Oklahoma Film Incentives: Too Small to Cut?

Bryan Bedder / Getty Images

Jessica Alba, Casey Affleck and Kate Hudson at the after party for "The Killer Inside Me," which was filmed in Oklahoma and recieved state subsidies.

In states across the country, subsidies and tax credits for film projects are being left on the cutting room floor.

Oklahoma’s $5 million incentive program — which was among those scrutinized by the tax credit task force — is at risk, and state filmmakers and supporters are fighting back, according to Oklahoma Watch, which reports that the state has helped finance 20 feature films in four years, including one that starred Casey Affleck, Jessica Alba and Kate Hudson.

But a state lawmaker says the Oklahoma film industry isn’t adequately casting for an important, recurring role: Full-time Employee.

“We give them up to 37 percent of all of their costs, and there aren’t any full-time jobs from that,” Rep. David Dank, R-Oklahoma City, told Oklahoma Watch. “They say there will be full-time jobs in the future. But I want to know when and where.”

Currently, most film work in Oklahoma is temporary, said Jill Simpson, director of the Oklahoma Film and Music Office. This year’s $5 million subsidy will “stimulate” $15 million in spending on labor, food, lodging and other expenses, she told Oklahoma Watch.

The idea, basically: small, successful film projects will snowball into more, bigger film projects. Over time, Simpson said, there will be enough film activity to support permanent industry employment.

Oklahoma’s film incentives are among those included in a moratorium installed in 2010 to help offset a state revenue shortfall. The moratorium is set to expire on Dec. 31, but Dank, who co-chaired the tax credit task force, has filed a bill that would extend the suspension two more years.

The Small Screen?

Compared to some states, Oklahoma’s film subsidies are relatively small.

Is that a good or bad thing?

That might depend on when you ask industry supporters.

Small was a bad thing in 2011, when the Film and Music Office tried unsuccessfully to double the program’s cap to $10 million. And all $5 million of the film subsidy was tapped just three months into FY 2012, Oklahoma Watch reports.

Small could be good, however, when you’re in the state’s funding cross-hairs.

“I know every program is being scrutinized, but we’re tiny in the scheme of things,” Simpson told Oklahoma Watch. “With the program capped at $5 million, we’re not attracting blockbusters. We’re not trying to create Hollywood in Oklahoma.”

Comments

  • Jill Simpson

    Last year’s moratorium was placed on the 25% Reinvestment Tax Credit for film projects in Oklahoma, which to date, has not been utilized. The Oklahoma Film Enhancement Rebate Program is currently in tact but two bills have recently been filed for the upcoming legislative session, placing its future in jeopardy: Senate Bill 1435 would repeal the rebate program immediately upon passage. Senate Bill 1623 would reduce the current 35-37% rebate to 17.5% effective January 1, 2013 and sets forth that no rebate is payable on or after January 1, 2014, abolishing the program a full six months prior the current statutory sunset date of July 1, 2014.

    The Oklahoma Film Enhancement Rebate Program is a very successful program. In the last five months, the Oklahoma Film & Music Office has been able to prequalify six films to the program’s capacity for both FY12 and FY13, the latest being “August Osage County” based on the Tony and Pulitzer Prize winning play. Since January, the Oklahoma Film & Music Office has had to turn away at least a dozen films due to the rebate fund being on empty..

    Many hardworking Oklahomans rely on the film industry for their livelihoods. Abolishing the Oklahoma Film Enhancement Rebate will equate to loss of jobs and industry that many have worked hard to create in our state.

    Jill Simpson
    Director, The Oklahoma Film & Music Office

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