Oklahoma Film or Music Project Credit (you will also need Form 511CR)

Film or Music Project Credit (you will also need Form 511CR)
2014 Form 562 Film or Music Project Credit
Film or Music Project Credit
Name as Shown on Return (Investor)

FORM

State Of Oklahoma

562

2
0
1
4

Social Security Number or
Federal Employer Identification Number

General Information
For tax years ending before January 1, 2015, a credit is allowed equal to 25% of the amount of profit made from an
investment in an existing Oklahoma film or music project produced after July 1, 2005. To qualify, the investment must
be with the production company that paid for production costs of the project, and the profit earned shall be reinvested
with the production company to pay for production costs of a new Oklahoma film or music project.

Part 1 – Original Investment
1. Date of Investment
2. Name of Production Company
3. Federal Employer
Identification Number

4. Date Production Began

5. Name and Description of Film or Music Project

6. Amount of Investment ...........................................
7. Profit on Original Investment....................................

Part 2 – Reinvestment of Profits
1. Date of Reinvestment
2. Name and Description of Film or Music Project

3. Amount of Reinvestment ......................................

Part 3 – Credit Computation
1. Amount of Reinvestment (Part 2, line 3) ...............
2. Rate ......................................................................
3. Amount of Credit (multiply line 1 by line 2; enter here
and on Form 511CR ......................................................

25%

2014 Form 562 - Page 2

Film or Music Project Credit

68 Oklahoma Statutes (OS) Sec. 2357.101

Instructions
Prepare a separate Form 562, for each investment in an Oklahoma film or music project, in the tax year in which the profit
is reinvested.
Part One:
Enter information for your investment in an existing Oklahoma film or music project. The investment must have been with
a production company and used to pay for production costs.
Line 1: Enter the date on which you made the investment in an existing Oklahoma film or music project.
Line 2: Enter the name of the production company with which the investment was made.
Line 3: Enter the Federal Identification Number of the production company with which the investment was made.
Line 4: Enter the date production of the existing Oklahoma film or music project began.
Line 5: Enter the name and description of the existing Oklahoma film or music project in which you invested with the
production company listed on line 2.
Line 6: Enter the amount of your investment.
Line 7: Enter the profit you received from the project listed on line 5. “Profit” means the amount made by the taxpayer to
be determined as follows:
a) the gross revenues less gross expenses, including direct production, distribution and marketing costs and an
allocation of indirect overhead costs, of the film or music project shall be multiplied by,
b) a ratio, the numerator of which is Oklahoma production costs and the denominator of which is total production
costs which shall be multiplied by,
c) the percent of the taxpayer’s taxable income allocated to Oklahoma in a taxable year, and
d) subtract from the result of the formula calculated from steps a through c of this paragraph the profit made by a
taxpayer from investment in an existing Oklahoma film or music project in previous taxable years. Profit shall
include either a net profit or net loss.
Part Two:
Enter information for your reinvestment of the profits, as shown on Part One, line 7. The reinvestment must be in a new
Oklahoma film or music project with the same production company as listed in Part One, line 2. The investment must be
used to pay for production costs.
Line 1: Enter the date when your profit was reinvested into a new Oklahoma film or music project. The date must be
during this tax year.
Line 2: Enter the name and description of the new Oklahoma film or music project in which you invested your profit.
Line 3: Enter only the portion of your profit you have reinvested in the new Oklahoma film or music project with the
production company listed in Part One, line 2.
Part Three:
The credit is 25% of the profit which has been reinvested to pay for the production costs of a new Oklahoma film or music
project.

2014 Form 562 - Page 3

Film or Music Project Credit
68 OS Sec. 2357.101

Definitions
“Existing Oklahoma film or music project” means a film or music project produced after July 1, 2005.
“Investment” means costs associated with the original production company. Film or music projects acquired from an
original production company do not qualify as investment.
“Film” means a professional single media, multimedia program or feature, including, but not limited to, national advertising
messages that are broadcast on a national affiliate or cable network, fixed on film or digital video, which can be viewed or
reproduced and which is exhibited in theaters, licensed for exhibition by individual television stations, groups of stations,
networks, cable television stations or other means or licensed for home viewing markets. The term does not include child
pornography as defined in 21 OS Sec. 1024.1(A) or obscene material as defined in 21 OS Sec. 1024.1(B)(1).
“Music project” means a professional recording released on a national or international level, whether via traditional
manufacturing or distributing or electronic distribution, using technology currently in use or future technology including, but
not limited to, music CDs, radio commercials, jingles, cues, or electronic device recordings.
“Production company” means a person who produces a film or music project for exhibition in theaters, on television or
elsewhere.
“Oklahoma production cost” means that portion of total production costs which are incurred with any qualified vendor.
“Total production cost” includes, but is not limited to:
•

wages or salaries of persons who have earned income from working on a film or music project in this state,
including payments to personal services corporations with respect to the services of qualified performing artists,
as determined under Section 62(a) of the Internal Revenue Code,

•

the cost of construction and operations, wardrobe, accessories and related services,

•

the cost of photography, sound synchronization, lighting and related services,

•

the cost of editing and related services,

•

rental of facilities and equipment, and

•

other direct costs of producing a film or music project.

“Qualified vendor” means an Oklahoma entity which provides goods or services to a production company and for which:
•

fifty percent (50%) or more of its employees are Oklahoma residents, and

•

fifty percent (50%) or more of gross wages, as reported on Internal Revenue Service Form W-2 or Form 1099, are
paid to Oklahoma residents.

For purposes of this “Qualified vendor” definition, an employee shall include a self-employed individual reporting income
from a qualified vendor on Federal Form 1040.

Notice
Tax credits transferred or allocated must be reported on Oklahoma Tax Commission (OTC) Form 569. Failure to file Form
569 will result in the affected credits being denied by the OTC pursuant to 68 OS Sec. 2357.1A-2.