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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2110 By: Osburn
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 3621, 3622, 3623, as amended by
Section 43, Chapter 59, O.S.L. 2 024, 3624, as amended
by Section 47, Chapter 228, O.S.L. 2022, 3625 and
3626 (68 O.S. Supp. 2024, Sections 3623 and 3624),
which relate to the Compete with Canada Film Act;
modifying short title; modifying legislative
findings; modifying definitions; modif ying provisions
related to incentive payments; modifying references;
modifying provisions related to revolving fund; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3621, is
amended to read as follows:
Section 3621. This act shall be known and may be cited as the
"Compete with Canada Film Act " "Oklahoma is Bringing Sitcoms Home
from Hollywood Act".
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3622, is
amended to read as follows:
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Section 3622. The Legislature hereby finds that the production
of films live audience episodic television in Oklahoma not only
provides jobs for Oklahomans and dollars for Oklahoma busi nesses,
but also enhances the state 's image nationwide with a focus on
family friendly content targeting Middle America . Recognizing The
Legislature also finds that the high costs of film production are
driving motion picture and television production out of the country,
most notably to Canada, and that the film entertainment industry is
always seeking attractive locations that can help cut the costs of
production, the Legislature further finds that the State of
Oklahoma, with the appropriate incentive, ca n become an attractive
site for film live audience episodic television production and that
Oklahoma is presently among several states with minimal incentives
to attract the film industry . It is therefore the intent of the
Legislature that Oklahoma provide an the first incentive that will
stand out among those of other states and in crease film specifically
for live audience episodic television production in this state ,
carving out a niche in the industry that Oklahoma can be known for .
SECTION 3. AMENDATORY 68 O.S. 2021, Section 3623, as
amended by Section 43, Chapter 59, O.S.L. 2024 (68 O.S. Supp. 2024,
Section 3623), is amended to read as follows:
Section 3623. As used in the Compete with Canada Film Act
Oklahoma is Bringing Sitcoms Home from Hollywood Act:
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1. "Crew" means any person who works on preprodu ction,
principal photography, and postproduction, with the exception of
producers, principal cast, screenwriters, and the director. The
qualifying salary of producers, principal cast, screenwriters, and
the director, also known as "above-the-line personnel", may be
included as crew if the salaries are paid to loan -out corporations
and limited liability companies registered to do business in the
State of Oklahoma or the salaries a re 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 2 3 of this section. For
purposes of this paragraph , "Oklahoma-based" means a company or
individual with an Oklahoma income tax requirement;
2. "Live audience episodic television" means episodic
television filmed in front of a live audience intended for broadcast
on network television, cable and streaming platforms. The audience
should consist of a minimum of fifty (50) people;
3. "Expenditure" or "production cost" includes but is not
limited to:
a. wages or salaries of persons who are residents of this
state and who have earned income from working on a
film live audience episodic television in this state
including payments to personal services corporations
with respect to the services of qualified performing
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artists, as determined under Section 62(a)(A) of the
Internal Revenue Code,
b. the cost of construction and operations, wardrobe,
accessories and related services,
c. the cost of photography, sound synchronization,
lighting and related services,
d. the cost of editing and related services,
e. rental of facilities and equipment,
f. other direct costs o f producing a film live audience
episodic television, and
g. the wages and salaries of persons who are defined and
registered as an Oklahoma Expatriate by the Office of
the Oklahoma Film and Music Office within the Oklahoma
Department of Commerce Commission;
3. "Film" means a professional single media, multimedia program
or feature
4. "Live audience episodic series " means an episodic television
series that is filmed in front of a live audience , which is not
child sexual abuse material as defined in subsec tion A of Section
1024.1 of Title 21 of the Oklahoma Statutes or obscene material as
defined in paragraph 1 of subsection B of Section 1024.1 of Title 21
of the Oklahoma Statutes including, but not limited to, national
advertising messages that are broadca st on a national affiliate or
cable network, fixed on film or digital video, w hich can live
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audience episodic series to be viewed or reproduced and which is
exhibited in theaters, licensed for exhibition by individual
television stations, groups of station s, networks, cable television
stations or other means or licensed for home viewing markets;
4. "High impact production" means a production for which total
expenditures or production costs are equal to or greater than Fifty
Million Dollars ($50,000,000.00) , with at least one-third (1/3) of
total costs deemed Oklahoma expenditures by the Oklahoma Film and
Music Office; and
5. "Production company" means a person or company who produces
film live audience episodic series for exhibition in theaters,
television or elsewhere on individual television stations, groups of
stations, networks, cable television stations or other means or
licensed for home viewing markets .
SECTION 4. AMENDATORY 68 O.S. 2021, Section 3624, as
amended by Section 47, Chapter 228, O.S.L. 2022 (68 O.S. Supp. 2024,
Section 3624), is amended to read as follows:
Section 3624. A. There is hereby created the Oklahoma Film
Enhancement is Bringing Sitcoms Home from Hollywood Rebate Program.
A rebate in the amount of up t o seventeen percent (17%) of
documented expenditures made in Oklahoma directly attributable to
the production of a film, live audience episodic series for
television production , or television commercial, as defined in
Section 3623 of this title, in this st ate, may be paid to the
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production company responsible for the live audience 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 sectio n. Provided, for documented
expenditures made after July 1, 2025, the rebate amount shall be
thirty percent (30%).
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 Office of
the Oklahoma Film and Music Office within the Oklahoma Department of
Commerce Commission and the Oklahoma Tax Commission, as provided in
the Compete with Canada Fil m Oklahoma is Bringing Sitcoms Home from
Hollywood Act.
D. C. To be eligible for a rebate payment:
1. The production company responsible for a film, television
production, or television commercial , live audience episodic series
as defined in Section 3623 of this title, made in this state shall
submit documentation to the Office of the Oklahoma Film and Music
Office Commission of the amount of wages paid for employment in this
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state to residents of this state directly relating to the production
and the amount of other expenditure or production costs cost
incurred in this state direc tly 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 pr oductions, 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 Ok lahoma crew and local vendors have been paid and
there are no liens against th e production company pending in the
state;
4. The minimum budget for the film live audience episodic
series 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 Two Hundred Thousand Dollars ($200,000.00)
per episode;
5. 4. The production company shall provide evidence of
financing for production prior to the commencement of principal
photography; and
6. 5. 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
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policy pursuant to state law, which shall include cove rage of
employer's liability.
E. D. 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 this act and an exemption from sales taxes
pursuant to the provisions of parag raph 23 of Section 1357 of this
title. If a production company has received s uch an exemption from
sales taxes and submits a claim for rebate pursuant to the
provisions of the Compete with Canada Film Act Oklahoma is Bringing
Sitcoms Home from Hollywood Act, the company shall be required to
fully repay the amount of the exemption to the Oklahoma Tax
Commission. A claim for a rebate shall include documentation from
the Oklahoma 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. E. The Office of the Film and Music Commission shall approve
or disapprove all claims for rebate and shall notify the Oklahoma
Tax Commission. The Oklahoma 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 is
Bringing Sitcoms Home from Hollywood Rebate Program Revolving Fund
created in Section 36 25 of this title. Excluding any rebate
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payments to high impact productions as provided for in subsection G
of this section, the The amount of claims prequalified and approved
by the Office for payments in any single fiscal year shall not
exceed Eight Million Dollars ($8,000,000.00) Ten Million Dollars
($10,000,000.00). If the amount of approved claims exceeds the
amount specified in this subsection in a fiscal year, payments sha ll
be made in the order in which the claims are approved by the Office
of the Oklahoma Film and Music Commission . 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 Ok lahoma Film and Music Office issues a
conditional prequalification for a produ ction, 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 approv ed 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
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subject to the Eight Mi llion 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.
SECTION 5. AMENDATORY 68 O.S. 2021, Section 3625, is
amended to read as follows:
Section 3625. A. There is hereby creat ed in the State Treasury
a revolving fund for the Oklahoma Tax Commission to be designated
the "Oklahoma Film Enhancement Rebate Program is Bringing Sitcoms
Home from Hollywood Revolving Fund". The fund shall be a continuing
fund, not subject to fiscal ye ar limitations, and shall consist of
all monies received by the Oklahoma Tax Commission which are
specifically required by law to be deposited in the fund, any public
or private donations, contributions, and gifts received for the
benefit of the fund and a ny amounts appropriated by the Oklahoma
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Legislature. All monies accruing to the credit of the fund are
hereby appropriated and may be budgeted and expended by the Tax
Commission for the purpose of paying rebates as provided in this
act. Expenditures from the fund shall be made upon warrants issued
by the State Treasurer against cl aims filed as prescribed by law
with the Director of the Office of Management and Enterprise
Services for approval and payment.
B. The Oklahoma Tax Commission shall apportion, f rom the
revenues which would otherwise be apportioned to the General Revenue
Fund pursuant to subparagraph a of paragraph 1 of Section 2352 of
this title, an amount that the Commission estimates to be necessary
to pay the rebates provided by Section 3624 o f this title to the
Oklahoma Film Enhancement Rebate Program is Bringing Sitcoms Home
from Hollywood Revolving Fund.
SECTION 6. AMENDATORY 68 O.S. 2021, Section 3626, is
amended to read as follows:
Section 3626. The provisions of the Compete with Canada Film
Act Oklahoma is Bringing Sitcoms Home from Hollywood Act shall be
terminated effective July 1, 2027 2032, and no claim shall be paid
thereafter.
SECTION 7. This act shall become effective November 1, 2025.
60-1-12198 MAH 01/16/25