'A game-changer on so many levels.' Bill to increase Oklahoma film incentive cap advances
The call for "quiet on set" rang out across the second-floor rotunda of the state Capitol on Tuesday afternoon.
The brief laughter and silence were followed by cheers as the hundreds of Oklahoma industry professionals gathered for Film Day at the Capitol got the news that House Bill 1362, which would more than double the cap for the state film incentive, had passed out of committee.
"We're going to keep working, just grinding it out, until we make Oklahoma the film capital of the world — at least we're going to do the best job we can," Rep. Scott Fetgatter, R-Okmulgee, the bill's author, told the crowd.
Fetgatter co-authored the Filmed in Oklahoma Act of 2021, which established the current state film incentive program. HB 1362 would boost the annual cap for the state film incentive from $30 million to $80 million.
"When you look at what's happened since ... two years ago, one of the problems that I knew coming out of the gate — but we got what we could get — was that it still wasn't going to be enough," Fetgatter told The Oklahoman before HB 1362's committee hearing.
"We turned away about $87 million that would have been paid out in rebate last year, and we turned away 80% of the films that applied. So, every one of those films we turn away is jobs."
How would HB 1362 change the state film incentive?
After the state's current film incentive program started taking applications in August 2021, the Oklahoma Film + Music Office received 77 applications in the first fiscal year. Of those Fiscal Year 2022 applicants, 27 projects were approved for the incentive.
As of mid-February, the film office had received 116 applications for the state film incentive since July 1, the first day of Fiscal Year 2023.
"I've heard in my whole life that we need to diversify our economy in Oklahoma. ... Film is just another piece of that puzzle," Fetgatter told The Oklahoman.
"We either have to decide as a state that we want film to be a growing, thriving industry in Oklahoma — or not. And so, I'm giving the legislative body the opportunity to make that decision."
HB 1362 also would lower the rebate a project could receive on qualified expenses from a potential maximum of 38% to a maximum of 30%.
"Now that we've drawn attention, the industry has given me feedback that, hey, 30% is still extremely competitive. So, if we can lower that down, it spreads out the money for more productions across the board," Fetgatter said.
Plus, HB 1362 would create three tiers of productions as opposed to the current two. If it is passed by the state Legislature and signed into law by the governor, the bill would allocate $5 million annually for projects with total expenditures of less than $1 million; $18.75 million for projects between $1 million and $7.5 million; and $56.25 million for projects over $7.5 million.
Productions still would have to spend more than $50,000 to be considered for the rebate.
Film industry leaders call the new bill a 'game-changer'
Jeanette Stanton, director of the Oklahoma Film + Music Office, told The Oklahoman that it was a remarkable coincidence that HB 1362 passed out of committee on Film Day at the Capitol.
"It's a big deal for the industry," she said. "It's obviously one foot in the right direction. So, we're excited to see the next steps and what happens."
The actors, filmmakers and entrepreneurs gathered on the second floor of the Capitol were buzzing about the possibilities as HB 1362 advances to the floor of the state House of Representatives.
"It's a game-changer on so many levels," said Amy Janes, a co-founder of Green Pastures Studio, as well as the Oklahoma Motion Picture Alliance, which organized Film Day at the Capitol.
"And of all days that this could happen, that this wasn't planned, it's incredible."
This article originally appeared on Oklahoman: Oklahoma HB 1362 would boost film incentive cap from $30M to $80M
