Okla. Stat. tit. 68, § 68-3642.5

amounts — Requirements.

A. Subject to the final approval of the eligibility application

by the Oklahoma Department of Commerce, a requirement that the

incentive rebate payments made pursuant to the provisions of this

act achieve the maximum positive impact for the Oklahoma economy and

subject to the Oklahoma workforce requirements of this title, the

base incentive amount for a live audience episodic series filmed in

this state shall be a minimum of twenty-five percent (25%) of the

qualified goods and services production expenditure amount with the

following requirements:

1. Live audience episodic series as defined in Section 2 of

this act shall meet all of the following requirements:

a. minimum budget for the live audience episodic series

shall be Two Hundred Thousand Dollars ($200,000.00)

per episode,

b. minimum of six episodes per season produced, and

c. minimum of fifty live audience members in attendance

for each episode filmed in a live audience studio

facility; and

2. For the production of live audience episodic series filmed

in this state, wages paid to nonresident crew shall be provided in a

fixed amount of twenty percent (20%) and wages paid to resident crew

shall be provided in a fixed amount of thirty percent (30%).

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

soundstage 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 latest Federal Decennial Census or most

recent population estimate;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1416

2. Two percent (2%) of the qualified production 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, in a

municipality having a population of twenty-five thousand (25,000) or

fewer persons according to the latest 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 at least twenty-five percent (25%) of main crew principal

photography days are filmed at a qualified soundstage facility;

4. Two percent (2%) of the qualified production expenditure

amounts paid to an Oklahoma vendor for the post-production expenses

of:

a. music production, recording, mixing, or composition,

or

b. licensing of Oklahoma music, with a minimum

expenditure of Twenty Thousand Dollars ($20,000.00);

5. 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 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 including Foley artist

processes or services, and

j. graphics, including, but not limited to, the GFX

system.

C. Notwithstanding any other provisions of this section or the

provisions of this act to the contrary, in no case shall the total

incentive rebate payments authorized by this section exceed thirty

percent (30%) of the otherwise qualified goods and services
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 this section or the

provisions of this act to the contrary, in no case shall the total

incentive rebate payments authorized by this section exceed thirty

percent (30%) of the otherwise qualified goods and services

production expenditure amount. The incentive rebate 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%).

D. To qualify for the maximum twenty-five percent (25%) base

incentive rebate payment on qualified goods and services production

expenditures for Oklahoma in live audience episodic series pursuant

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1417

to subsection A of this section, the project shall utilize the

services of apprentices according to the following requirements:

1. For a production with Oklahoma expenditures of Seven Million

Five Hundred Thousand Dollars ($7,500,000.00) or less, two

apprentices;

2. For a production with Oklahoma expenditures greater than

Seven Million Five Hundred Thousand Dollars ($7,500,000.00) and

Fifteen Million Dollars ($15,000,000.00) or less, four apprentices;

3. For a production with Oklahoma expenditures greater than

Fifteen Million Dollars ($15,000,000.00) and Twenty-five Million

Dollars ($25,000,000.00) or less, eight apprentices; and

4. For a production with Oklahoma expenditures greater than

Twenty-five Million Dollars ($25,000,000.00), sixteen apprentices.

E. All production projects for which any incentive is paid

pursuant to the provisions of this act shall contain a logo, as

approved by the Oklahoma Department of Commerce, to be displayed in

the credits of the finished production for a period of at least five

(5) seconds or, if the production does not contain credits, the

Oklahoma Department of Commerce shall obtain a commitment by the

production company to provide equivalent value as determined by the

Oklahoma Department of Commerce.