{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.101","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.101","heading":"Credit for investment in film or music project","body":"A. Except as otherwise provided in subsection E of this\n\nsection, for taxable years beginning after December 31, 2004, and\n\nending before January 1, 2015, there shall be allowed against the\n\ntax imposed by Section 2355 of this title, a credit equal to twenty-\n\nfive percent (25%) of the amount of profit made by a taxpayer from\n\ninvestment in an existing Oklahoma film or music project with a\n\nproduction company to pay for production costs that is reinvested by\n\nthe taxpayer with the production company to pay for the production\n\ncost of the production company for a new Oklahoma film or music\n\nproject.\n\nB. In no event shall the amount of the credit provided for in\n\nsubsection A of this section for an eligible taxpayer exceed the tax\n\nliability of the taxpayer in a calendar year.\n\nC. The Oklahoma Tax Commission shall have the authority to\n\nprescribe forms for purposes of claiming the credit authorized in\n\nsubsection A of this section. The forms shall include, but not be\n\nlimited to, requests for information that prove who the investment\n\nwas with, the amount of the original investment and the amount of\n\nthe profit realized from the investment.\n\nD. As used in this section:\n\n1. \"Film\" means a professional single media, multimedia program\n\nor feature, which is not child sexual abuse material as defined in\n\nsubsection A of Section 1024.1 of Title 21 of the Oklahoma Statutes\n\nor obscene material as defined in paragraph 1 of subsection B of\n\nSection 1024.1 of Title 21 of the Oklahoma Statutes including, but\n\nnot limited to, national advertising messages that are broadcast on\n\na national affiliate or cable network, fixed on film or digital\n\nvideo, which can be viewed or reproduced and which is exhibited in\n\ntheaters, licensed for exhibition by individual television stations,\n\ngroups of stations, networks, cable television stations or other\n\nmeans or licensed for home viewing markets;\n\n2. \"Music project\" means a professional recording released on a\n\nnational or international level, whether via traditional\n\nmanufacturing or distributing or electronic distribution, using\n\ntechnology currently in use or future technology including, but not\n\nlimited to, music CDs, radio commercials, jingles, cues, or\n\nelectronic device recordings;\n\n3. \"Production company\" means a person who produces a film or\n\nmusic project for exhibition in theaters, on television or\n\nelsewhere;\n\n4. \"Total production cost\" includes, but is not limited to:\n\na. wages or salaries of persons who have earned income\n\nfrom working on a film or music project in this state,\n\nincluding payments to personal services corporations\n\nwith respect to the services of qualified performing\n\nartists, as determined under Section 62(a)(A) of the\n\nInternal Revenue Code,\n\nb. the cost of construction and operations, wardrobe,\n\naccessories and related services,\n\nc. the cost of photography, sound synchronization,\n\nlighting and related services,\n\nd. the cost of editing and related services,\n\ne. rental of facilities and equipment, and\n\nf. other direct costs of producing a film or music\n\nproject;\n\n5. \"Existing Oklahoma film or music project\" means a film or\n\nmusic project produced after July 1, 2005;\n\n6. \"Profit\" means the amount made by the taxpayer to be\n\ndetermined as follows:\n\na. the gross revenues less gross expenses, including\n\ndirect production, distribution and marketing costs\n\nand an allocation of indirect overhead costs, of the\n\nfilm or music project shall be multiplied by,\n\nb. a ratio, the numerator of which is Oklahoma production\n\ncosts, as defined in paragraph 7 of this subsection,\n\nand the denominator of which is total production\n\ncosts, as defined in paragraph 4 of this subsection,\n\nwhich shall be multiplied by,\n\nc. the percent of the taxpayer's taxable income allocated\n\nto Oklahoma in a taxable year, and\n\nd. subtract from the result of the formula calculated\ncosts, as defined in paragraph 7 of this subsection,\n\nand the denominator of which is total production\n\ncosts, as defined in paragraph 4 of this subsection,\n\nwhich shall be multiplied by,\n\nc. the percent of the taxpayer's taxable income allocated\n\nto Oklahoma in a taxable year, and\n\nd. subtract from the result of the formula calculated\n\npursuant to subparagraphs a through c of this\n\nparagraph the profit made by a taxpayer from\n\ninvestment in an existing Oklahoma film or music\n\nproject in previous taxable years. Profit shall\n\ninclude either a net profit or net loss;\n\n7. \"Oklahoma production cost\" means that portion of total\n\nproduction costs which are incurred with any qualified vendor;\n\n8. a. \"Qualified vendor\" means an Oklahoma entity which\n\nprovides goods or services to a production company and\n\nfor which:\n\n(1) fifty percent (50%) or more of its employees are\n\nOklahoma residents, and\n\n(2) fifty percent (50%) or more of gross wages, as\n\nreported on Internal Revenue Service Form W-2 or\n\nForm 1099, are paid to Oklahoma residents.\n\nb. For purposes of this paragraph, an employee shall\n\ninclude a self-employed individual reporting income\n\nfrom a qualified vendor on Internal Revenue Service\n\nForm 1040.\n\nc. The Oklahoma Tax Commission shall prescribe forms by\n\nwhich an entity may be certified to a production\n\ncompany as a qualified vendor for purposes of this\n\nsection; and\n\n9. \"Investment\" means costs associated with the original\n\nproduction company. Film or music projects acquired from an\n\noriginal production company do not qualify as investment under\n\nsubsection A of this section.\n\nE. No credit otherwise authorized by the provisions of this\n\nsection may be claimed for any event, transaction, investment,\n\nexpenditure or other act occurring on or after July 1, 2010, for\n\nwhich the credit would otherwise be allowable. The provisions of\n\nthis subsection shall cease to be operative on July 1, 2012.\n\nBeginning July 1, 2012, the credit authorized by this section may be\n\nclaimed for any event, transaction, investment, expenditure or other\n\nact occurring on or after July 1, 2012, according to the provisions\n\nof this section.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3759ad7d040e7c36a6016268239700df09227133346a08da76eb7fc658a609d9","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.100","next":"us-ok/okla.-stat.-tit.-68-68-2357.103"},"notice":"GroundRules: Original legal text. Not legal advice."}