Kentucky

Kentucky Entertainment Incentive Program (KEI)

Kentucky's screen incentive is the Kentucky Entertainment Incentive Program, commonly called KEI. The Kentucky Cabinet for Economic Development states that tax incentives awarded through KEI are refundable and nontransferable and may be claimed against the approved company's Kentucky corporate, limited liability, or individual income tax.

Incentive Rates

• 30% refundable credit on qualifying expenditures
• 35% on certain Kentucky resident labor and in enhanced incentive counties
• Credits are refundable but nontransferable
• Claimed against Kentucky corporate, limited liability, or individual income tax
• Approval required through the Kentucky Cabinet for Economic Development

Program Structure

The Kentucky Department of Revenue explains that the film industry tax credit is calculated based on varying percentages of qualified motion picture or entertainment production expenditures. The current working structure offers 30 percent on qualifying expenditures, with 35 percent available on certain Kentucky resident labor and in enhanced incentive counties.

The fact that the credit is nontransferable is important from a finance perspective, because it makes Kentucky structurally different from states like Georgia and Connecticut where transferability is a major part of monetization.

Strategic Notes for Producers

Kentucky is best understood as a refundable but nontransferable incentive market with meaningful rates and a clear local-economic-development orientation. It can be a strong option for projects that can root substantial production activity and local hiring in the Commonwealth, but its financing profile is somewhat different from jurisdictions where credits are more freely sold or assigned.

In practical terms, Kentucky's appeal rests on the combination of refundability, local labor incentives, and state-level approval through a dedicated economic development program. The 35 percent tier for resident labor in enhanced incentive counties creates a meaningful planning consideration for productions with flexibility around locations and crew structure.