The Maryland Film Office proudly announced that 2006 was the biggest year on record for the film industry in the state.
Filmmaking generated $158 million over the past year, more than double the $66 million it produced in 2005.
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While this is great news, competitive measures taken by other states and Canada threaten some of Maryland?s recent film success.
Those measures would be hard to notice.
The hit HBO series “The Wire,” and successful films like “Ladder 49,” the Oscar-winning “Syriana,” and last summer?s comedy smash, “The Wedding Crashers,” were all shot here in Maryland.
The problem lies in what movies decided not to come here.
“Annapolis,” set at the United States Naval Academy, went to Philadelphia rather than shoot in Maryland.
An even bigger loss is the film version of John Waters? Broadway hit “Hairspray.”
Though a movie can?t be much more Maryland than “Hairspray,” the film?s producers decided to jitterbug their way to Vancouver rather than say “Good morning Baltimore.”
The reason in both cases was the same: better economic incentives for shooting outside of the state.
A comparison with one competing state tells the story: While Maryland offers a 5 percent sales tax exemption to film productions in the state and up to $2 million in wage rebates, North Carolina offers a tax credit package of 15 percent of a film?s expenses and as much as $7.5 million in tax credits.
The state of Louisiana recently gave $25 million in tax benefits to one production.
Meanwhile, Canada?s package is even better.
Our northern neighbor offers great economic incentives and producing films there costs less because the dollar buys more in Canada than in the United States.
Yet, Maryland Assistant Secretary of Tourism, Film, and the Arts Dennis Castleman says Maryland is competitive in the film business.
“The state has always responded when film companies ask for assistance,” he says, pointing to several increases in benefits packages signed into law by Governor Ehrlich.
“The Governor has been very proactive and I think the legislature has been cautious, but willing to listen and understand that the industry brings a tremendous amount of economic benefit to the state.”
Castleman says benefits packages offered by competing states are often not as effective as advertised.
“With other states, you do get a tax credit, but you may have to hold onto that or sell, or bring in acertain amount of business before you get it ? our incentives get you a check.”
Jack Gerbes, Director of the Maryland Film Office, says “Hairspray” is an exception, not a rule. “It was a bottom line issue.
We talked with their executives, but the past five films that the producers made, they made in Canada, so we knew we had that going against us.”
Adds Castleman, “It?s difficult to compete with Canada directly, especially when you factor in the exchange rate, federal, provincial and local incentives and labor costs.”
Without a doubt Maryland has had a terrific year, but keeping pace with other states may require an even more thorough benefits package to keep film work coming here.
Tom Moore hosts the AES Tom Moore Show (Saturdays 10 to 11 p.m.) on WCBM 680 AM. He earned his juris doctor in 2006 from the University of Baltimore. His Web site is www.tommooreradio.com.
