2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-3635v2. Incentive amounts – Projects filmed in state.

A. Subject to the final approval of the eligibility application by the Oklahoma Department of Commerce, a requirement that the incentive payments made pursuant to the provisions of the Filmed in Oklahoma Act of 2021 achieve the maximum positive impact for the Oklahoma economy and subject to the Oklahoma workforce requirements of Section 3637 of this title, the base incentive amount for a project filmed in this state, not including above-the-line personnel, shall be a maximum of thirty percent (30%) of the qualified production expenditure amount. An incentive for a project filmed in this state for wages paid to nonresident crew, not including above-the-line personnel, shall be provided in the amount of seven and one-half percent (7.5%) for wages paid before April 1, 2023, and twenty percent (20%) for wages paid on or after April 1, 2023.
B. In addition to the amount authorized by subsection A of this section, there may be an additional incentive amount, subject to the final approval of the Oklahoma Department of Commerce, in the maximum amount of:
1. Three percent (3%) of the qualified production expenditure amount for projects where at least twenty-five percent (25%) of main crew principal photography days are filmed on location, excluding sound stage production, in any county of this state if the county has a population of less than two hundred fifty thousand (250,000) persons according to the Federal Decennial Census or most recent population estimate;
2. Two percent (2%) of the qualified production expenditure amount for projects whose hub location, as determined by the Department, is or projects where at least twenty-five percent (25%) of main crew principal photography days are filmed on location, excluding sound stage production, in a municipality having a population of twenty-five thousand (25,000) or fewer persons according to the Federal Decennial Census or most recent population estimate regardless of the county in which the municipality is located or partially located;
3. Five percent (5%) of the qualified production expenditure amount for soundstage expenditures if at least twenty-five percent (25%) of main crew principal photography days are filmed at a qualified soundstage facility;
4. For eligible television series as defined in paragraph 4 of Section 3632 of this title:
a.
two percent (2%) of the qualified production expenditure amount for an eligible television episodic pilot, and
b.
five percent (5%) of the qualified production expenditure amount if a television series is filmed for one or more seasons;
5. Five percent (5%) of the qualified production expenditure amount for an eligible multi-film deal as defined in paragraph 7 of Section 3632 of this title;
6. On or after July 1, 2023, two percent (2%) of the qualified production expenditure amount for the post-production expenses of:
a.
music production, recording, mixing, or composition, or
b.
licensing of Oklahoma music; and
7. Three percent (3%) of the qualified production expenditure amount based on expenditures paid to Oklahoma vendors for post-production expenses with a minimum expenditure of three percent (3%) of Oklahoma production expenditures. Post-production expenditures include but are not limited to the following categories:
a.
sound recording or mixing,
b.
color grading,
c.
editorial work,
d.
visual effects,
e.
animation,
f.
deliverables, excluding marketing and advertising,
g.
editing equipment or editing facility rental,
h.
color grading or digital intermediate processing,
i.
audio post-production processes including Foley artist processes or services, and
j.
graphics, including but not limited to the GFX system.
C. Notwithstanding any other provisions of this section or the provisions of the Filmed in Oklahoma Act of 2021 to the contrary, in no case shall the total incentive payments authorized by this section exceed thirty percent (30%) of the otherwise qualified production expenditure amount. The incentive payment amount prescribed by subsection A of this section may be used in any combination with the additional incentive amounts authorized by subsection B of this section, but the combination of the incentive amounts shall not exceed thirty percent (30%).
Added by Laws 2021, c. 516, § 5, eff. July 1, 2021. Amended by Laws 2023, c. 347, § 2, emerg. eff. June 7, 2023.
NOTE: Laws 2021, c. 516, § 15 states that the provisions of this act shall be contingent upon the enactment of the provisions of House Bill No. 2946 (c. 512) of the 1st Regular Session of the 58th Oklahoma Legislature. House Bill No. 2946 was approved by the Governor on May 24, 2021.