Kentucky

Pre-application Zoom call within 45 days of KEDFA meeting; file an application at least 30 days PRIOR to incurring any qualified expenditures for which recovery will be sought; prior to approval, pay a nonrefundable application fee (determined based on the size of budget) and an administration fee that is equal to 0.5% of the estimated tax credit sought or $500 whichever is greater; for a Kentucky-based production company (a business with its principal place of business in Kentucky or no less than 50% of its property and payroll located in Kentucky) meet the in-state minimum spend requirement of at least $125,000 for feature films/television, or $10,000 for documentaries, or $20,000 for a touring Broadway show; for a non-Kentucky-based production company, meet the in-state minimum spend requirement of at least $250,000 for feature films/television, or $20,000 for documentaries, or $20,000 for a touring Broadway show; begin filming or production in Kentucky within six months of approval; complete production in Kentucky within two years of the production start date; submit a detailed cost report within 180 days of the completion of production in Kentucky; and complete and submit a separate loan out affidavit (K-LOA) for every loan out company included in the detailed cost report. All payments made to any loan out company are subject to 4% Kentucky income tax withholding.

Qualified spend includes qualifying wages plus expenditures made in Kentucky for: set construction and operations, wardrobe, accessories, and related services; lease or rental of real property in Kentucky as a set location; photography, sound synchronization, lighting, and related services; editing and related services; rental of facilities and equipment; vehicle leases; food; and accommodations. Air travel, fringes, state and local taxes or nontaxable portion of per diem are not eligible. Expenses incurred prior to the filing of the signed Film Tax Incentive Agreement with the Legislative Research Commission do not qualify for the incentive.

This program is administered on a first-come, first-served basis. Kentucky offers a refundable tax credit equal to 30% or 35%. For projects filmed in whole or in part in any Kentucky county, other than an enhanced incentive county, the incentive is equal to 30% of: qualifying expenditures, wages paid to nonresident below-the-line crew, the first $1 million in wages paid to each nonresident above-the-line worker; 35% of wages paid to resident below-the-line crew; and the first $1 million in wages paid to each resident above-the-line worker. For projects filmed within an enhanced incentive county, the incentive is equal to 35% of: qualifying expenditures, wages paid to resident and nonresident below-the-line crew, and the first $1 million in wages paid to each resident and nonresident above-the-line worker. Twenty-five million of the seventy-five million calendar year funding is reserved for “continuous film production” projects, as defined. Productions may also apply with the Department of Revenue for the sales and use tax rebate.