Current through Vol. 42, No. 1, September 16, 2024
(a) Applying for
Rebate Eligibility:
(1) Applications and all
necessary forms will be submitted through the OFMO website (okfilmmusic.org) or
as otherwise specified by OFMO.
(2)
Unless otherwise agreed to by OFMO, Eligibility Applications will be submitted
at least 60 calendar days prior to the Start of Principal Photography. The
exact requirements of the Eligibility Application are shown on the OFMO
website, but generally include:
(A) General
information about the Production;
(B) Contact information;
(C) Preliminary Production milestone
dates;
(D) A copy of the
screenplay;
(E) The Production
Budget top sheet and estimated headcount;
(F) Various acknowledgements of Program and
OFMO requirements and agreements to abide by them.
(3) Applicants may track the status of their
Eligibility Application on the OFMO website.
(4) Application does not guarantee
acceptance. OFMO considers each Eligibility Application individually based upon
many factors, including compliance with these Rules, the benefits of the
project to Oklahoma (such as jobs, tourism, branding, image and follow-on
work), funds available, anticipated future Program needs and other projects
applying for a Rebate.
(5) If the
Eligibility Application is approved, the Production Company will be
Pre-Qualified and OFMO will work with the Production to establish a Rebate
Schedule.
(6) At the time of
Pre-Qualification, Productions are assigned to a Fiscal Earmark Year based upon
the start of Principal Photography.
(7) Pre-Qualification does not guarantee
ultimate approval of a Rebate Claim. The Production Company must meet the
requirements of the Rebate Schedule and their Final Application must be
approved in order for the Rebate Claim to be approved.
(8) If the Eligibility Application is denied,
OFMO will provide the applicant with the reason(s) it was denied.
(9) Only one Eligibility Application per
fiscal year per Production will be accepted.
(b) Application Estimate: If the Eligibility
Application is approved, the Application Estimate will be multiplied by the
appropriate rebate percentage to determine the estimated amount to be paid in
the Rebate Claim (the "Potential Rebate Claim").
(c) If the Final Application and actual
Rebate Claim are approved:
(1) If the actual
QOE are less than or equal to the Application Estimate, the Rebate Claim will
be paid in full.
(2) If the actual
QOE are more than the Application Estimate, the Potential Rebate Claim amount
will be paid within the normal payment timeframe and the remainder will be
considered an additional claim and may, depending upon OFMO's discretion and
budget, be paid at a later date outside the normal timeframe.
(d) Rebate Schedule: After
Pre-Qualification, OFMO and the Production Company will establish a schedule of
dates based upon the following benchmarks:
(1)
60 calendar days prior to Principal Photography - submit Application Estimate
and Proof of Funding for at least fifty percent (50%) of the Production
Budget.
(2) Prior to paying
salaries or wages to a Production Company's employee in Oklahoma - submit a
certificate of workers' compensation insurance with limits pursuant to Oklahoma
law.
(3) 30 calendar days prior to
Principal Photography - submit the following:
(A) Proof of Funding for the Production
Budget;
(B) Updated shooting
schedule;
(C) Updated
screenplay;
(D) Copy of the
Completion Bond (defined in (e) below), if applicable;
(E) Additional documents as may be reasonably
requested by OFMO.
(4) 10
calendar days prior to Principal Photography
(A) Submit a certificate of general liability
insurance with a minimum limit of $1,000,000 in coverage (or a binder for such
with a start date no later than the estimated Start of
Pre-Production);
(B) Submit a
certificate of automobile liability insurance with minimums of
$250,000/500,000/250,000 coverage (or a binder for such with a start date no
later than the estimated Start of Pre-Production) or certification that no
employee of the Production will drive an automobile as part of the
Production;
(C) Work with OFMO to
draft and distribute a press release about the Production to relevant
media.
(5) During
Principal Photography - submit the following (preferably in advance, if
practical):
(A) Updates to the shooting
schedule;
(B) Updates to the
screenplay.
(6) Within 90
calendar days of completion of the Production (or payment date of last QOE, if
later):
(A) Upload through the OFMO website
the list of Oklahoma Crew, Oklahoma Expatriates and Oklahoma Vendors used on
the Production;
(B) Submit the
Final Application.
(e) Completion Bond: Unless a Production is
backed by a major studio or other financing source acceptable to OFMO, the
Production will post a Completion Bond from a guarantor acceptable to OFMO
guaranteeing the completion of the Production and payment of all Oklahoma
liabilities. In lieu of a Completion Bond, a Production may produce evidence
acceptable to OFMO that all Crew, vendors and taxes have been paid and there
are no outstanding or potential liens in Oklahoma against the Production
Company.
(f) Incremental Music
Rebate: To qualify for the additional rebate for Oklahoma music described in 68
O.S. § 3624(B), QOE described in Section
725:35-1-4(g)(9)
must be $20,000 or more.
(g) End of
Production Requirements:
(1) Unless otherwise
approved by OFMO, the end credit crawl of all release prints of a completed
short or long-form film shall include "Filmed in Oklahoma utilizing the
Oklahoma Film Enhancement Rebate Program" and a logo provided by
OFMO.
(2) The Production Company
shall provide to OFMO
(A) A film poster, final
release copy of the Film on DVD and digital link to a copy of the Film if
available.
(B) Production stills,
behind-the-scenes footage or other images OFMO can use to promote the
Program.
(h)
Certified Public Accountant's Report: Final Rebate Applications will be
accompanied by a CPA's Report, prepared at the expense of the Applicant,
attesting that the amounts in the application are QOE that comply with the
requirements of these rules.
(1) Reports will
be prepared by a CPA currently licensed by the State of Oklahoma and who is
independent under the American Institute of certified Public Accountants'
(AICPA) Independence Rule.
(2) CPAs
will carry professional liability insurance, in a form and from a carrier
acceptable to OFMO, for at least $500,000.
(3) The CPA's examination will be conducted
according to the AICPA's Attestation Standards.
(4) Reports will use a materiality threshold
set by OFMO and published on its website.
(5) CPAs will work with the Production
Company to resolve exceptions or discrepancies prior to submitting the Final
Application, such that the CPA's Report attests to the validity and accuracy of
the amounts on the Application without exception.
(6) The CPA's Report will attest:
(A) Actual Production expenditures were at
least $50,000 and QOE at least $25,000, or if a High-Impact Production, actual
expenditures were at least $50,000,000 and QOE at least $16,666,667.
(B) All amounts on the Application are
properly calculated and materially accurate.
(C) All Oklahoma payroll tax returns due from
the Production Company (or its payroll processor) have been filed.
(D) All Oklahoma income tax returns for the
Production Company due as of the review date have been filed.
(7) The CPA will retain all
workpapers for the CPA's Report for seven years, during which they may be
subject to audit by the OFMO or its agents, upon a request by OFMO.
(i) Final Application:
(1) Upon completion of the Production and
requirements herein, the Production Company will submit a Final
Application.
(2) Submitting a Final
Application does not guarantee approval. OFMO will approve or disapprove of all
claims within 60 calendar days of receipt of a properly completed Final
Application.
(3) If a Final
Application or Rebate Claim is denied, the Production Company may attempt to
correct any discrepancies or problems and resubmit within thirty (30) days of
denial.
(4) Once a Final
Application is approved by OFMO,
(A)
Amendments are not allowed;
(B) The
Production Company will work with OFMO to establish a vendor ID with the
State.
(5) The Oklahoma
Tax Commission will, upon notification of approval from the OFMO, issue payment
for all approved Rebate Claims, subject to any Fiscal Year Maximum imposed by
statute and any other agreements that the Production Company and OFMO have
agreed to in writing in the case that the Production is a High-Impact
Production.
(j) Fiscal
Year Maximum: The Program has a rolling cap, which adds a new amount to the
fund available to pay Rebate Claims each fiscal year. In order to ensure funds
are available to pay all Pre-Qualified Productions, OFMO assigns each
Pre-Qualification to a Fiscal Earmark Year, which may be one or more fiscal
years in the future. If the total amount available to pay claims in any one
fiscal year is restricted by statute, claim approval priority will be
determined using the Fiscal Earmark Year and some Productions might have to
wait until the first day of a future Fiscal Earmark Year in order to receive
payment. This statutory maximum would not affect the amount of the Rebate Claim
or its ultimate payment, but could affect the timing of when it is
paid.
(k) Delays, Transferability
and Expiration:
(1) A Pre-Qualified Production
may delay the start of Principal Photography two times as described below. If
the start is delayed a third time, or a Production does not start by the date
specified in their latest update to the Production Schedule submitted to OFMO,
Pre-Qualification is revoked, the Eligibility Application is denied and the
Production cannot apply again until the following fiscal year.
(A) The first time a Pre-Qualified Production
delays the start of Principal Photography, it moves to the end of the queue for
the Fiscal Earmark Year of the new start date. Subsequent Pre-Qualifications
with the same Fiscal Earmark Year are placed after it in the queue.
(B) The second time a Pre-Qualified
Production delays the start of Principal Photography, it is placed last in the
queue for the Fiscal Earmark Year of the new start date. Subsequent
Pre-Qualifications with the same Fiscal Earmark Year are placed ahead of it in
the queue.
(2)
Pre-Qualification is specific to the Production and Production Company, and is
non-transferable. Productions, screenplays and budgets may evolve but must
remain substantially similar to those submitted in the Eligibility
Application.
(3) Unless otherwise
approved by OFMO, Pre-Qualification expires:
(A) Two years after the approval date of the
Eligibility Application, if Principal Photography has not started, OR
(B) Two years from the start of Principal
Photography.
(l) Open Records Act Exemptions:
(1) OFMO is subject to the State of Oklahoma
Open Records Act, which governs public access to the records of government
agencies. Under 74 O.S. § 2231, certain information provided to OFMO by a
person or entity seeking economic advice from OFMO and any information compiled
by OFMO in response to submissions, may be kept confidential.
(2) In order to protect confidentiality of
such items, applicants must submit a written request to OFMO at the time of the
Eligibility Application to withhold its information from disclosure on the
grounds that it constitutes trade secrets, proprietary information or that the
information, if disclosed, would cause substantial injury to the competitive
position of the applicant. Applicants must specify the information for which
they are seeking protection along with clearly stated reasons for the requested
exception.
(3) OFMO reserves the
right to determine whether the information submitted by the applicant will be
withheld from disclosure. OFMO will notify the applicant of any requests for
disclosure and notify the applicant as to whether the information will be
disclosed.
(m) High
Impact Production Requirements: Due to the size of potential rebates and
considerable number of variables in High Impact Productions, the Executive
Director is authorized to negotiate and finalize High Impact Production
Requirements as part of the High Impact Production Eligibility Application
process. High Impact Production Requirements can be tailored to the type and
scope of the Production, and may carry additional incentives, provided these
requirements and incentives do not contradict statutory provisions of the ACT.
Applicants would be required to meet the High Impact Production Requirements in
order for the Final Application to be approved.
