BALTIMORE (Map, News) - It’s no secret that filmmaking in Maryland is big business.

In the past decade, filming in the state has generated an average of $70 million annually in economic impact, and it continues to grow.

Movies recently filmed in Maryland have included “The Visiting” with Nicole Kidman, “Step Up,” “Rocket Science,” “Syriana,” “Wedding Crashers” and “Triple X: State of the Union.”

The HBO series “The Wire” wrapped up filming on its fourth season in April, and DBED officials expects it to return for a fifth season. Jack Gerbes, director of the Maryland Film Office, a division of the state Department of Business and Economic Development, said his office is in negotiations to bring two more feature films to the area but could not disclose the names of the pictures.

“We’re just waiting for the word about whether we have the green light,” Gerbes said. “Hopefully, we’ll know on both of them by the end of the month.”

Eyes wide open, the government takes notice

The importance of film production to the state’s economy has not escaped the eyes of state officials, who, during the last legislative session, approved $6.875 million in its 2007 fiscal budget to be used as incentive grants to entice producers to bring their projects to Maryland. It marked an increase of almost $3 million compared with the previous fiscal year, but it was less than Gov. Robert L. Ehrlich’s proposed $8 million.

“I don’t think it’s going to hurt us,” said Dennis Castleman, assistant secretary of tourism, film and the arts at DBED, of the amount allocated. “In the scheme of things, we’ll still be able to grow year-over-year.”

Ehrlich told The Examiner that bringing more film production into Maryland has been a major priority for his administration and that he is pleased with the progress the wage rebate program has made.

“Millions of dollars in economic impact are generated each year by the film productions that choose to come to Maryland,” Ehrlich said. “We are extremely pleased at how fast and effective this administration’s Film Wage Rebate Program has been. The Department of Business and Economic Development and the Maryland Film Office have worked tirelessly with film industry leaders to ensure this legislation would really make a difference to a production’s bottom line.”

But, while the government may recognize the importance of the filmmaking to the state’s economy, some in the industry say it isn’t doing enough and that the state is missing out on films that are going to other states that have better incentives.

“It’s not competitive, it’s not big enough and it’s not generous enough,” said Jed Dietz, director of the Maryland Film Festival. “We have two incredible film offices in the city and state, and we have all this opportunity for some really fast growth. We have all the pieces together, but we have to make sure we’re competitive on the dollars.”

Incentives rise in stature

What the state currently offers to producers is called an Employer Wage Rebate Program. Under the program, production companies can claim a rebate of 50 percent of the first $25,000 in wages paid, per employee, while filming on location in Maryland. Employees earning $1 million or more are excluded, and rebates may not exceed $2 million per project. The rebate is distributed as a grant.

To qualify, productions must spend at least $500,000 in the state, and at least 50 percent of filming must take place in Maryland. In addition, the production must have nationwide distribution. The state also waives the 5 percent sales tax on items purchased for the films.

“I think that the incentive program is a good start, however I think we need to be more aggressive,” said Hannah Byron, director of the Baltimore Film Office, a division of the Baltimore Office of Promotion and the Arts, which works with the state to bring movies to Maryland. “The incentive program needs to be more in line with our competitors. I think the program already has proven that it works, and there has been a great return on investment. The competition now is greater than ever, and, in order to stay competitive, we’ve got to invest more in that program.”

DBED’s Castleman added that incentives offered to moviemakers have become a key decision-maker when scouting locations, but it wasn’t always the case.

“For many years it was the creative folks who decided where a movie was shot based on look or a certain element of the movie,” he said. “Now the industry realizes how much economic impact they bring to a state, and it has become much more about the incentives … the accounting side is the driving factor for many movie productions.”

Castleman said that proof of how important incentive programs have become was seen in 2004, when the movie “Annapolis” was shot in Philadelphia instead of Maryland’s capital. That, he said, really drove the state government to step up its incentive program.

Impact on other industries

Though film production’s main benefactor is the state’s economy, Castleman said that it also affects other industries such as tourism and economic development. Having Maryland featured on the big screen is a “priceless impression” that the state couldn’t buy in advertising, he said.

“People still come to Maryland and want to know where ‘Runaway Bride’ was shot,” Castleman said. “And you can also equate that to economic development.

“When companies see Maryland on the big screen, we show off Maryland’s quality of life and we show off the beauty of the state.”

Nancy Hinds, a spokeswoman with the Baltimore Area Convention and Visitors Association, agreed.

“Movies have a tremendous economic boost for the city in terms of the jobs it creates, but also in terms of the exposure it gives to the city. If you’re a movie buff and you hear a movie has been shot here, you naturally want to see the location,” Hinds said.

How Maryland got its start

While furthering film production in Maryland is now a major goal for the state, it wasn’t always the case. Baltimore’s rise in the film industry is often attributed mainly to two filmmakers, John Waters and Barry Levinson. The rise was further augmented by Levinson’s long-running “Homicide” television series.

“The start was really with John Waters and Barry Levinson who started making movies right out of the box, and in doing so they have trained the crews,” Dietz said. “Now we have [crews] who really know the area and who have become film experts.”

Dietz added that having local crews that are well known in the industry has been a big plus in attracting pictures, as producers do not have to spend the extra money to bring crews in from out of state.

Meanwhile, Waters, a Baltimore native and longtime movie director, said the local industry has indeed changed since he got his start in movie directing.

“Certainly when I first started I wouldn’t exactly call the underground films I was making the ‘film industry,’ but I was doing it and all I had was the Maryland Censor Board trying to stop me,” Waters said. “Now they can’t get enough [filmmaking] in the state.”

Waters agreed, but added that for the state to continue its rise in the industry, the government needs to step up its efforts to attract producers.

“What Maryland has done so far is welcome, but the other cities and the states are way ahead of us,” Waters said. Producers “don’t care where they go. They go where they get the best incentive. … The government needs to realize we have major competition that was not there before.”

Levinson, who could not be reached for comment, said in a statement, “I think the climate for making movies in the state is becoming more and more difficult. Other states are becoming more accommodating, and I fear that this can be very detrimental.”

Film-friendly Maryland

Whether Maryland will further its presence as a filmmaking hub remains an open question, but one thing is certain: The state has solidified its reputation as a film-friendly location.

“We’re an important player in the industry,” Castleman said. “And the film industry likes being here. I continuously hear how well-respected and how major of a player the Maryland film office is in the industry.”

Maryland film and television production

TOP FOUR MONEY-MAKERS FOR THE STATE

» The Wire — HBO, 2002-06

» Ladder 49 — Disney/Touchstone, 2003-04

» The Visiting — WB/Silver Pictures, 2006

» Gods & Generals — Ted Turner Pictures, 2001

JOHN WATERS FILMS

» A Dirty Shame (Newline Cinema) 2004

» Cecil B. Demented (Artisan) 2000

» Pecker (Fine Line) 1998

» Serial Mom (Savoy) 1994

» Polyester (JunoPic) 1991

» Cry Baby (Universal) 1989

» Hairspray (New Line) 1987

» Desperate Living (Waters) 1980

» Female Trouble (New Line) 1974

» Pink Flamingos (New Line) 1972

BARRY LEVINSON FILMS AND TELEVISION

» Liberty Heights (Warner Bros.) 1999

» Homicide: Life on the Street (Baltimore Pictures/NBC-TV) 1991-98

» Avalon (Tristar) 1990

» Tin Men (Touchstone) 1987

» Diner (MGM/UA) 1982

State’s other film credits

» Step Up (Touchstone/Summit Ent.) 2006

» Rocket Science (HBO/Duly Noted Inc/Picturehouse) 2006

» Syriana (Warner Brothers) 2005

» Wedding Crashers (New Line Cinema) 2005

» Triple X: State of the Union (Revolution) 2005

» Something the Lord Made (HBO) 2004

» Swimmers 2004

» Red Dragon (Universal) 2002

» Head of State (Dreamworks) 2002

» Tuck Everlasting (Disney) 2001

» Book of Shadows: Blair Witch II (Artisan) 2000

» Young Americans (Mondalay TV) 2000

» The Replacements (Warner Bros.) 2000

» The Corner (HBO) 1999

» Random Hearts (Columbia Pictures) 1999

» Runaway Bride (Paramount) 1998

» Shot in the Heart (HBO) 1998

» The Blair Witch Project (Artisan) 1998

» Divine Trash (Trimark) 1998

» Enemy of the State (Touchstone) 1997

» Species II (Hometown/MGM) 1997

» For Richer or Poorer (Bubble Factory/Universal) 1997

» Beloved (Harpo/Touchstone) 1997

» Washington Square (Caravan/Disney) 1997

» Shadow Conspiracy (Cinergie) 1997

» Accidental Tourist (Warner Bros.) 1997

» The Curve (Blockbuster) 1997

» Absolute Power (Malpaso/Castle Rock) 1996

» Falls Road (20th Century Fox TV/NBC-TV) 1996

» Boys (Interscope) 1996

» Die Hard with a Vengeance (Cinergie/20th Century Fox) 1995

» 12 Monkeys (Atlas/Universal) 1995

» Home for the Holidays (Egg/Polygram) 1995

» Guarding Tess (Tristar) 1994

» Major League II (Morgan Creek/WB) 1994

» Silent Fall (Morgan Creek/WB) 1994

» True Lies (20th Century Fox) 1994

» Pelican Brief (Warner Bros.) 1993

» The Meteor Man (MGM) 1993

» Sleepless in Seattle (Tristar) 1993

» In the Line of Fire (Warner Bros.) 1993

» Born Yesterday (Disney) 1993

» Dave (Warner Bros.) 1992

» Distinguished Gentleman (Disney) 1992

» Patriot Games (Paramount) 1992

» That Night (Warner Bros.) 1992

» He Said, She Said (Paramount) 1991

» True Colors (Paramount) 1990

» Mosquito Coast (Warner Bros.) 1990

» Men Don’t Leave (Warner Bros.) 1989

» Her Alibi (Warner Bros.) 1989

» Clara’s Heart (Warner Bros.) 1988

» Now Way Out (Neufeld/Ziskin/Garland/Orion) 1987

» Violets are Blue (Rastar/Columiba) 1986

» The Bedroom Window (DeLaurentis) 1986

» St Elmo’s Fire (Columbia) 1985

» Space (Paramount) 1982

» Homicide (Columbia) 1980

» On the Block (Yeager) 1980

» Satisfaction (Aaron Spelling) 1980

» Broadcast News (20th Century Fox) 1988

» And Justice for All (Columbia) 1977

» Seduction of Joe Tynan (Universal) 1979

» Two for the Money (Bonner) 1972

» Best Friends (Warner Bros.) 1960

bmiller@baltimoreexaminer.com