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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.
Incentives
Production Incentives Database
| Incentive Type | Non-Transferable Non-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 | 100,000,000 |
| Project Caps | None |
| Minimum Spend | $20,000-$250,000 |
| Sunset Date | None |
Audit Requirements
Getting Started
Applications are no longer accepted for the Fiscal year of 2018. Applications will be acceptable after July 1st, 2019.
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)
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.
- 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
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.
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: 05/01/2018
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].
Also Applies to:
| Animation |  |
| Commercials |  |
| Documentaries | |
| Game Shows | |
| Interactive | |
| Industrials | |
| Music Videos | |
| News | |
| Sports | |
| Reality TV | |
| Web Series | |
| = yes |
= no |
| = Contact Film Office for more Info | |
Last updated: 05/01/2018
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].