2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-3624. Oklahoma Film Enhancement Rebate Program.

A. There is hereby created the Oklahoma Film Enhancement Rebate Program. A rebate in the amount of up to seventeen percent (17%) of documented expenditures made in Oklahoma directly attributable to the production of a film, television production, or television commercial, as defined in Section 3623 of this title, in this state, may be paid to the production company responsible for the production. Provided, for documented expenditures made after July 1, 2009, the rebate amount shall be thirty-five percent (35%), except as provided in subsection B of this section.
B. The amount of rebate paid to the production company as provided for in subsection A of this section shall be increased by an additional two percent (2%) of documented expenditures if a production company spends at least Twenty Thousand Dollars ($20,000.00) for the use of music created by an Oklahoma resident that is recorded in Oklahoma or for the cost of recording songs or music in Oklahoma for use in the production.
C. The rebate program shall be administered by the Oklahoma Film and Music Office within the Oklahoma Department of Commerce and the Oklahoma Tax Commission, as provided in the Compete with Canada Film Act.
D. To be eligible for a rebate payment:
1. The production company responsible for a film, television production, or television commercial, as defined in Section 3623 of this title, made in this state shall submit documentation to the Oklahoma Film and Music Office of the amount of wages paid for employment in this state to residents of this state directly relating to the production and the amount of other production costs incurred in this state directly relating to the production;
2. The production company has filed or will file any Oklahoma tax return or tax document which may be required by law;
3. Except major studio productions, the production company shall provide the name of the completion guarantor and a copy of the bond guaranteeing the completion of the project or if a film has not secured a completion bond, the production company shall provide evidence that all Oklahoma crew and local vendors have been paid and there are no liens against the production company pending in the state;
4. The minimum budget for the film shall be Fifty Thousand Dollars ($50,000.00) of which not less than Twenty-five Thousand Dollars ($25,000.00) shall be expended in this state;
5. The production company shall provide evidence of financing for production prior to the commencement of principal photography; and
6. The production company shall provide evidence of a certificate of general liability insurance with a minimum coverage of One Million Dollars ($1,000,000.00) and a workers' compensation policy pursuant to state law, which shall include coverage of employer's liability.
E. A production company shall not be eligible to receive both a rebate payment pursuant to the provisions of Section 3621 et seq. of this title and an exemption from sales taxes pursuant to the provisions of paragraph 23 of Section 1357 of this title. If a production company has received such an exemption from sales taxes and submits a claim for rebate pursuant to the provisions of the Compete with Canada Film Act, the company shall be required to fully repay the amount of the exemption to the Tax Commission. A claim for a rebate shall include documentation from the Tax Commission that repayment has been made as required herein or shall include an affidavit from the production company that the company has not received an exemption from sales taxes pursuant to the provisions of paragraph 21 of Section 1357 of this title.
F. The Office shall approve or disapprove all claims for rebate and shall notify the Tax Commission. The Tax Commission shall, upon notification of approval from the Oklahoma Film and Music Office, issue payment for all approved claims from funds in the Oklahoma Film Enhancement Rebate Program Revolving Fund created in Section 3625 of this title. Excluding any rebate payments to high impact productions as provided for in subsection G of this section, the amount of claims prequalified and approved by the Office for any single fiscal year shall not exceed Eight Million Dollars ($8,000,000.00). If the amount of approved claims exceeds the amount specified in this subsection in a fiscal year, payments shall be made in the order in which the claims are approved by the Office. If an approved claim is not paid in whole or in part, the unpaid claim or unpaid portion may be paid in the following fiscal year subject to the limitations specified in this subsection. The liability of the State of Oklahoma to make incentive payments pursuant to this act shall be limited to the balance of the Oklahoma Film Enhancement Rebate Program Revolving Fund.
G. 1. At the time the Oklahoma Film and Music Office issues a conditional prequalification for a production, such prequalification may include a proposed designation as a high impact production, as defined in Section 3623 of this title.
2. The proposed designation must be approved by the Cabinet Secretary for Commerce.
3. If the high impact production otherwise meets all of the requirements of the Compete with Canada Act and the Office gives final approval to rebate claims, such rebate claims shall not be subject to the Eight Million Dollar ($8,000,000.00) cap provided for in subsection F of this section.
4. The payment of a rebate claim approved by the Office for a production designated as a high impact production by the Cabinet Secretary may be made as follows:
a.
by special appropriation to the Oklahoma Film Enhancement Rebate Program Revolving Fund, if the claim is approved during a regular or special session of the Oklahoma Legislature, or
b.
by payment from the Oklahoma Quick Action Closing Fund pursuant to Section 48.2 of Title 62 of the Oklahoma Statutes, if the claim is approved when the Oklahoma Legislature is not in session.
Added by Laws 2001, c. 259, § 4, eff. July 1, 2001. Amended by Laws 2002, c. 203, § 2, eff. July 1, 2002; Laws 2005, c. 381, § 15, eff. July 1, 2005; Laws 2006, c. 29, § 2, eff. July 1, 2006; Laws 2007, c. 341, § 2; Laws 2008, c. 436, § 15, eff. July 1, 2009; Laws 2009, c. 426, § 14, eff. July 1, 2009; Laws 2017, c. 121, § 1, eff. July 1, 2017; Laws 2019, c. 313, § 3, eff. July 1, 2019; Laws 2021, c. 15, § 13, eff. Nov. 1, 2021; Laws 2022, c. 228, § 47, emerg. eff. May 5, 2022.
NOTE: Laws 2021, c. 312, § 3 repealed by Laws 2022, c. 228, § 48, emerg. eff. May 5, 2022.