Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.02 - Film Production Activity-Employer Wage Rebate Grant Program › Section 24.05.02.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Economic Development Article, Title 4, Subtitle 4, Annotated Code of Maryland.
(2) "Applicant" means an individual, partnership, corporation, limited liability company, not-for-profit entity, or other form of entity permitted to do business in the State seeking a grant from the Department.
(3) "Department" means the Department of Business and Economic Development.
(4) Film Production Activity.
(a) "Film production activity" means the production, including preproduction, of a film or video project:
(i) For which the total direct costs incurred in the State are at least $500,000;
(ii) For which more than half of the principal photography will be done in the State; and
(iii) Which upon completion, will be distributed nationwide.
(b) "Film production activity" does not include:
(i) Student films;
(ii) Noncommercial personal videos or films;
(iii) Sports broadcasts;
(iv) Broadcasts or filming of live events;
(v) Talk shows;
(vi) Reality television programs or films; or
(vii) Any activity which is not necessary to and undertaken directly and exclusively for the making of a master film, tape, or image.
(5) "Fund" means the Film Production Employer Wage Rebate Fund, which is administered by the Department.
(6) "Grant" means a grant made by the Department from the Fund under the provisions of the Act and this chapter.
(7) Qualified Employee Wages.
(a) "Qualified employee wages" means the first $25,000 of an employee's wages that are:
(i) Directly attributable to the employee's work in the film production activity in the State; and
(ii) Paid directly by the qualified film production employer to the employee.
(b) "Qualified employee wages" does not include:
(i) Any portion of the wages of an employee whose wages in connection with the film production activity equal or exceed $1,000,000;
(ii) The value of fringe benefits (whether paid by the employer or the employee), required payments by the employer such as social security contributions and payroll taxes, or deferred compensation; or
(iii) Any wages paid to, or earned by, an employee prior to the date the qualified film production employer opens a film production office in the State.
(8) "Qualified film production employer" means an employer:
(a) That is carrying out a film production activity; and
(b) That the Secretary has agreed to extend a grant from the Fund.
(9) Total Direct Costs of a Film Production Activity.
(a) "Total direct costs of a film production activity" means the total of costs incurred that are necessary to carry out a film production activity.
(b) "Total direct costs of a film production activity" includes costs incurred for:
(i) Employee wages and benefits;
(ii) Fees for services;
(iii) Acquiring or leasing real property or tangible or intangible personal property; or
(iv) Any other expense necessary to carry out a film production activity.