Oklahoma Administrative Code › Title 150 - Oklahoma Department of Commerce › Chapter 150 - The Oklahoma Film and Music Office › Subchapter 3 - Oklahoma Film Enhancement Rebate Program › Section 150:150-3-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
In addition to the definitions in the statute (68 O.S. §
				  3623), the following words and terms, when used in this Subchapter, shall have
				  the following meaning, unless the context clearly indicates otherwise:
"Above the Line Personnel (ATL)"
means, as
				  defined in 68 O.S. § 3623, namely individuals hired or credited on screen
				  for the Production as producers (all levels), principal cast (SAG Schedule
				  F/Run of Show or equivalent), screenwriters and the Film director(s).
"Application estimate"
means, the estimated QOE
				  submitted to OFMO 60 calendar days before the start of Principal
				  Photography.
"ATL Limitation"
means up to twenty-five percent
				  (25%) of total Qualifying Oklahoma Expenditures (QOE), see Section
				  725:35-1-4)
				  .
"Crew"
means, as defined in 68 O.S. § 3623,
				  namely persons who work on the Production who are not ATL (also known in the
				  industry as "below-the-line" personnel).
"Documented expenditures"
means, referred to in
				  68 O.S. § 3624(A), shall mean QOE as described in Section
				  725:35-1-4
				  below.
"Eligibility application"
means the application
				  of eligibility for the Program. If the application is approved by OFMO, a Film
				  is "Pre-Qualified."
"Final application"
means the package submitted
				  to OFMO documenting all requirements have been completed and the Production
				  Company is requesting payment of a Rebate Claim.
"Fiscal earmark year"
means the fiscal year to
				  which payment of potential Rebate Claims is assigned.
"High-impact production"
means a Production that
				  meets the requirements of 68 O.S. § 3623 and is so designated by the
				  Oklahoma Tourism and Recreation Department (OTRD) Executive Director.
"Loan out company"
means a legal entity (i.e.,
				  corporation, partnership or limited liability company) used by ATL and Crew to
				  contract their services to the Production.
"Loan-out limitation"
means up to twenty-five
				  percent (25%) of Salary Costs for Oklahoma-Based Crew [as found in Section
				  725:35-1-4(a)]
				  . The OTRD Executive Director may, in their discretion, specify a different
				  percentage for High Impact Productions.
"Oklahoma-based"
means a natural person that
				  files, or is legally claimed as a dependent on, an Oklahoma resident tax
				  return, or a business entity registered and in good standing as a Domestic
				  entity with the Oklahoma Secretary of State and that files an Oklahoma income
				  tax return.
"Oklahoma expatriate"
means a person who
				  previously resided for at least one year, but does not currently reside, in the
				  state of Oklahoma.
"Oklahoma loan out company"
means a Loan-Out
				  Company with an active registration to do business in the state of Oklahoma as
				  a domestic or foreign entity and that either reports payments received for the
				  Production as Oklahoma earnings for the artist on an IRS Form W-2 or is
				  considered a disregarded entity for federal income tax purposes.
"Oklahoma resident"
means a person who is a
				  resident under the Oklahoma Tax Code at the time of hire.
"Oklahoma vendor"
means a seller, renter or
				  lessor of goods or services who charges Oklahoma sales tax under an Oklahoma
				  Sales Tax Permit on taxable transactions and is either (1) Oklahoma-Based or
				  (2) a foreign business entity with an active registration to do business in
				  Oklahoma and a physical Oklahoma location for transacting business.
"Payroll burden"
means employer-paid taxes
				  (e.g., FICA, Medicare and unemployment insurance) and payroll-associated
				  payments made on a specific employee's behalf by law or collective labor
				  bargaining agreement (e.g., union dues and union fringes). Payroll Burden also
				  includes the employer-paid portion of health insurance for an employee,
				  provided such insurance was paid to an Oklahoma-Based insurance company or
				  obtained through a licensed Oklahoma insurance broker.
"Per diem"
means fixed payments made to Crew and
				  ATL in lieu of reimbursement for lodging/housing, meals and incidentals, up to
				  a maximum of the Per Diem Rate allowed for the applicable location and date in
				  the U.S. General Services Administration Per Diem Rates.
"Pre-qualified"
or
"Pre-qualification"
means the status or act of approval being
				  granted to a Production's Eligibility Application by OFMO. "Principal
				  photography" means the filming of significant components of a Film which
				  involve principal cast or, in the case of Films that do not involve live
				  actors, the beginning of substantive work on the animation or graphics that
				  form the Film's primary visual story.
"Production"
means a project to make a
				  Film.
"Production budget"
means the total budgeted
				  cost of the Production.
"Production company"
means, as defined in 68
				  O.S. § 3623, more specifically the legal entity responsible for the
				  Production. Eligibility and Final Applications will be filed by the Production
				  Company and, unless previously agreed to in writing by OFMO, payment of
				  approved Rebate Claims will be made to the Production Company.
"Proof of funding"
means demonstration in a form
				  acceptable to OFMO that a Production has or will have funding in place to cover
				  the Production's budget. Acceptable forms will be specifically approved by
				  OFMO, but could include a letter of intent from a recognized industry
				  financier, written verification of dedicated deposits in a recognized financial
				  institution or a letter of credit from an acceptable guarantor.
"Rebate"
means the percentage defined in 68 O.S.
				  § 3624 of QOE.
"Rebate claim"
means the formal request for OFMO
				  to issue a Rebate under the Program. Only one Rebate Claim shall be processed
				  per Production.
"Rebate schedule"
means a schedule of dates,
				  deadlines and submittals the Production must achieve to submit the Final
				  Application and have its Rebate Claim approved.
"Salary costs"
means those salaries and wages
				  designated as Oklahoma earnings on payroll records, along with the associated
				  Payroll Burden, Per Diem and Housing Allowance;
"Scouting expenses"
means costs incurred to
				  identify locations, Crew, facilities, services and equipment to be used in the
				  Production.
"Start of pre-production"
means the opening of
				  an Oklahoma office for the Production, or incurring QOE other than Scouting
				  Expenses, or otherwise commencing business on the Production in Oklahoma other
				  than scouting.