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.

Frequently Asked Questions

What is the Kentucky film tax credit?

Kentucky offers a 30-35% tax credit, structured as a Refundable Tax Credit, with an annual program cap of $75,000,000. The program is designed to attract film and television productions by offsetting a portion of qualifying local expenditures.

How much is the Kentucky film tax credit?

The Kentucky tax credit is 30-35%, structured as a Refundable Tax Credit. The exact rate your production qualifies for may depend on factors such as local hiring, filming location, and production type.

What is the minimum spend to qualify for the Kentucky film tax credit?

Productions must meet a minimum spend threshold of $250,000 (film/TV) / $20,000 (docs/Broadway) in Kentucky to be eligible. Spend typically includes below-the-line costs incurred within the region, though qualifying criteria vary by program — consult the local film office for the full eligibility rules.

Is there a cap on the Kentucky film tax credit?

Yes. The Kentucky program has a program-wide cap of $75,000,000 and a per-project cap of None (per-person cap: $1M above-the-line). Productions should apply early, as allocations can be limited.

How do I apply for the Kentucky film tax credit?

Productions typically apply through the Kentucky film office or the relevant government agency. Applications are generally submitted before principal photography begins, with final certification issued after production is complete and qualified spend is audited. Check the official film office website for current application guidelines, deadlines, and required documentation.