The introduction of a robust film incentive program has transformed Oklahoma’s entertainment industry, generating substantial economic benefits and creating high-paying jobs. A recent study reveals the significant surge in production activities and highlights the potential for further expansion if lawmakers continue to support this burgeoning sector.

Revitalizing Communities Through Film Production

Unveiling Economic Growth in the Entertainment Sector

The transformation of Oklahoma’s film and television landscape began with the implementation of the Filmed in Oklahoma Act (FIOA) in 2021. This legislative move marked a turning point by injecting $30 million into the state’s film rebate system. Prior to this, the industry was largely dormant, with an annual incentive of only $8 million, which barely registered as a catalyst for growth.The impact of the increased funding was immediate and profound. According to a comprehensive economic analysis conducted by RegionTrack, the incentivized spending skyrocketed from $31.8 million in fiscal year 2020 to over $187 million in fiscal year 2021—a six-fold increase. This surge translated into a direct economic impact exceeding $531 million for the state since the Act’s inception. From 2021 to 2023, the cumulative economic contribution of film and TV projects reached $484 million, averaging $161.3 million annually. Approximately 60% of this expenditure went directly to worker wages, while the remaining 40% funded purchases of goods and services. The average wage per job surged by two-thirds, reaching nearly $80,000, reflecting the high-quality employment opportunities created by the industry.

Sustaining Year-Round Production and Workforce Development

One of the key challenges facing the industry is maintaining consistent production throughout the year. Industry advocates emphasize the importance of increasing the current $30 million cap on film incentives to ensure continuous activity. Jill Simpson, executive director of the Oklahoma Film & Creative Industries Office, notes that without sufficient funds, productions cannot sustain year-round operations, leading to downtime and job losses.Simpson explains that when there’s not enough money to support ongoing projects, local film workers are forced to seek employment elsewhere. This disruption hinders workforce development and training programs. By expanding the incentive program, the state can attract more productions, thereby providing stable employment and fostering a skilled workforce capable of meeting the demands of the growing industry.

Competitiveness and Global Influence

Oklahoma’s film incentive program stands out in a highly competitive global market where both states and countries vie for filmmaking dollars. Joseph Chianese, senior vice president at Entertainment Partners, underscores the significance of sustaining or even increasing the current funding level. He points out that episodic television shows often require long-term commitments from locations, making a robust incentive program crucial for attracting such productions.Chianese cites examples like “The Pioneer Woman” in Pawhuska and “The Walking Dead” in Senoia, Georgia, to illustrate how sustained television production can revitalize small towns economically. These productions bring not only direct benefits but also indirect advantages through tourism and local business growth. For instance, Pawhuska has seen a surge in visitors eager to experience the attractions featured in “The Pioneer Woman,” demonstrating the far-reaching impact of film incentives.

Economic Recovery and Public Investment

The RegionTrack study also examined the financial returns generated by the film incentive program. For every dollar awarded, the state recovers 78 cents in tax revenue, and production companies spend a minimum of $3.33 on qualified expenditures within Oklahoma. Despite concerns from some economists about using public funds for entertainment-related projects, the data show that the film and TV industry generates tangible economic benefits.Mark C. Snead, president of RegionTrack, argues that while not all public investments yield full tax recovery, the film and TV sector offers unique advantages. It creates high-paying jobs and helps retain talent in Oklahoma, addressing the state’s longstanding issue of brain drain. By supporting this industry, Oklahoma can enhance its economic resilience and competitiveness on a national and global scale.