Okla. Admin. Code § 150:150-1-8

Current through Vol. 42, No. 7, December 16, 2024

Section 150:150-1-8 - Qualified production expenditures

(a) A Qualified Production Expenditure, or production cost, includes Oklahoma expenditures or production costs as defined in 68 O.S. §3632 including as the following expenditures, whether paid directly or through an Oklahoma based entity, subject to statutory limitations:

(1) Salary Costs for Oklahoma Resident Crew;

(2) Salary Costs for Oklahoma Expatriate Crew;

(3) Payments to the owner(s) of an Oklahoma Loan-Out Company for Oklahoma Resident Crew;

(4) Payments to the owner(s) of an Oklahoma Loan-Out Company or salary payments for Crew that is not Oklahoma-Based or who are non-residents, other than above-the-line personnel, subject to the sunset limitations in 68 O.S. §3635(A);

(5) Subject to the twenty-five percent limitation, the sum of:

(A) payments to Oklahoma-Based above the line personnel

(B) payments to Oklahoma Loan-Out Companies for Above-the-line personnel; and

(C) payments to an Oklahoma-Based entity for using the Film's underlying creative work (e.g., screenplay, treatment, or novel).

(6) Permits and fees paid to an Oklahoma state, county, or municipal governmental or quasi-governmental entity;

(7) Payments to an Oklahoma Vendor for the following:

(A) Studio, stage or set construction and dismantling;

(B) Production scheduling, management, administration and operations;

(C) Casting and security services;

(D) Wardrobe and make-up materials, consumables and services;

(E) Set props and accessories (individual props costing in excess of fifty thousand dollars ($50,000) may only be included as a QPE if prior approval is granted by the OFMO);

(F) Cameras, film, microphones, tape, digital storage media and other materials and equipment used to record sound and images;

(G) Photography, visual image editing, animation, Computer graphics and effects, and related visual services;

(H) Sound (other than music) recording, editing, synchronization and related services;

(I) Licensing or use rights for music, or recording of songs or musical score, used in the Film including, with the approval of OFMO, licensing fees paid to an out of state entity for the use of music made by a musician that is an Oklahoma Resident);

(J) Lighting and electrical materials, equipment and services;

(K) Location, building, facility, equipment, prop and wardrobe rental;

(L) Stunts, special effects, pyrotechnics, firefighting, safety, handling/wrangling, security and other specialty services;

(M) Lodging and accommodations (whether paid for directly by the Production Company, paid through a third party who is paid by the production company, or provided as an allowance in the amount of actual costs of housing) for ATL and Crew;

(N) Food, restaurants and catering (whether paid for directly by the Production company or paid through a third party who is paid by the Production Company);

(O) Transportation of ATL, Crew, equipment and supplies (whether paid for directly by the Production company or paid through a third party who is paid by the Production Company);

(P) Travel costs to and from Oklahoma paid to or through an Oklahoma travel agent;

(Q) Completion bonds and insurance where either the guarantor or the is an Oklahoma Vendor);

(R) Shipping and postage for packages originating or terminating within Oklahoma;

(S) Fees, interest and financing charges paid to Oklahoma-Based Vendors and Oklahoma Based financial institutions and companies;

(T) Other materials, supplies and contracted services approved in advance by OFMO;

(U) CPA Report.

(8) Payments to an Oklahoma Vendor for the following valid Scouting Expenses of the Production:

(A) Location scouting, planning and packaging services;

(B) Travel costs to and from Oklahoma paid to a travel agent;

(C) Lodging and accommodations within Oklahoma;

(D) Transportation within Oklahoma;

(E) Meals purchased within Oklahoma.

(9) Reimbursements made to individuals for goods and Services provided by an Oklahoma Vendor that would have been QPE if paid directly by the Production, provided the individual provides a receipt for such goods and services.

(10) Reimbursements made for automobile mileage and toll fees paid to crew for travel beginning from a location in Oklahoma and ending at another location in Oklahoma as long as:

(A) mileage payments are limited to the current Internal Revenue Service (IRS) standard mileage rates and

(B) the payment of mileage is compliant with IRS rules for claiming mileage.

(11) Box rental fees paid to an Oklahoma resident crew member or an Oklahoma Expatriate crew member for the crew member using his or her own equipment or resources on a Film.

Okla. Admin. Code § 150:150-1-8

Adopted by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022