Oklahoma film incentives have generated significant returns for the state economy, lawmakers were told Nov. 17.
“This incentive certainly seems to provide a fairly large return for the state’s minimal investments,” state Rep. John Wright, R-Broken Arrow, said.
Wright requested the legislative study that reviewed the incentive program today in the House Economic Development and Financial Services Committee.
Oklahoma’s film incentive program was first enacted in 2001 and modified in 2005, providing tax breaks to film productions shot in Oklahoma using local facilities and talent.
Since 2005, officials estimate film productions in Oklahoma have provided a combined economic impact of more than $135 million, with $43 million projected for fiscal year 2010 alone.
“Apparently, the incentives are really beginning to bear fruit in our local economy,” Wright said. “The true test of any incentive program is the return on investment. It appears the film incentive program has been money well spent.”
When “The Killer Inside Me,” starring Kate Hudson, was filmed in Oklahoma last summer, the production provided an economic impact of more than $5.1 million in return for a net rebate payout of approximately $71,000, according to the Oklahoma Film and Music Office.
Officials also noted many of the locations used by film productions are in rural Oklahoma, areas where growth has been limited and movie dollars provide a huge boost to the local economy.
The incentive program is currently capped at $5 million per year. However, state officials noted the program has been so successful that the cap has been reached and one potential production that would spend an estimated $13 million in Oklahoma may instead shoot in another state due to the incentive cap.
Nearly all states now provide similar incentive packages, increasing the competition for film productions.
“The film incentive program has proven an effective investment tool that could be improved to provide even greater results,” Wright said. “Because of the current budget climate, we must carefully review all existing tax incentive programs to ensure working families’ tax dollars are not needlessly wasted.”