Can the tax credits be recaptured (taken back) by Oklahoma?
Under certain circumstances, the tax credits can be recaptured by Oklahoma. IEG’s structure attempts to protect against recapture through use of the following: • Private Letter Ruling. IEG has secured a private letter ruling from the Oklahoma Tax Commission that addresses the generation of the tax credits, the allocation of the tax credits, and the application of the tax credits. • Interest in Property. IEG and the company producing the motion picture enter into an agreement, pursuant to which the parties agree on IEG’s right to an interest in the project, until such time as the compliance requirements by the company have been met and IEG is confident the tax credits will not be subject to recapture. • Compliance Oversight: IEG will maintain compliance oversight of each company to ensure that all requirements under the applicable statute are met and that credits will not be subject to recapture. Q: What if the motion picture is a failure? A: The tax credits are not affected by the moti
