|Incentive Type||Non-Transferable Non-Refundable Tax Credit|
|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
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|
|Annual Funding Caps||75,000,000|
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)
- 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.
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
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: 08/04/2021
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].