An Act
ENROLLED HOUSE
BILL NO. 2459 By: Hill and McDugle of the
House
and
Hall of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 3632, 3635, and 3638, which
relate to the Filmed in Okl ahoma Act of 2021;
modifying definitions; modifying incentive related to
certain post-production activity; prescribing limit
on incentive amounts; modifying provisions related to
appearance of logo in finished productions; providing
an effective date; and declaring an emergency.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3632, is
amended to read as follows:
Section 3632. As used in the Filmed in Oklahoma Act of 2021:
1. "Above-the-line personnel" means producers, principal cast,
screenwriters, and directors who work on production of films or
television series. The qualifying salary of above-the-line
personnel may be included as crew, as defined in paragraph 3 of this
section, if the salaries are paid to loan -out corporations and
limited liability companies registered to do business in this state
or the salaries are paid to Oklahoma-based above-the-line personnel.
The qualifying salary of above -the-line personnel shall not comprise
more than twenty-five percent (25%) of total expenditures as defined
in paragraph 5 of this section. For purposes of this paragraph, ENR. H. B. NO. 2459 Page 2
"Oklahoma-based" means a company or individual with an Oklahoma
income tax requirement;
2. "Apprentice" means a person who works for a skilled or
qualified person in order to learn a trade or profes sion for an
agreed-upon period of time. An apprentice may work in any of the
trades recognized by the Oklahoma Department of Commerce as
necessary for a film production. An apprentice shall be required to
complete safety training appropriate for the duti es to be performed
in connection with a qualified project and als o to complete a course
related to and with the objective of preventing wo rkplace
misbehavior, such as bullying and sexual harassment;
3. "Crew" means any person who works on preproduction,
principal photography and postproduction post-production, with the
exception of above-the-line-personnel above-the-line personnel;
4. "Eligible television series" means a project if either
seventy-five percent (75%) of the series season is filmed within the
state or, for an episodic television pilot, if more than seventy-
five percent (75%) of the pilot is filmed within the state;
5. "Expenditure" or "production cost" includes but is not
limited to:
a. wages or salaries of persons who are residents of this
state or who are enrolled as full -time students at a
college or university located in the state offering an
undergraduate degree program or who are on active
military duty and stati oned in Oklahoma or involved in
a restorative workforce program and who have earned
income from working on a film in this state including
payments to personal services corporations with
respect to the servi ces of qualified performing
artists, pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 62(a)(2),
b. the cost of construction and operations, wardrobe,
accessories and related services,
c. the cost of photography, sound synchroniza tion,
lighting and related services,
d. the cost of editing and related services,
ENR. H. B. NO. 2459 Page 3
e. rental of facilities and equipment,
f. other direct costs of producing a film, and
g. the wages and salaries of persons who are defined and
registered as an Oklahoma Expat riate by the Office of
the Oklahoma Film and Musi c Commission Office;
6. "Film" means a professional single media, multimedia program
or feature, which is not child pornography as defined i n subsection
A of Section 1024.1 of Title 21 of the Oklahoma Statutes or obscene
material as defined in paragraph 1 of sub section B of Section 1024.1
of Title 21 of the Oklahoma Statutes including, but not limited to,
national advertising messages that are broadcast on a national
affiliate or cable network, fixed on film or dig ital video, which
can be viewed or reproduced and which is exhibited in theaters,
licensed for exhibition by individual television stations, groups of
stations, networks, cable televi sion stations or other means or
licensed for home viewing markets. The term shall also include
filming for interactive an d video gaming including, but not limited
to, green screen, motion capture and similar production techniques;
7. "Multi-film deal" means a project in which a production
company films at least seventy-five percent (75%) of main crew
principal photography f or three (3) or more films in this state
within three (3) years or where the third film starts main crew
principal photography within the three (3) year period;
8. "Nonresident crew member" means a person who is not an
Oklahoma resident, hired for a quali fying production project
occurring within the state and who is subject to the payment of
Oklahoma employment taxes;
9. "Production company" means a person, producer or company who
produces film for exhib ition in theaters, on television or
elsewhere;
10. "Qualified production expenditure amount" means an
expenditure defined pursuant to paragraph 5 of this section; and
11. "Qualified soundstage facility" means a state certified
industry standard soundst age facility having not less than seven
thousand five hundred (7,500) square feet of combined soundstage
space and with a total state rental cost to the production company ENR. H. B. NO. 2459 Page 4
equal to at least one percent (1%) three percent (3%) of the
qualifying Oklahoma expenditures with respect to a production.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3635, is
amended to read as follows:
Section 3635. A. Subject to the final a pproval of the
eligibility application by the Oklahoma Department of Comm erce, a
requirement that the incentive payments made pursuant to the
provisions of this act the Filmed in Oklahoma Act of 2021 achieve
the maximum positive impact for the Oklahoma economy and subject to
the Oklahoma workforce requirements of Secti on 7 3637 of this act
title, the base incentive amount for a project filmed in this state,
not including above-the-line personnel, shall be a maximum of twenty
thirty percent (20%) (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,
before July 1, 2023, 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, sub ject 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 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 p hotography days are filmed o n location,
excluding sound stage production, in a municipality having a
population of thirteen thousand (13,000) twenty-five thousand
(25,000) or fewer persons according to the federal Federal Decennial
Census or most recent po pulation estimate regardless of the county
in which the municipality is located or partially located;
ENR. H. B. NO. 2459 Page 5
3. Five percent (5%) of the qualified production expenditure
amount for soundstage expenditures if at least twenty-five percent
(25%) of main crew princi pal photography 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 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 2 3632 of this act title; and
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 expend itures. 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, ENR. H. B. NO. 2459 Page 6
g. music production, recording, mixing or composition,
h. licensing of Oklahoma music, and
i. 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 t his 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 oth erwise qualified
production expenditure amount. The incenti ve 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 in centive
amounts shall not exceed thirty percent (30 %).
SECTION 3. AMENDATORY 68 O.S. 2021, Section 3638, is
amended to read as fo llows:
Section 3638. All production projects for which any incentive
is paid pursuant to the provisions of this act the Filmed in
Oklahoma Act of 2021 shall contain a logo, as approved by the
Oklahoma Department of Commerce, to be displayed in the end credits
of the finished production for a period of at least five (5) seconds
or, if the production does not contain end credits, the Oklahoma
Department of Commerce shall obtain a commitment by the productio n
company to provide equivalent value as determined by the Oklahoma
Department of Commerce.
SECTION 4. Sections 1 and 3 of this act shall become effective
July 1, 2023.
SECTION 5. It being immediately necessary for the pre servation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereo f this act shall take effect and
be in full force from and after its passage and approval.
ENR. H. B. NO. 2459 Page 7
Passed the House of Representatives the 24th day of May, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of May, 2023.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of t he Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of _______________ ____, 20_______, at ____ ___ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock ____ ___ M.
By: _________________________________