{"data":{"id":"us-ky/krs-154.61-010","jurisdiction":"us-ky","citation":"KRS 154.61-010","heading":"Definitions for subchapter.","body":"As used in this subchapter:\n(1) \"Above-the-line production crew\" means employees involved with the production\nof a motion picture or entertainment production whose salaries are negotiated prior\nto commencement of production, such as actors, directors, producers, and writers;\n(2) \"Animated production\" means a nationally distributed feature -length film created\nwith the rapid display of a sequence of images using 2 -D or 3 -D graphics of\nartwork or model positions in order to create an illusion of movement;\n(3) \"Approved company\" means an elig ible company approved for incentives provided\nunder KRS 141.383 and 154.61-020;\n(4) \"Below-the-line production crew\" means employees involved with the production\nof a motion picture or entertainment production except above -the-line production\ncrew. \"Below-the-line production crew\" includes but is not limited to:\n(a) Casting assistants;\n(b) Costume design;\n(c) Extras;\n(d) Gaffers;\n(e) Grips;\n(f) Location managers;\n(g) Production assistants;\n(h) Set construction staff; and\n(i) Set design staff;\n(5) \"Cabinet\" means the Cabinet for Economic Development;\n(6) \"Certified audit\" means an audit that:\n(a) Contains production-related expenditures;\n(b) Is completed within one hundred eighty (180) days of the completion of\nproduction in Kentucky; and\n(c) Is conducted in accordance with the office's standards established by\nadministrative regulations promulgated in accordance with KRS Chapter 13A,\nincluding the adoption of expenditure sampling procedures;\n(7) \"Commonwealth\" means the Commonwealth of Kentucky;\n(8) \"Compensation\" means:\n(a) Compensation included in adjusted gross income as calculated in KRS\n141.019; and\n(b) The following:\n1. Employer-paid payroll taxes;\n2. Union and guild benefits;\n3. Workers' compensation insurance premiums;\n4. Payroll service fees; and\n5. Qualifying per diem;\n(9) \"Continuous film production\" means a motion picture or entertainment production\nthat:\n(a) 1. Has a projected minimum spend of ten million dollars ($10,000,000) for\nqualifying expenditures and qualifying payroll expenditures, which may\nbe a prorated amount based on the total budget of the production; and\n2. Has a minimum of fifty percent (50%) of the funds available and the\nability to raise the remaining funds necessary to complete the filming\nand production, which may be verified by:\na. Bank statements or other financial documents; or\nb. A fundraising plan at the request of the office;\n(b) Demonstrates a distribution contract for each motion or entertainment\nproduction; and\n(c) Maintains:\n1. An apprenticeship program or on -the-job training program as defined in\nKRS 343.010; or\n2. Partners with a film studies program with an accredited institution of\npostsecondary education located in the Commonwealth;\n(10) \"Council\" means the Kentucky Film Lea dership Council created in KRS 154.12 -\n282;\n(11) \"Documentary\" means a production based upon factual information and not\nsubjective interjections;\n(12) \"Eligible company\" means any person that intends to film or produce a motion\npicture or entertainment production in the Commonwealth;\n(13) \"Employee\" has the same meaning as in KRS 141.010, and, for purposes of this\nsubchapter, also may include the employees or independent contractors of an\napproved company or the employees of a loan -out entity engaged by an  approved\ncompany if they meet the requirements of KRS 141.310;\n(14) \"Employer-paid payroll taxes\" means the tax paid by an approved company as an\nemployer under the Federal Insurance Contributions Act, 26 U.S.C. sec. 3101 et\nseq., and the approved company 's share of contributions required under KRS\nChapter 341;\n(15) \"Feature-length film\" means a live-action or animated production that is:\n(a) More than thirty (30) minutes in length; and\n(b) Produced for distribution in theaters or via digital format, including broadcast,\ncable, and streaming;\n(16) \"Heritage county\" means a county where the county population ranking determined\nby the cabinet under KRS 154.21 -017 scores greater than or equal to ninety -seven\n(97);\n(17) \"Industrial film\" means a business -to-business film that may be viewed by the\npublic, including but not limited to videos used for training or for viewing at a trade\nshow;\n(18) \"Kentucky-based company\" has the same meaning as in KRS 164.6011;\n(19) \"Loan-out entity\" means a corporation, partnershi p, limited liability company, or\nother entity through which an artist or other person is loaned out to perform services\nfor the approved company. A loan -out entity shall be registered and in good\nstanding with the Kentucky Secretary of State. Notwithstandi ng the business\norganization, the loan-out entity and all employees of and other persons performing\nservices for the loan -out entity shall be subject to all applicable provisions of the\nKentucky personal income tax and any applicable payroll or other tax provisions;\n(20) (a) \"Motion picture or entertainment production\" means:\n1. The following if filmed in whole or in part, or produced in whole or in\npart, in the Commonwealth:\na. A feature-length film;\nb. A television program;\nc. An industrial film;\nd. A documentary;\ne. A video game;\nf. A music video; or\ng. A commercial; or\n2. A national touring production of a Broadway show produced in\nKentucky.\n(b) \"Motion picture or entertainment production\" does not include the filming or\nproduction of obscene material or television coverage of news or athletic\nevents;\n(21) \"Obscene\" has the same meaning as in KRS 531.010;\n(22) \"Office\" means the Kentucky Film Office created in KRS 154.12-280;\n(23) \"Payroll service fees\" means administrative fees paid by an approved company to a\nthird-party payroll service company providing Kentucky -based payroll processing\nfor above-the-line and below-the-line production crew members;\n(24) \"Person\" has the same meaning as in KRS 141.010;\n(25) (a) \"Qualifying expenditure\" means expenditures made in the Commonwealth for\nthe following if directly used in or for a motion picture or entertainment\nproduction:\n1. The production script and synopsis;\n2. Set construction and operations, wardrobe, accessories, and related\nservices;\n3. Lease or rental of real property in Kentucky as a set location;\n4. Photography, sound synchronization, lighting, and related services;\n5. Editing and related services;\n6. Rental of facilities and equipment;\n7. Vehicle leases;\n8. Food; and\n9. Accommodations.\n(b) \"Qualifying expenditure\" does not include:\n1. Kentucky sales and use tax paid by the approved company on the\nqualifying expenditure; or\n2. Distribution expenses;\n(26) \"Qualifying payroll expenditure\" means compensation paid to above -the-line crew\nand below -the line crew while working on a motion picture or entertainment\nproduction in the Commonwealth if the compensation is for services performed in\nthe Commonwealth;\n(27) \"Qualifying per diem\":\n(a) Means:\n1. Meal and incidental allowance per diems, including those not taken on\nset, in the amounts established by the United States General Services\nAdministration, if incurred in the Commonwealth; and\n2. Hotel and other overnigh t living accommodations per diems, in the\namounts established by the United States General Services\nAdministration, if incurred in the Commonwealth; and\n(b) Includes any amounts that:\n1. Exceed the limits in paragraph (a)1. and 2. of this subsection; and\n2. Are included in taxable compensation and subject to the withholding\nrequired under KRS Chapter 341;\n(28) \"Resident\" has the same meaning as in KRS 141.010;\n(29) \"Secretary\" means the secretary of the Cabinet for Economic Development;\n(30) \"Tax incentive  agreement\" means the agreement entered into pursuant to KRS\n154.61-030 between the council and the approved company;\n(31) \"Television program\" means any live -action or animated production or\ndocumentary, including but not limited to:\n(a) An episodic series;\n(b) A miniseries;\n(c) A television movie; or\n(d) A television pilot;\nthat is produced for distribution on television via broadcast, cable, or any digital\nformat, including but not limited to cable, satellite, internet, or mobile electronic\ndevices;\n(32) \"Union and guild benefits\" means any mandatory contributions to pension, health,\nand welfare plans paid by an approved company or a third -party payroll service\ncompany pursuant to a union or guild agreement entered into for the provision of\nservices by above-the-line or below-the-line production crew members; and\n(33) \"Workers' compensation insurance premiums\" means premiums paid by an\napproved company or a third -party payroll service company for the provision of\nworkers' compensation covering above -the-line or below -the-line production crew\nmembers.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58152","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:57Z","sha256":"15b8c7767ab5d5ce11ade950d35b6fbccfbc87b7a3c56cc939be877ce5463da4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.600","next":"us-ky/krs-154.61-020"},"notice":"GroundRules: Original legal text. Not legal advice."}