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Incentives

Production Incentives Database

Incentive Type Non-Transferable Refundable Tax Credit
Spend 30-35%
Above the Line Residents 35%
Above the Line Nonresidents 30%Restrictions apply, see Additional Information
Below the Line Residents 35%
Below the Line Nonresidents 30%Restrictions apply, see Additional Information
Bonus 5% on expenses incurred in an Enhanced Incentive County
http://www.thinkkentucky.com/kyedc/pdfs/KBIEnhancedCounties.pdf
Project Criteria For 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
$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 instate spend (qualifying expenditures and qualifying payroll expenditures) must... +Read More
Loanout Registration Required Yes
Loanout Withholding No
Annual Funding Caps 75,000,000
Project Caps 10000000
Minimum Spend $20,000-$250,000
Sunset Date None
Audit Requirements
attestation from a licensed CPA is required

Getting Started
KY is a case by Case program.

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 (no ceiling)

Application fee; $250-$1000 based on budget size

Legal Fees; amount ranging from 1,000-5,000 depending on complexity of contract with the state.

All must be paid at the time of filing application

Pre Application - 45 days the next KEDFA meeting (state councel that approves projects on a monthly basis)

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.
-50% of proof of financing is required

Allow 30 days for the film office notification.

application must be submitted one month before the next Kentucky authority meeting (monthly)

Must have a KY expense within 6 months of approved application

Project must complete within 2 years of approval
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
The Approved Company will be required to certify the Production Start Date and Production Completion Date with the Cabinet. Within 180 days of the Production Completion Date, the Approved Company shall submit a certified and detailed cost report of the Qualifying Expenditures, Qualifying Payroll Expenditures, and final shooting script to the Cabinet. Upon confirmation that all requirements of the tax incentive agreement have been met, Cabinet staff will forward the detailed cost report to the Department of Revenue for calculation of the refundable tax credit. The Department of Revenue will notify Cabinet staff of the total amount of refundable tax credit
available to the Approved Company. Cabinet staff will send a notice to the Approved Company of the amount of the certified tax credit available.
Additional Information
On or after the effective date of the new rules Act, and until July 1, 2022, the
Film department shall not accept any new application for the Sales and Use tax exemption

Project Cap of $10M per calendar year
Must
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.

Loan outs must either withhold or pay a calculated amount

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: 07/01/2024

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 [email protected].