Oklahoma’s Film Tax Rebate: Huge Cash, Minimal Scrutiny!
OKLAHOMA CITY — Navigating Oklahoma’s filmmaking tax rebate might seem like a daunting journey through a maze of red tape, but the truth is, when the cameras stop rolling and the credits begin to roll, the state’s oversight in cutting those lucrative checks can feel surprisingly laid-back.
Recently, we had an enlightening conversation with Jeanette Stanton, the driving force behind the OK Film + Music Office. We dove into the intricate web of Oklahoma’s film tax rebate program, a vital lifeline that supports everything from indie gems to blockbuster hits like “Twisters” and “Killers of the Flower Moon.” However, the inner workings of this financial boost remain a bit of a mystery, raising eyebrows about the level of scrutiny applied to these substantial state funds.
It’s crucial to clarify here: this isn’t just some tax break or credit; it’s a direct payment to filmmakers following the completion of their projects, which can quickly escalate into hundreds of thousands, if not millions, of taxpayer dollars.
In our follow-up with Stanton, we uncovered that the final production reports submitted by the filmmakers, which detail everything from crew figures to expenditures, undergo minimal direct state verification. Instead, this critical responsibility falls on independent accountants hired by the productions themselves.
A Heavy Burden on Third-Party Accountants
When the dust settles on an approved production, the producers file their reports alongside an accountant’s verification. This is not an internal state process; it’s strictly a third-party affair.
“The CPA’s role is to ensure everyone qualifying is a local hire, and they provide the necessary reports,” Stanton explained. “We rely heavily on these CPAs, as they bear the responsibility for verifying compliance with our requirements.”
These third-party accountants play a pivotal role, verifying the employment of sometimes as many as 1,600 crew members for a single blockbuster like “Killers of the Flower Moon.” Once the Film + Music Office receives the detailed reports from both the producers and their accountants, they essentially cross-check the information and determine the rebate amount to be issued.
Once everything checks out, those rebate payments are dispatched to the Oklahoma Tax Commission, with checks typically hitting the mail within a mere two weeks.
“It’s all about ensuring that the CPA’s report aligns with the production report,” Stanton added. “If there’s a discrepancy, we have some questions to address.”
The Reality Check: “We’re Not Auditors”
While the Film + Music Office occasionally visits sets, their mission is not about overseeing or auditing the productions. “We’re not an auditing body,” Stanton emphasizes. “We’re here to foster a collaborative atmosphere for vendors and crews alike.”
“We’re not auditing, no.”
— Jeanette Stanton, Director of the OK Film + Music Office
At the heart of this tax rebate program lies the local workforce. Stanton characterizes the initiative as more of a “jobs program” designed to bolster employment opportunities in Oklahoma rather than simply producing successful films.
The rebate amounts hinge primarily on the number of local Oklahomans hired, the duration of those jobs, and the total production expenditures in Oklahoma, ensuring that the state’s financial support translates directly into job creation.
A Focus on Jobs
Stanton asserts that the most critical aspect of the Film + Music Office is guaranteeing that tax rebate funds are channeled into Oklahoman jobs. The belief is that if the application process is robust enough, it minimizes the need for extensive oversight after filming concludes.
“We wholeheartedly support productions utilizing this incentive,” Stanton concludes. “We can guide, we can recommend, but ultimately, we’re not a regulatory agency.”
If you have insights or tips on this topic or any others featured, feel free to reach out to the editor on Signal @BrettDOkc.56 or email — editor (at) freepressokc (dot) com.
