Oklahoma Film Industry Tax Incentives: Boosting Production and Growth

Written By Sebastian Sauerborn

The Oklahoma film industry has experienced significant growth in recent years, thanks in part to the state's competitive tax incentives. These incentives, aimed at attracting both major motion picture productions and independent films, have offered numerous benefits to the local economy, including job creation, increased tourism, and boosts to related businesses.

Oklahoma's film industry tax incentives comprise of a variety of elements, such as rebates, tax credits, and exemptions, making it an attractive destination for filmmakers. The Oklahoma Film Enhancement Rebate Program, for instance, offers a cash rebate of up to 37% on qualifying expenditures in the state. Additionally, the program is accessible to a wide range of projects, including feature films, television series, commercials, and music videos, thus ensuring that diverse productions have the opportunity to benefit from the incentives.

As a result of these alluring tax incentives, the city has become a hub for film production OK, drawing the attention of producers and directors from across the country and around the globe. With a growing list of successful productions under its belt, the state's film industry continues to flourish, positioning Oklahoma as a key player in the competitive landscape of film production.

Overview of Oklahoma Film Industry Tax Incentives

Oklahoma offers enticing tax incentives to stimulate growth in its film industry. These incentives are designed to attract filmmakers and video production companies OKC, benefiting both the local economy and the creative community.

The Oklahoma Film Enhancement Rebate Program provides a cash rebate of up to 37% on qualifying expenditures within the state. This rebate is available to films, television shows, and commercials with a minimum budget of $50,000 and at least $25,000 in-state spending. The rebate program is subject to a yearly cap, ensuring the fiscal integrity of the state.

In addition to the cash rebate, Oklahoma extends a 4% tax exemption on sales of tangible property or services used in film production OKC. This exemption covers various production-related expenses, such as set construction, wardrobe, equipment rental, and other costs necessary for a successful project.

Another incentive Oklahoma offers is using public properties for filming purposes, often at no cost. Filmmakers can take advantage of the diverse landscapes and unique architecture found in state-owned parks, buildings, and historical sites.

These tax incentives make Oklahoma an attractive location for film production, help create jobs and contribute to local economic growth.

Eligibility Criteria

Qualified Expenses

In order for a film project to be eligible for Oklahoma's film industry tax incentives, specific production expenses must fall within the category of qualified expenses. These include, but are not limited to:

  • Pre-production costs

  • Production wages and salaries, including related benefits

  • Post-production costs

  • Equipment rental

  • Location fees

  • Set construction and operations

  • Wardrobe, props, and related consumable items

It is important to note that not all expenses qualify for the tax incentives; for instance, marketing and distribution-related costs are excluded.

Budget Thresholds

Budget thresholds play an important role in determining eligibility for Oklahoma's film tax incentives. The minimum budget requirement for a project to qualify is $50,000. Additionally, applicants must spend at least $25,000 on qualified expenses within the state. However, different tax incentives may have varying budget requirements, so it is crucial to review specific guidelines for each program.

Residency Requirements

Oklahoma places emphasis on supporting local talent and businesses. To further encourage this, they have established residency requirements for film projects seeking tax incentives. A percentage of the overall crew, including the director, producer, and leading actors, must be Oklahoma residents. Additionally, substantial use of local goods, services, and resources as part of the production process is highly encouraged.

Meeting the eligibility criteria is vital for receiving the tax incentives that can have a significant impact on a film project's budget and overall success within the Oklahoma film industry.

Incentive Programs

Oklahoma Film Enhancement Rebate Program

The Oklahoma Film Enhancement Rebate Program offers a cash rebate of up to 37% on qualifying production expenditures within the state. This program aims to encourage film and television production in Oklahoma, benefiting local businesses and promoting the state's diverse locations.

Eligible projects must have a minimum budget of $50,000 and spend at least $25,000 in Oklahoma. The rebate cap is set at $8 million per fiscal year, with a per-project cap at $4 million.

Oklahoma Film and Music Office Point of Contact

The Oklahoma Film and Music Office (OFMO) serves as the primary point of contact for film and music projects in the state. Working closely with the industry, OFMO provides guidance on tax incentives, locations scouting, and other essential resources for film and music productions.

You can reach the Oklahoma Film and Music Office at:

By efficiently using these incentive programs and working closely with the Oklahoma Film and Music Office, film productions can benefit from the available resources and support, contributing to the growth of Oklahoma's film industry.

Impact of Tax Incentives

Economic Development

The Oklahoma film industry tax incentives have positively influenced economic development in the state. By offering financial incentives for film production, the state has attracted numerous projects that inject capital into local economies. This increase in film production activity has led to a surge in demand for goods and services from various businesses, such as equipment rentals, catering, and accommodations, benefiting both large and small enterprises.

Job Creation

In turn, this growth in demand for goods and services has generated job creation in the state. As film productions set up shop in Oklahoma, they need to employ both local and out-of-state crew members. From technical roles such as electricians and carpenters, to creative positions like makeup artists and costume designers, these productions create employment opportunities across various skill sets. Furthermore, the rise in film activity has opened up doors for support roles, including the need for location scouts, security, and transportation services.

Film Production Growth

Through the tax incentives, Oklahoma has experienced a marked growth in the number of film productions taking place within its borders. By offering attractive financial incentives, the region has become a more appealing choice for producers scouting locations, ultimately boosting the overall profile of the state as a desirable destination for film projects. This increase in film production can pave the way for long-term benefits, such as the development of a skilled workforce and a robust film infrastructure that further solidifies the state's place in the industry.

Comparisons with Other States

Texas

In comparison to Oklahoma, Texas has an established film industry with the Texas Film Commission providing competitive incentives to filmmakers. The Texas Moving Image Industry Incentive Program (TMIIIP) offers a rebate of up to 22.5% on qualified in-state spending. Texas requires a minimum spend of $250,000 for film projects, while Oklahoma has only a $50,000 minimum. However, Oklahoma's film incentive program offers a higher rebate percentage of up to 37%, making it more attractive for budget-conscious producers.

New Mexico

New Mexico has gained prominence in the film industry with popular productions such as Breaking Bad and Better Call Saul. Under the New Mexico Film Incentive Tax Credit, eligible productions can receive a 25-30% tax credit on direct production costs incurred in the state. With a minimum spend of $50,000, the requirement is similar to Oklahoma's. In addition to the tax credit, New Mexico offers a Film Investment Loan Program, providing interest-free loans to filmmakers for up to $15 million or 30% of their production budget. Although Oklahoma provides a higher rebate percentage, New Mexico's loan program offers a unique advantage.

Louisiana

Louisiana has been recognized as the "Hollywood South" due to its flourishing film and TV production industry. The state's tax incentives were revised in 2017 and now consist of a tax credit equal to 25-40% of total in-state production expenditures. Productions must spend a minimum of $300,000 to qualify for the tax credit. While Louisiana offers a high tax credit percentage, the minimum spend requirement is significantly higher than Oklahoma's.

Success Stories of Oklahoma Film Industry

Movies and TV Shows

The Oklahoma film industry has seen a growth in recent years, thanks in part to the state's attractive tax incentives for film production. Some of the notable movies that have had successful production experiences in Oklahoma include:

  • "I Can Only Imagine" (2018): This faith-based drama has been a hit among audiences worldwide, generating over $83 million at the box office.

  • "Minari" (2020): A critically-acclaimed drama portraying the experiences of a Korean-American family living in rural Arkansas, which was primarily filmed in Tulsa.

  • "Stillwater" (2021): Starring Matt Damon, this movie shot various scenes in and around Stillwater, Oklahoma, showcasing the local landscape.

In addition to movies, Oklahoma has also been home to some popular TV show productions, such as the upcoming series "Reservation Dogs", which will be set and filmed entirely in Oklahoma, highlighting the state's rich Native American culture.

Economic Benefits

The Oklahoma film industry tax incentives have also brought significant economic benefits to the state. A few key statistics include:

  • Between 2015 and 2020, the incentives generated an estimated $161.6 million in direct spending within Oklahoma.

  • The average film production in the state creates more than $1 million in economic activity.

  • In 2020 alone, the Oklahoma film industry supported over 10,000 local jobs.

These figures demonstrate the positive impact of the tax incentives on both the local economy and the state's growing reputation as a film production hub. The success stories of Oklahoma's film industry continue to attract more filmmakers, further expanding the industry in this state.

Conclusion

Oklahoma's film industry tax incentives have played a significant role in attracting productions to the state. By offering competitive financial benefits, the state has been successful in drawing a variety of film projects, ultimately boosting the local economy and creating job opportunities for Oklahomans.

These tax incentives include rebates up to 35% on qualified expenditures, which greatly assist in reducing the overall cost of film and television productions. Additionally, the state grants a sales tax exemption, enabling the industry to save on related expenses.

The Oklahoma Film Enhancement Rebate Program has a proven track record, showcasing the positive impact tax incentives can have on the film industry. Numerous success stories within the state can be attributed to these incentives, such as the production of the acclaimed movie "August: Osage County" and the popular FX series "Reservation Dogs."

In conclusion, Oklahoma's film industry tax incentives are an essential factor contributing to the growth and prosperity of the local entertainment industry. By continuing to offer these competitive incentives, Oklahoma can solidify its reputation as a top choice for film and television productions, and foster further development and success in the years to come.

 
Sebastian Sauerborn
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