'House of Cards' Production to Remain in Maryland

"House of Cards"

Producers sought $15 million in tax incentives for the third season but will now get $11.5 million under a compromise reached during negotiations led by the state's governor.

The producer of the Netflix series House of Cards, Media Rights Capital, has reached an agreement with the state of Maryland to keep the Kevin Spacey series in the state.

News broke Friday in a blog post by Gov. Martin O'Malley, who has been a strong supporter of efforts to keep the series shooting in Maryland. The governor is in his final days in office as the head of the state due to term limits.

The hitch had been that Media Rights Capital said it needed a $15 million rebate for season three and the state had to ante up more money for its tax credit incentive program. The show received $26 million in tax credits in its first two seasons.

Legislation passed in Maryland to raise the amount and limit on what one could receive but then was scuttled in a conference committee during the final hours of the recently ended legislative session.

Now a deal has been reached, and House of Cards will receive a total of $11.5 million in 2014 through a combination of both the tax incentive program and an additional $7.5 million in grants authorized to be taken from the 2015 fiscal year budget.

"Spoiler alert: We're going to keep the 3,700 jobs and more than 100 million dollars of economic activity and investment that House of Cards generates right here in Maryland," O'Malley said on his blog. "Media Rights Capital has been a great supporter of the people and entertainment community in Maryland, and we couldn't be happier to continue our partnership."

"House of Cards is the gift that keeps on giving, having injected hundreds of millions of dollars into the local economy while also helping to provide thousands of jobs to our Maryland community," said Asif Satchu, co-CEO of MRC. "We are very grateful to both Gov. O'Malley for his tireless efforts to help keep jobs in Maryland and the leadership of the general assembly for their continued advocacy and support."

Production, which had been delayed, is now scheduled to resume this summer. Even as the talks were underway, according to a source, work had been ongoing to construct sets and prepare for production.