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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*sb0440*
SENATE BILL 440
Q3 (6lr2131)
ENROLLED BILL
— Budget and Taxation/Ways and Means —
Introduced by Senator Guzzone Senators Guzzone, Bailey, Corderman, Hettleman,
King, McCray, and Salling
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his ap proval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Income Tax – Theatrical Production Tax Credit – Alterations and Sunset 2
Extension 3
FOR the purpose of extending the termination date limiting the excess amount of tax credit 4
certificates that the Department of Commerce may carry forward and issue in 5
subsequent taxable years for a credit against the State income tax for certain costs 6
related to certain theatrical productions in the State; extending the termination date 7
of the credit; and generally relating to the income tax credit for theatrical 8
productions. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–756(a)(1), (6), and (7) and (b) 12
Annotated Code of Maryland 13
2 SENATE BILL 440
(2022 Replacement Volume and 2025 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Tax – General 3
Section 10–756(f) 4
Annotated Code of Maryland 5
(2022 Replacement Volume and 2025 Supplement) 6
BY repealing and reenacting, with amendments, 7
Chapter 258 of the Acts of the General Assembly of 2022 8
Section 2 9
BY repealing and reenacting, with amendments, 10
Chapter 259 of the Acts of the General Assembly of 2022 11
Section 2 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Tax – General 15
10–756. 16
(a) (1) In this section the following words have the meanings indicated. 17
(6) “Qualified theatrical production facility” means a facility located in the 18
State in which a theatrical production is performed. 19
(7) “Secretary” means the Secretary of Commerce. 20
(b) (1) A qualified theatrical production entit y may claim a credit against the 21
State income tax for theatrical production activities in the State in an amount equal to the 22
amount stated in the tax credit certificate approved by the Secretary for a theatrical 23
production. 24
(2) If the tax credit allowe d under this section in any taxable year exceeds 25
the total tax otherwise payable by the qualified theatrical production entity for that taxable 26
year, the qualified theatrical production entity may claim a refund in the amount of the 27
excess. 28
(f) (1) Except as provided in paragraph (2) of this subsection, the Secretary 29
may not issue tax credit certificates for credit amounts in the aggregate totaling more than 30
$5,000,000 in any fiscal year. 31
(2) [If] SUBJECT TO THE LIMITATION UNDER PARAGRAPH (3) OF THIS 32
SUBSECTION, IF the aggregate credit amounts under the tax credit certificates issued by the 33
Secretary total less than the maximum provided under paragraph (1) of this subsection in 34
SENATE BILL 440 3
any fiscal year, any excess amount may be carried forward and issued un der tax credit 1
certificates in a subsequent fiscal year. 2
(3) THE AGGREGATE AMOUNT CARRIED FORWARD FROM ALL PRIOR 3
FISCAL YEARS IN ACCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION MAY NOT 4
EXCEED $20,000,000. 5
(4) The Secretary may not issue tax credit certificates for credit amounts 6
totaling more than $2,000,000 in the aggregate for a single theatrical production. 7
Chapter 258 of the Acts of 2022 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021, but 10
before January 1, [2027] 2032. It shall remain effective for a period of [5] 10 years and, at 11
the end of June 30, [2027] 2032, this Act, with no further action required by the General 12
Assembly, shall be abrogated and of no further force and effect. 13
Chapter 259 of the Acts of 2022 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021, but 16
before January 1, [2027] 2032. It shall remain effective for a period of [5] 10 years and, at 17
the end of June 30, [2027] 2032, this Act, with no further action required by the General 18
Assembly, shall be abrogated and of no further force and effect. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2026. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.