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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1970 By: Williams
AS INTRODUCED
An Act relating to revenue and taxation; amending
68 O.S. 2021, Section 3635, as last amended by
Section 159, Chapter 452, O.S.L. 202 4 (68 O.S. Supp.
2024, Section 3635), which relates to incentive
amounts; providing incentive based on certain
financial services; providing incentive based upon
certain content; providing an effective date; and
declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3635, as
last amended by Section 159, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
2024, 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 the Filmed in Oklahoma Act of 2021 achieve the maximum
positive impact for the Oklahoma economy and subject to the Oklahoma
workforce requiremen ts of Section 3637 of this title, the base
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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 pai d before April 1,
2023, and twenty percent (20%) for wages paid on or after Ap ril 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 product ion expenditure
amount for projects whose hub location, as determined by the
Department, is for projects where at least twenty -five percent (25%)
of main crew principal photography days are filmed on location,
excluding sound stage production, in a municip ality having a
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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 para graph 4 of
Section 3632 of this title:
a. two percent (2%) of the qualified pr oduction
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
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7. Three percent (3%) of the qualified production expenditure
amount based on expenditures paid to Oklah oma 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 includi ng Foley artist
processes or services, and
j. graphics, including but not limited to the GFX system ;
8. Two percent (2%) of the qualified production expenditure
amount for projects which obtain commercial banking services for the
duration of the project f rom any bank authorized and chartered by
the laws of this state to engage in t he banking business; and
9. Five percent (5%) of the qualified production expenditure
amount for projects whose content is faith -based or which promotes
core family values.
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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%).
SECTION 2. This act shall become effective July 1, 2025.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-10874 MAH 01/15/24