Theatrical Production Expenditure Report - PDF
- Final closing documentation, receipts, and proof of payment
- For productions with total authorized direct costs greater than $250,000: independent third-party CPA Agreed Upon Procedures report - PDF
- Certification that no amounts are owed to any Maryland entity that provided goods or services in connection with the production
Commerce may request additional documentation to verify eligibility.
How to Apply
Before applying, the Department recommends consulting a tax specialist or tax attorney regarding the potential tax impacts of receiving a Maryland Theatrical Production Tax Credit.
When | What is required |
|---|---|
| BEFORE any work begins on the theatrical production in Maryland | Submit the Application for Qualification with all required attachments to Commerce. |
Within 30 days of receiving a complete application | Commerce issues a Letter of Qualification stating the maximum credit amount and the fiscal year from which credits will be drawn. Applicants who don't meet requirements receive a notice of ineligibility. |
BEFORE the first rehearsal | Submit the Application Addendum to Commerce. |
Within 180 days of the final theatrical production | For productions with total authorized direct costs greater than $250,000: a draft engagement letter outlining sample sizes and percentages must be approved by the Department. Commerce determines sample sizes and percentages. |
Within 180 days after the completion date | Submit the Application for Final Tax Credit Certification with all required final documentation, including the independent CPA Agreed Upon Procedures report (if total authorized direct costs exceed $250,000). May be extended at Commerce’s discretion for circumstances beyond the production entity’s control. |
How to submit
Applications are submitted by email to Robin Bailey at the Maryland Department of Commerce.
Email: [email protected]
Applications received by email are time-stamped by the Department’s email system. Complete applications are reviewed in the order received. Materially incomplete applications are not considered.
Application Review Timeline
- Letter of Qualification: issued within 30 days after Commerce receives a complete application.
- Final Tax Credit Certificate: issued after Commerce reviews the Application for Final Tax Credit Certification, all closing documentation, receipts, and (if required) the CPA Agreed Upon Procedures report.
Processing times depend on a complete application with all required documents.
How You Claim the Credit
After Commerce issues a Tax Credit Certificate:
- File a Maryland state income tax return for the applicable tax year.
- Complete the Form 500CR section of the return.
- Include a copy of the Tax Credit Certificate with the return.
Important: The credit can only be claimed on an electronically-filed Maryland return. See the Comptroller of Maryland’s website for filing instructions.
If the credit exceeds the production entity’s Maryland income tax liability for the year, the entity may claim a refund for the excess amount.
For tax filing questions, contact the Comptroller of Maryland.
Outstanding Amounts to Maryland Vendors
As part of the Application for Tax Credit Certificate, the theatrical production entity must certify that no amounts are owed to any Maryland entity that provided goods or services in connection with the production.
If amounts are outstanding, Commerce will not issue a Tax Credit Certificate. The Certificate will not be issued until Commerce receives confirmation that all outstanding amounts have been paid.
Frequently Asked Questions
Theatrical Production Tax Credit FAQs
Yes. If the credit exceeds the production entity’s Maryland income tax liability for the year, the entity may claim a refund for the excess amount.
The credit applies to taxable years beginning before January 1, 2032 and terminates June 30, 2032, unless the Maryland General Assembly extends it again. The termination date was extended from 2027 to 2032 by Senate Bill 440 (2026, Chapter 19), effective July 1, 2026.
Yes. Commerce may not issue tax credit certificates totaling more than $5,000,000 in any fiscal year. If less than $5,000,000 is issued in a fiscal year, the unused amount carries forward to a later fiscal year, with the total carried forward from all prior years capped at $20,000,000.
No. The production entity must be a for-profit business to qualify for the credit.
Only National Touring Productions and Pre-Broadway Productions qualify. Both must be live stage theatrical productions performed at a Qualified Theatrical Production Facility (a facility in Maryland where live shows like plays, musicals, and operas are performed). See the comparison table in “Who This Is For” for the specific requirements of each type.
Yes. Estimated total direct production costs incurred in Maryland must exceed $100,000 to qualify.
The maximum credit award cannot exceed $2,000,000 for a single theatrical production.
Costs incurred before the Application for Qualification is submitted are not eligible. The application must be submitted before any work begins on the production in Maryland.
Any compensation paid to an individual receiving more than $100,000 per week in salary, wages, or other compensation for personal services in connection with the production is excluded from authorized direct costs. The compensation cap is per individual, per week.
Generally no — all goods and services must be provided by qualified Maryland vendors. If a good or service is specialized or technical and not reasonably available from a qualified vendor, the production entity may submit a Non-Qualified Vendor Due Diligence Form - PDF for prior approval.
No. Only travel expenses for bringing persons to Maryland may qualify. Expenses for departing from Maryland do not qualify, even as a portion of a round-trip ticket.
No — vehicle purchases are excluded from authorized direct costs. However, vehicle leasing is an allowed authorized direct cost.
Yes. Commerce may, at its discretion, extend the 180-day deadline for submitting the Application for Final Tax Credit Certification if a delay is caused by facts and circumstances beyond the production entity’s control. Contact Commerce as soon as you know an extension may be needed.
Commerce will not issue a Tax Credit Certificate until all amounts owed to Maryland vendors that provided goods or services in connection with the production have been paid. Settle all outstanding Maryland vendor amounts before applying for Final Certification.
Legal Notices and Required Language
This credit is codified at Maryland Tax-General Article §10-756.
Enacting and amending legislation:
- House Bill 641 / Senate Bill 597 (2022, Chapter 258/259) - PDF — created the credit, effective July 1, 2022
- Senate Bill 440 (2026, Chapter 19) - PDF — extended the sunset to June 30, 2032 and capped cumulative carryforward at $20,000,000; effective July 1, 2026
Program resources:
- Full Program Guidelines (PDF) - PDF
- Application for Qualification (PDF) - PDF
- Application Addendum (PDF) - PDF
- Application for Final Tax Credit Certification (PDF) - PDF
- Authorized Direct Costs List (PDF) - PDF
- Maryland Theatrical Production Expenditure Report (PDF) - PDF
- Agreed Upon Procedures (PDF) - PDF
- Non-Qualified Vendor Due Diligence Form (PDF) - PDF
Applicants should consult the statute and applicable regulations for the complete legal requirements governing this tax credit.