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ENGROSSED HOUSE
BILL NO. 1362 By: Fetgatter, Stinson,
Randleman, Lawson, Baker,
Kerbs, McDugle, Strom, West
(Josh), Moore, Vancuren,
McBride, Martinez, Tedford,
Sterling, Hasenbeck,
McEntire and Roe of the
House
and
Hall of the Senate
[ revenue and taxation - incentive payments -
production expenditure amounts - effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3634, is
amended to read as follows:
Section 3634. A. The total amount of rebate payments
conditionally pre-qualified by the Department of Commerce each
fiscal year with respect to any of the incentives authorized
pursuant to this act shall not exceed Thirty Million Dollars
($30,000,000.00) Eighty Million Dollars ($80,000,000.00) . Projects
not conditionally pre-qualified for rebate payments due to the
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limitations provided in this section may be conditionally pre -
qualified by the Department in subsequent fiscal years.
B. The amount of rebate payments conditionally pre-qualified by
the Department of Commerce each fiscal year with respect to any of
the incentives authorized pursuant to this act shall not exceed :
1. Seven Million Five Hundred Thousand Dollars ( $7,500,000.00)
Five Million Dollars ($5,000,000.00) for production projects with
total expenditures of less than Seven Million Five Hundred Thousand
Dollars ($7,500,000.00) One Million Dollars ($1,000,000.00); and
2. Twenty-two Million Five Hundred Thousand Dollars
($22,500,000.00) Eighteen Million Seven Hundred Fifty Thousand
Dollars ($18,750,000.00) for production projects with total
expenditures in excess of One Mill ion Dollars ($1,000,000.00) but
not in excess of Seven Million Five Hundred Thousand Dollars
($7,500,000.00) or more; and
3. Fifty Six Million Two Hundred Fifty Thousand Dollars
($56,250,000.00) for production projects with total expenditures in
excess of Seven Million Five Hundred Thousand Dollars
($7,500,000.00).
C. A production project shall have total expen ditures of Fifty
Thousand Dollars ($50,000.00) or more to be eligible for the rebate
payments provided in this act.
D. In any fiscal year if th e amount of rebate payments
conditionally pre-qualified by the Department of Commerce are less
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than the limitations provided in this section, the excess rebate
payments not utilized shall be added to subsequent fiscal year's
limitation.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3635, is
amended to read as follows:
Section 3635. 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 this act achieve the maximum positive impact for the
Oklahoma economy and subject to the Oklahoma workforce requirements
of Section 7 3637 of this act title, the base incentive amount for a
project filmed in this state shall be a maximum of twenty percent
(20%) 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, before July 1, 2023,
shall be provided in the amount of seven and one-half percent
(7.5%).
B. In addition to the amount authorized by subsection A of this
section, and subject to the limitation prescribed by subsection C of
this section, there may be an additional incentive amount, subject
to the final approval of the Oklahoma Depar tment 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
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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 t han two hundred fifty thousand (250,000)
persons according to the federal Decennial Cens us or most recent
population estimate;
2. Two percent (2%) of the qualified product ion 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 phot ography days are filmed on location,
excluding sound stage production, in a municipality having a
population of thirteen thousand (13,000) or fewer persons according
to the federal Decennial Census or most recent population estim ate
regardless of the count y 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 photograph y days are filmed at a
qualified soundstage facility;
4. For eligible television series as defined in paragraph 4 of
Section 2 3632 of this act title:
a. two percent (2%) of the qualified producti on
expenditure amount for an eligible television episodic
pilot, and
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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 2 3632 of this act title; and
6. Three percent (3%) of the qualified production expenditure
amount based on expenditure s 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 mixin g,
b. color grading,
c. editorial work,
d. visual effects,
e. animation,
f. deliverables, excluding marketing and advertising,
g. music production, recording, mixing or composition,
h. licensing of Oklahoma music, and
i. editing equipment or editing fac ility rental.
C. Notwithstanding any other provisions of this section or the
provisions of the Filmed In Oklahoma Act of 2021 to the con trary, in
no case shall the total incentive payments authorized by this
section exceed thirty percent (30%) of the otherwise qua lified
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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 ince ntive
amounts shall not exceed thirty percent (30%).
SECTION 3. This act shall become effectiv e July 1, 2023.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and afte r its passage and approval.
Passed the House of Representatives the 9th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of _________, 2023.
Presiding Officer of the Senate