Production Incentives Database

Kentucky  

   
Incentive TypeNon-Transferable Refundable Tax Credit
Spend30-35%
Above the Line Residents35%
Above the Line Nonresidents30%Restrictions apply, see Additional Information
Below the Line Residents35%
Below the Line Nonresidents30%Restrictions apply, see Additional Information
Bonus 15% on expenses incurred in an Enhanced Incentive County
http://www.thinkkentucky.com/kyedc/pdfs/KBIEnhancedCounties.pdf
Project CriteriaFor non-Kentucky based production company following minimum instate spend (qualifying expenditures and qualifying payroll expenditures) must be met:

$250,000 minimum for a feature-length film, television program, or industrial film
$100,000 minimum for a commercial that is distributed regionally or nationally;
$20,000 minimum for a national touring production of a Broadway show;
$20,000 minimum instate spend for a documentary


For an approved company that is a Kentucky-based company(a business with its principal location of business in Kentucky or no less than 50% of its property and payroll located in Kentucky.) the following minimum... Read More
Loanout Registration RequiredYes
Loanout WithholdingNo
Annual Funding CapsNone
Project CapsNone
Minimum Spend$20,000-$250,000
Sunset DateNone

Kentucky Department of Travel & Tourism
500 Mero Street, 22nd Floor, Frankfort, KY 40601

Jay Hall, Deputy Commissioner
Phone: 502 564 4930
EmailWebsite

Also Applies To:
Animation
Commercials
Documentaries
Game Shows
Interactive
Industrials
Music Videos
News
Sports
Reality TV
Audit Requirements
The Finance and Administration Cabinet will verify the company has fulfilled all state tax liabilities. A CPA audit is not required, however it is suggested.

Getting Started
The Kentucky Film Office may require that the approved company pay an administrative fee of 0.5% of the estimated amount of the tax incentive or $500, whichever amount is greater

At least 30 days before incurring costs, submit a tax-incentives application that includes:
- The name and address of the applicant.
- Verification that the applicant is a Kentucky-based company.
- The production script or a detailed synopsis of the script.
- List of locations where the filming or production will occur.
- Anticipated production start and end dates.
- The total anticipated qualifying expenditures and payroll expenditures for residents and nonresidents above-the-line crew, by county.
- The total anticipated qualifying payroll expenditures for residents and nonresident below-the-line crew, by county.
- The address of a Kentucky location where the production records will be kept.
- An affirmation that if not for the production incentive the eligible company would not film or produce the production in the Commonwealth; and any other information the office may require.
Allow 30 days for the film office notification.

application must be submitted one month before the next Kentucky authority meeting (monthly)
Screen Credit Required
Yes
Company Registration
No
Sales Use Tax Relief
No
Hotel Occupancy Tax Relief
Yes
Local Vendors Qualify
Yes
Outside Vendors Qualify
No
Claiming Incentive
Within one hundred eighty days of motion picture or production completion submit a detailed cost report of:
- Qualifying expenditures
- Qualifying payroll expenditures for resident and nonresident above-the-line crew by county
- Qualifying payroll expenditures for resident and nonresident below the line crew by county; and
- The final script.
Additional Information
Compensation Cap: Qualifying payroll expenditures paid to above-the-line residents and nonresidents production crew are capped at $1 million in payroll expenditures per employee.

Max amount of incentive is 35%

The incentive amounts for productions which are filmed or produced in any Kentucky county other than in an enhanced incentive county is:
- 30 percent on qualifying expenditures
- 30 percent on qualifying payroll paid to above-the-line nonresidents
- 30 percent on qualifying payroll paid to below-the-line nonresidents
- 35 percent on qualifying payroll paid to above-the-line residents
- 35 percent on qualifying payroll paid to below-the-line residents


Production must begin within two years of the date the tax incentive agreement is executed and must be completed within four years of the executed tax incentive agreement.





Last updated: 10/17/2016
Production Incentive Disclaimer
The encapsulated production incentive information on this page is provided for general purposes only and should not be construed as tax advice. While we do our utmost to keep all information up to date, production incentives change often. The best source for incentive details is the film office itself. For more explanation or detail about the production incentive described here, please contact our resident production incentives expert at incentives@media-services.com.