Oklahoma § 68-3633 - Incentive rebate program

§ 68-3633. Incentive rebate program

A. There is hereby created an incentive rebate program for

certain film projects and eligible television series projects filmed

or produced in Oklahoma who meet the requirements of this act.

B. The rebate program shall be administered by the Oklahoma

Department of Commerce and the Oklahoma Tax Commission.

C. By October 1 of each year, the Oklahoma Department of

Commerce shall submit an annual report to the Speaker of the House

of Representatives, the President Pro Tempore of the Senate, the

Chair of the Appropriations and Budget Committee of the House of

Representatives, the Chair of the Appropriations Committee of the

Senate and the Director of the Legislative Office of Fiscal

Transparency detailing the program and incentive rebate payments.

D. The Oklahoma Department of Commerce and the Oklahoma Tax

Commission may promulgate rules to implement the provisions of this

act.

E. To be eligible for a rebate payment a production company

shall:

1. Submit an application and documentation to the Oklahoma

Department of Commerce as required by the Department;

2. Have filed any Oklahoma tax returns and tax documents

required by law;

3. Provide evidence that all Oklahoma crew and local vendors

have been paid and that there are no pending liens against the

production company in this state;

4. Provide evidence of financing for production prior to the

commencement of principal photography;

5. 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 policy in compliance

with law, which shall include coverage of employer's liability;

Oklahoma Statutes - Title 68. Revenue and Taxation

6. Provide evidence, as required by the Department, that the

projects pursuant to this act are completed; and

7. The production company, or its payroll service provider,

shall withhold Oklahoma income tax at the highest percentage rate

found in the withholding statutes, on all payments to loan-out

companies for services performed in Oklahoma. The amounts so

withheld shall be allocated to the loan-out company's employees

based on the payments made to the loan-out company's employees for

services performed in Oklahoma. The loan-out company employees

performing services in Oklahoma shall be considered taxable and the

loan-out company shall be subject to income taxation in the taxable

year in which the loan-out company's employees perform services in

Oklahoma.

F. A production company shall not be eligible to receive both a

rebate payment pursuant to the provisions of this act and an

exemption from sales tax pursuant to the provisions of paragraph 23

of Section 1357 of Title 68 of the Oklahoma Statutes. If a

production company has received the exemption from sales taxes and

submits a claim for rebate pursuant to the provisions of this act,

the company shall be required to fully repay the amount of the

exemption to the Tax Commission. A claim for a rebate shall include

documentation from the Tax Commission that repayment has been made

as required in this subsection or shall include an affidavit from

the production company that the company has not received an

exemption from sales tax pursuant to the provisions of paragraph 23

of Section 1357 of Title 68 of the Oklahoma Statutes.

G. The Department of Commerce shall approve or disapprove all

claims for rebate and shall notify the Tax Commission subject to the

limitations set forth in Section 4 of this act. Upon notification

of approval from the Department, the Commission shall issue payment

for all approved claims from funds held in the Filmed in Oklahoma

Program Revolving Fund created pursuant to Section 9 of this act and

subject to the limitations set forth in Section 4 of this act. If

the amount of approved claims exceeds the balance of the revolving

fund, payments shall be made in the order the claims are approved by

the Department. If an approved claim is not paid in whole, the

unpaid claim or unpaid portion of the claim shall be paid upon the

availability of funds.

Added by Laws 2021, c. 516, § 3, eff. July 1, 2021. Amended by Laws

2025, c. 341, § 2, eff. July 1, 2025.

NOTE: Laws 2021, c. 516, § 15 states that the provisions of this

act shall be contingent upon the enactment of the provisions of

House Bill No. 2946 (c. 512) of the 1st Regular Session of the 58th

Oklahoma Legislature. House Bill No. 2946 was approved by the

Governor on May 24, 2021.