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Oklahoma Legislature· HB 2110Becomes law without Governor's signature 05/25/2025

An act relating to revenue and taxation, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                        STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 2110                 By: Osburn

4

5

6                               AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Sections 3621, 3622, 3623, as amended by

8   Section 43, Chapter 59, O.S.L. 2024, 3624, as amended

    by Section 47, Chapter 228, O.S.L. 2022, 3625 and

9   3626 (68 O.S. Supp. 2024, Sections 3623 and 3624),

    which relate to the Compete with Canada Film Act;

10  modifying short title; modifying legislative

    findings; modifying definitions; modifying provisions

11  related to incentive payments; modifying references;

    modifying provisions related to revolving fund; and

12  providing an effective date.

13

14

15

16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

17  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 3621, is

18 amended to read as follows:

19  Section 3621. This act shall be known and may be cited as the

20 "Compete with Canada Film Act" "Oklahoma is Bringing Sitcoms Home

21 from Hollywood Act".

22  SECTION 2.      AMENDATORY  68 O.S. 2021, Section 3622, is

23 amended to read as follows:

24

    Req. No. 12198                                         Page 1
1   Section 3622. The Legislature hereby finds that the production

2 of films live audience episodic television in Oklahoma not only

3 provides jobs for Oklahomans and dollars for Oklahoma businesses,

4 but also enhances the state's image nationwide with a focus on

5 family friendly content targeting Middle America. Recognizing The

6 Legislature also finds that the high costs of film production are

7 driving motion picture and television production out of the country,

8 most notably to Canada, and that the film entertainment industry is

9 always seeking attractive locations that can help cut the costs of

10 production, the Legislature further finds that the State of

11 Oklahoma, with the appropriate incentive, can become an attractive

12 site for film live audience episodic television production and that

13 Oklahoma is presently among several states with minimal incentives

14 to attract the film industry. It is therefore the intent of the

15 Legislature that Oklahoma provide an the first incentive that will

16 stand out among those of other states and increase film specifically

17 for live audience episodic television production in this state,

18 carving out a niche in the industry that Oklahoma can be known for.

19  SECTION 3.      AMENDATORY  68 O.S. 2021, Section 3623, as

20 amended by Section 43, Chapter 59, O.S.L. 2024 (68 O.S. Supp. 2024,

21 Section 3623), is amended to read as follows:

22  Section 3623. As used in the Compete with Canada Film Act

23 Oklahoma is Bringing Sitcoms Home from Hollywood Act:

24

    Req. No. 12198                                                 Page 2
1   1. "Crew" means any person who works on preproduction,

2 principal photography, and postproduction, with the exception of

3 producers, principal cast, screenwriters, and the director. The

4 qualifying salary of producers, principal cast, screenwriters, and

5 the director, also known as "above-the-line personnel", may be

6 included as crew if the salaries are paid to loan-out corporations

7 and limited liability companies registered to do business in the

8 State of Oklahoma or the salaries are paid to Oklahoma-based above-

9 the-line personnel. The qualifying salary of above-the-line

10 personnel shall not comprise more than twenty-five percent (25%) of

11 total expenditures as defined in paragraph 2 3 of this section. For

12 purposes of this paragraph, "Oklahoma-based" means a company or

13 individual with an Oklahoma income tax requirement;

14  2. "Live audience episodic television" means episodic

15 television filmed in front of a live audience intended for broadcast

16 on network television, cable and streaming platforms. The audience

17 should consist of a minimum of fifty (50) people;

18  3. "Expenditure" or "production cost" includes but is not

19 limited to:

20  a. wages or salaries of persons who are residents of this

21              state and who have earned income from working on a

22              film live audience episodic television in this state

23              including payments to personal services corporations

24              with respect to the services of qualified performing

    Req. No. 12198                                                  Page 3
1              artists, as determined under Section 62(a)(A) of the

2              Internal Revenue Code,

3   b. the cost of construction and operations, wardrobe,

4              accessories and related services,

5   c. the cost of photography, sound synchronization,

6              lighting and related services,

7   d. the cost of editing and related services,

8   e. rental of facilities and equipment,

9   f. other direct costs of producing a film live audience

10             episodic television, and

11  g. the wages and salaries of persons who are defined and

12             registered as an Oklahoma Expatriate by the Office of

13             the Oklahoma Film and Music Office within the Oklahoma

14             Department of Commerce Commission;

15  3. "Film" means a professional single media, multimedia program

16 or feature

17  4. "Live audience episodic series" means an episodic television

18 series that is filmed in front of a live audience, which is not

19 child sexual abuse material as defined in subsection A of Section

20 1024.1 of Title 21 of the Oklahoma Statutes or obscene material as

21 defined in paragraph 1 of subsection B of Section 1024.1 of Title 21

22 of the Oklahoma Statutes including, but not limited to, national

23 advertising messages that are broadcast on a national affiliate or

24 cable network, fixed on film or digital video, which can live

    Req. No. 12198                                                Page 4
1 audience episodic series to be viewed or reproduced and which is

2 exhibited in theaters, licensed for exhibition by individual

3 television stations, groups of stations, networks, cable television

4 stations or other means or licensed for home viewing markets;

5   4. "High impact production" means a production for which total

6 expenditures or production costs are equal to or greater than Fifty

7 Million Dollars ($50,000,000.00), with at least one-third (1/3) of

8 total costs deemed Oklahoma expenditures by the Oklahoma Film and

9 Music Office; and

10  5. "Production company" means a person or company who produces

11 film live audience episodic series for exhibition in theaters,

12 television or elsewhere on individual television stations, groups of

13 stations, networks, cable television stations or other means or

14 licensed for home viewing markets.

15  SECTION 4.       AMENDATORY  68 O.S. 2021, Section 3624, as

16 amended by Section 47, Chapter 228, O.S.L. 2022 (68 O.S. Supp. 2024,

17 Section 3624), is amended to read as follows:

18  Section 3624. A. There is hereby created the Oklahoma Film

19 Enhancement is Bringing Sitcoms Home from Hollywood Rebate Program.

20 A rebate in the amount of up to seventeen percent (17%) of

21 documented expenditures made in Oklahoma directly attributable to

22 the production of a film, live audience episodic series for

23 television production, or television commercial, as defined in

24 Section 3623 of this title, in this state, may be paid to the

    Req. No. 12198                                                  Page 5
1 production company responsible for the live audience production.

2 Provided, for documented expenditures made after July 1, 2009, the

3 rebate amount shall be thirty-five percent (35%), except as provided

4 in subsection B of this section. Provided, for documented

5 expenditures made after July 1, 2025, the rebate amount shall be

6 thirty percent (30%).

7   B. The amount of rebate paid to the production company as

8 provided for in subsection A of this section shall be increased by

9 an additional two percent (2%) of documented expenditures if a

10 production company spends at least Twenty Thousand Dollars

11 ($20,000.00) for the use of music created by an Oklahoma resident

12 that is recorded in Oklahoma or for the cost of recording songs or

13 music in Oklahoma for use in the production.

14  C. The rebate program shall be administered by the Office of

15 the Oklahoma Film and Music Office within the Oklahoma Department of

16 Commerce Commission and the Oklahoma Tax Commission, as provided in

17 the Compete with Canada Film Oklahoma is Bringing Sitcoms Home from

18 Hollywood Act.

19  D. C. To be eligible for a rebate payment:

20  1. The production company responsible for a film, television

21 production, or television commercial, live audience episodic series

22 as defined in Section 3623 of this title, made in this state shall

23 submit documentation to the Office of the Oklahoma Film and Music

24 Office Commission of the amount of wages paid for employment in this

    Req. No. 12198                                                Page 6
1 state to residents of this state directly relating to the production

2 and the amount of other expenditure or production costs cost

3 incurred in this state directly relating to the production;

4   2. The production company has filed or will file any Oklahoma

5 tax return or tax document which may be required by law;

6   3. Except major studio productions, the production company

7 shall provide the name of the completion guarantor and a copy of the

8 bond guaranteeing the completion of the project or if a film has not

9 secured a completion bond, the production company shall provide

10 evidence that all Oklahoma crew and local vendors have been paid and

11 there are no liens against the production company pending in the

12 state;

13  4. The minimum budget for the film live audience episodic

14 series shall be Fifty Thousand Dollars ($50,000.00) of which not

15 less than Twenty-five Thousand Dollars ($25,000.00) shall be

16 expended in this state Two Hundred Thousand Dollars ($200,000.00)

17 per episode;

18  5. 4. The production company shall provide evidence of

19 financing for production prior to the commencement of principal

20 photography; and

21  6. 5. The production company shall provide evidence of a

22 certificate of general liability insurance with a minimum coverage

23 of One Million Dollars ($1,000,000.00) and a workers' compensation

24

    Req. No. 12198                                                  Page 7
1 policy pursuant to state law, which shall include coverage of

2 employer's liability.

3   E. D. A production company shall not be eligible to receive

4 both a rebate payment pursuant to the provisions of Section 3621 et

5 seq. of this title this act and an exemption from sales taxes

6 pursuant to the provisions of paragraph 23 of Section 1357 of this

7 title. If a production company has received such an exemption from

8 sales taxes and submits a claim for rebate pursuant to the

9 provisions of the Compete with Canada Film Act Oklahoma is Bringing

10 Sitcoms Home from Hollywood Act, the company shall be required to

11 fully repay the amount of the exemption to the Oklahoma Tax

12 Commission. A claim for a rebate shall include documentation from

13 the Oklahoma Tax Commission that repayment has been made as required

14 herein or shall include an affidavit from the production company

15 that the company has not received an exemption from sales taxes

16 pursuant to the provisions of paragraph 21 of Section 1357 of this

17 title.

18  F. E. The Office of the Film and Music Commission shall approve

19 or disapprove all claims for rebate and shall notify the Oklahoma

20 Tax Commission. The Oklahoma Tax Commission shall, upon

21 notification of approval from the Oklahoma Film and Music Office,

22 issue payment for all approved claims from funds in the Oklahoma is

23 Bringing Sitcoms Home from Hollywood Rebate Program Revolving Fund

24 created in Section 3625 of this title. Excluding any rebate

    Req. No. 12198                                                  Page 8
1 payments to high impact productions as provided for in subsection G

2 of this section, the The amount of claims prequalified and approved

3 by the Office for payments in any single fiscal year shall not

4 exceed Eight Million Dollars ($8,000,000.00) Ten Million Dollars

5 ($10,000,000.00). If the amount of approved claims exceeds the

6 amount specified in this subsection in a fiscal year, payments shall

7 be made in the order in which the claims are approved by the Office

8 of the Oklahoma Film and Music Commission. If an approved claim is

9 not paid in whole or in part, the unpaid claim or unpaid portion may

10 be paid in the following fiscal year subject to the limitations

11 specified in this subsection. The liability of the State of

12 Oklahoma to make incentive payments pursuant to this act shall be

13 limited to the balance of the Oklahoma Film Enhancement Rebate

14 Program Revolving Fund.

15  G. 1. At the time the Oklahoma Film and Music Office issues a

16 conditional prequalification for a production, such prequalification

17 may include a proposed designation as a high impact production, as

18 defined in Section 3623 of this title.

19  2. The proposed designation must be approved by the Cabinet

20 Secretary for Commerce.

21  3. If the high impact production otherwise meets all of the

22 requirements of the Compete with Canada Act and the Office gives

23 final approval to rebate claims, such rebate claims shall not be

24

    Req. No. 12198                                                 Page 9
1 subject to the Eight Million Dollar ($8,000,000.00) cap provided for

2 in subsection F of this section.

3   4. The payment of a rebate claim approved by the Office for a

4 production designated as a high impact production by the Cabinet

5 Secretary may be made as follows:

6   a. by special appropriation to the Oklahoma Film

7               Enhancement Rebate Program Revolving Fund, if the

8               claim is approved during a regular or special session

9               of the Oklahoma Legislature, or

10  b. by payment from the Oklahoma Quick Action Closing Fund

11              pursuant to Section 48.2 of Title 62 of the Oklahoma

12              Statutes, if the claim is approved when the Oklahoma

13              Legislature is not in session.

14  SECTION 5.      AMENDATORY       68 O.S. 2021, Section 3625, is

15 amended to read as follows:

16  Section 3625. A. There is hereby created in the State Treasury

17 a revolving fund for the Oklahoma Tax Commission to be designated

18 the "Oklahoma Film Enhancement Rebate Program is Bringing Sitcoms

19 Home from Hollywood Revolving Fund". The fund shall be a continuing

20 fund, not subject to fiscal year limitations, and shall consist of

21 all monies received by the Oklahoma Tax Commission which are

22 specifically required by law to be deposited in the fund, any public

23 or private donations, contributions, and gifts received for the

24 benefit of the fund and any amounts appropriated by the Oklahoma

    Req. No. 12198                                               Page 10
1 Legislature. All monies accruing to the credit of the fund are

2 hereby appropriated and may be budgeted and expended by the Tax

3 Commission for the purpose of paying rebates as provided in this

4 act. Expenditures from the fund shall be made upon warrants issued

5 by the State Treasurer against claims filed as prescribed by law

6 with the Director of the Office of Management and Enterprise

7 Services for approval and payment.

8   B. The Oklahoma Tax Commission shall apportion, from the

9 revenues which would otherwise be apportioned to the General Revenue

10 Fund pursuant to subparagraph a of paragraph 1 of Section 2352 of

11 this title, an amount that the Commission estimates to be necessary

12 to pay the rebates provided by Section 3624 of this title to the

13 Oklahoma Film Enhancement Rebate Program is Bringing Sitcoms Home

14 from Hollywood Revolving Fund.

15  SECTION 6.      AMENDATORY     68 O.S. 2021, Section 3626, is

16 amended to read as follows:

17  Section 3626. The provisions of the Compete with Canada Film

18 Act Oklahoma is Bringing Sitcoms Home from Hollywood Act shall be

19 terminated effective July 1, 2027 2032, and no claim shall be paid

20 thereafter.

21  SECTION 7. This act shall become effective November 1, 2025.

22

23  60-1-12198      MAH  01/16/25

24

    Req. No. 12198                                              Page 11
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