14
Search AOL Mail
AOL Mail
Video
Video
AOL Favorites
Favorites
Menu

'House of Cards' wants tax breaks from MD or the hit show is hitting the road

'House Of Cards' Threatens To Leave Md. Over Tax Credits
It seems Frank Underwood isn't the only ruthless one on the "House of Cards" set.
The show's production company sent Maryland Gov. Martin O'Malley a letter urging lawmakers to increase the tax credits available for production in the state, or else it will "break down our stage, sets and offices and set up in another state."
In the past few years, Maryland has handed out more than $40 million in tax breaks to movie and television production companies that filmed in the state - the vast majority of that went to the Netflix show.
According to The Washington Post, Maryland reimbursed the company with $11 million for season one, and that number could reach $15 million for season two.
Producers want at least another $15 million for season three and have even pushed back filming to see if Maryland officials will comply. There are currently two bills in committee that would increase the state's annual tax credit budget.
State officials say the show has created nearly 6,000 jobs and generated more than $250 million for the state economy.
Lawmakers are divided on whether to continue giving away so much tax revenue, with some arguing it's not fiscally responsible.
And they could be right. According to the Tax Foundation, a 2005 study found states recoup just 16-18 percent of their tax breaks. That means states are missing out on more than 80 percent of every dollar they offer in incentives.
It also notes the majority of the jobs production creates go to out-of-state residents. Even if they do go to locals, they're usually relatively short-term.
The District of Columbia doesn't actually offer tax credits, so even shows about the capital city are often filmed elsewhere - both "Cards" and HBO political comedy "Veep" are filmed in Baltimore and other parts of Maryland.
Filming for "House of Cards" season three has been pushed back to June. The entire first and second seasons are currently available on Netflix.

Join the discussion

1000|Characters 1000  Characters
Mac February 22 2014 at 10:34 AM

I owned a construction company for 35 years and never got a tax break from anyone. Why should anyone else get a break just because they did work there ?

Flag Reply +6 rate up
ken February 22 2014 at 1:52 PM

They can leave, and the state will no longer have to provide the state services that the company benefits from- the electrical systems, roads, water and sewer, etc. There isn't a single company in the US that doesn't receive government services for themselves and their employees.

When they leave tell them they can't drive out on state roads.

Flag Reply +2 rate up
johnpegwharton February 22 2014 at 12:25 PM

Yahoo. Please do something with your news program that will encourage me to drop AOL and this Huffington Post crap.

Flag Reply +1 rate up
pkkbh February 22 2014 at 9:50 AM

Then they need to hit the road.

Flag Reply +5 rate up
cray542464 February 22 2014 at 10:14 AM

They don't want to pay "their fair share"?

Flag Reply +2 rate up
1 reply
Dan Watson cray542464 February 22 2014 at 10:25 AM

Yes, they are in a Democrat controlled and run state, and we all know that Dems never pay their fair share.

Flag Reply +2 rate up
1 reply
lken06880 Dan Watson February 22 2014 at 11:24 AM

Fool, how about big business paying, through lobbying, for corporate tax relief so the companies like GE and big oil pay little or no taxes on huge profits, GE makes billions in profits and pays little or no taxes, the republicans are the friends (bought and paid for friends) of business, not democrats. You must be a believer of Goebbels who said that if you tell a big enough lie for long enough it will be seen as the truth.

Flag +1 rate up
Kevin Caldwell February 22 2014 at 12:08 PM

Tell them to hit the road. But my question is, Maryland’s current cap is $7.5 million. How did MRC get tax credits above the cap not just once but twice.

Flag Reply +2 rate up
marathonsd February 22 2014 at 12:00 PM

The hell with them; let them go to another state and save the taxpayers money overall. Why are politicians so stupid to let them be held hostage to an industry that just takes and gives nothing in return?

Flag Reply +2 rate up
kmx888 February 22 2014 at 10:41 AM

This all started when the state of CA put such a choke hold on business that other states realized they could lure production companies out of state with incentives. This was coupled with CA drastically reducing theirs. The net result is that CA has lost 65% of the production and other states have flourished.
As to whether or not it is a good idea, I will leave that to others

Flag Reply +1 rate up
qnznycn February 22 2014 at 10:42 AM

let then hit the road
blackmail

Flag Reply +4 rate up
rspolo February 22 2014 at 9:15 AM

Give them whatever they want in a multi year deal and then send every inspector the state has after them and make it back double in violations...

Flag Reply +1 rate up
aol~~ 1209600

Voting...

More From Our Partners