Kentucky film tax incentive

What Kentucky actually pays

A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

New to the mechanics? Tax credit vs rebate vs grant and What counts as qualified spend.

What qualifies

Eligible: feature-length films (>30 min), television programs (incl. episodic/miniseries/TV movie/pilot), industrial films, documentaries, and national touring Broadway shows produced in KY. Must begin filming within 6 months of KEDFA approval and complete within 2 years of start. Filming/production must occur in KY; qualifying expenditures must be paid to Kentucky vendors. Excludes obscene material, news/athletic event coverage, and productions that negatively impact the state's economy or tourism. Expenditures to commonly-owned/financially-interested parties do not qualify. Company must certify the production would not occur in KY but for the incentive. 'Continuous film production' status (lifts the 10% per-company cap) requires $10M+/yr budget, $1.5M+/production, 50%+ funding secured, distribution contract per production, 12+ filming days/production, and an apprenticeship/training program or partnership with an accredited KY film studies program.

• Pilot
• Animation
• Commercial
• Miniseries
• Documentary
• Music Video
• Scripted TV
• Feature Film
• Streaming / SVOD
• Video Game / Interactive

Uplifts

Rate bumps that stack on the base program, up to its published ceiling. Uplifts are the most commonly missed money in any program, because qualifying for one is usually a location or scheduling decision made long before anyone is thinking about submittal.

• Kentucky-Resident Payroll Rate (+5 pts: 35% on resident payroll)

  +5% (30% to 35%) on qualifying payroll paid to KENTUCKY-RESIDENT ATL and BTL crew only (ATL capped $1M/person), in any county incl. commercials. Narrow-base: never lifts non-payroll spend or non-resident wages. KRS 154.61-020(5)(d)2. The heritage-county / continuous-production path (35% on all legs) is modeled separately in KY03 - do not stack; KY00 Max 35 already includes this.

  Minimum spend: N/A — set by applicant type (see KY00, KY02)

  +5%–35%

• Heritage County / Continuous Production (+5 pts on expenditures & non-resident payroll)

  TWO legs, not one: a qualified-spend leg plus a separate wage-subset leg on non-resident payroll. KRS 154.61-020(5)(c)2.a APPORTIONS the enhancement for a partial heritage-county shoot rather than applying it to the whole spend.

  Minimum spend: $200K

  +5%

Other state programs

Separate incentives Kentucky runs alongside the headline program. Each has its own base, rules and application — the rates here are the programs' own, not additions to the rate above.

• Kentucky Entertainment Incentive: Kentucky-Based Company Terms ($200K minimum)

  NOT a separate rate - same 30%/35% legs as KY00. Kentucky-based company status (KRS 164.6011 definition) only LOWERS the minimum combined spend: $200,000 vs $400,000 (feature/TV/industrial/video game/music video); $10,000 vs $20,000 (documentary); commercials $200,000 and Broadway tours $20,000 for everyone. KRS 154.61-020(3). Narrow-eligibility threshold, not an uplift.

  Minimum spend: $200,000 for Kentucky-based companies ($400,000 otherwise)

  30%–35%

• Motion Picture Industry sales and use tax refundable credit (KRS 139.538)

  6%

• Transient room tax exemption for stays of 30+ consecutive days (state and local)

  Minimum spend: N/A

How to apply

Apply through the Kentucky Cabinet for Economic Development (KEDFA), not the DOR. (1) Pre-application: contact Cabinet staff ~45 days before the target monthly KEDFA meeting to discuss eligibility; staff issues the application. (2) Submit completed application + attachments (script/synopsis, locations, dates, anticipated qualifying expenditures and resident/nonresident ATL & BTL payroll by county, KY records address, proof of funding, distribution info, 'but-for' affirmation, application fee) ~15 days before the meeting — and at least 30 days before incurring any expenditure. (3) Pay administrative fee (0.5% of incentive sought or $500, whichever greater) + legal fees before approval. (4) KEDFA votes at its monthly meeting (last Thursday of month, except Nov/Dec). (5) Begin filming within 6 months of approval; complete within 2 years of start. (6) Within 180 days of completion, submit final script + certified detailed cost report with withholding documentation; DOR calculates the refundable credit and the Cabinet certifies the amount. Contact: CED.KEI@ky.gov / (502) 564-7670.

Common questions

What is the Kentucky film tax incentive rate?

Kentucky offers 30% to 35% on qualified in-state spend through the Kentucky Entertainment Incentive (KEI) — Film Tax Credit. It is a refundable credit. A credit that pays out in cash when it exceeds what you owe the state. Close to a rebate for most independent productions.

What is the minimum spend for the Kentucky film incentive?

$200K. Falling under the minimum is a total loss of the benefit, not a partial one — it is worth confirming the threshold before locking a budget.

What uplifts are available in Kentucky?

Kentucky offers 2 uplifts on its headline program: Kentucky-Resident Payroll Rate (+5 pts: 35% on resident payroll), Heritage County / Continuous Production (+5 pts on expenditures & non-resident payroll). Uplifts are usually decided by scheduling and location choices made months before submittal.

Is the Kentucky film incentive transferable or refundable?

Refundable — the excess over your state tax liability is paid out in cash.

Verify before you budget. These figures come from our own incentives database and each shows when it was last reviewed — but programs change between funding cycles and legislative sessions. Confirm with the film office, or ask us, before a number goes into a budget.