{"data":{"id":"us-ky/krs-154.61-030","jurisdiction":"us-ky","citation":"KRS 154.61-030","heading":"Applications -- Tax incentive agreements -- Fee -- Approval -- Cost","body":"report -- Review.\n(1) An eligible company shall, prior to incurring any expenditure for which recovery\nwill be sought, file an application for tax incentives wit h the office. The application\nshall include:\n(a) The name and address of the applicant;\n(b) Verification that the applicant is a Kentucky-based company;\n(c) The preliminary production script or a detailed synopsis of the script;\n(d) The locations where the filming or production will occur;\n(e) The anticipated date on which filming or production shall begin in Kentucky;\n(f) The anticipated date on which the applicant will complete incurring\nexpenditures in Kentucky;\n(g) The total anticipated qualifying expenditures;\n(h) The total anticipated qualifying payroll expenditures for resident and\nnonresident above-the-line crew by county;\n(i) The total anticipated qualifying payroll expenditures for resident and\nnonresident below-the-line crew by county;\n(j) The address of a Kentucky location at which records of the production will be\nkept;\n(k) An affirmation that if not for the incentive offered under this subchapter, the\neligible company would not film or produce the production in the\nCommonwealth; and\n(l) Any other information the office may require.\n(2) The office shall notify the eligible company within thirty (30) days after receiving\nthe application that:\n(a) The application is complete; or\n(b) Additional information is required.\n(3) Upon receipt of the application and any additional information submitted by the\noffice and cabinet, the council shall consider all submitted information and, if\nappropriate, authorize the execution of a tax incentive agreement between the\ncouncil and the approved company, if the amount of anticipated tax credit from the\napplication would not make the total tax credit approved for the calendar year\nexceed the annual tax credit cap under KRS 154.61-020(4).\n(4) The tax incentive agreement shall include the following provisions:\n(a) The duties and responsibilities of the parties;\n(b) A detailed description of the motion picture or entertainment production for\nwhich incentives are requested;\n(c) The anticipated qualifying expenditures and qualifying payroll expenditures\nfor resident  and nonresident above -the-line and below -the-line crews by\ncounty;\n(d) The minimum combined total of qualifying expenditures and qualifying\npayroll expenditures necessary for the approved company to qualify for\nincentives;\n(e) That the approved company shall:\n1. Begin filming or production in Kentucky within one hundred eighty\n(180) days of approval by the council; and\n2. Complete production in Kentucky within two (2) years of their\nproduction start date;\n(f) That the motion picture or entertainment produc tion shall not include obscene\nmaterials and shall not negatively impact the economy or the tourism industry\nof the Commonwealth;\n(g) That the execution of the agreement is not a guarantee of tax incentives and\nthat actual receipt of the incentives shall b e contingent upon the approved\ncompany meeting the requirements established by the tax incentive\nagreement;\n(h) That the approved company shall submit to the office and cabinet within one\nhundred eighty (180) days of the completion of production in Kentuck y for\nthe motion picture or entertainment production:\n1. A detailed cost report of the qualifying expenditures and qualifying\npayroll expenditures;\n2. Certified audit; and\n3. The latest version of the production script at the time of cost report\nsubmission;\n(i) That the approved company shall provide the office and cabinet with\ndocumentation that the approved company or the associated loan -out entity\nhas withheld income tax as required by KRS 141.310 or the individual income\ntax rate imposed by KRS 141.020 on all qualified payroll expenditures for\nwhich an incentive under this subchapter is sought;\n(j) That, if the cabinet determines that the approved company has failed to\ncomply with any of its obligations under the tax incentive agreement:\n1. The council m ay deny the incentives available to the approved\ncompany;\n2. Both the council and the Department of Revenue may pursue any\nremedy provided under the tax incentive agreement;\n3. The council may terminate the tax incentive agreement; and\n4. Both the council and the Department of Revenue may pursue any other\nremedy at law to which it may be entitled;\n(k) That the cabinet and the Department of Revenue shall monitor the tax\nincentive agreement;\n(l) That the approved company shall provide to the cabinet and the Department\nof Revenue all information necessary to monitor the tax incentive agreement;\n(m) That the council may share information with the Department of Revenue and\nthe Interim Joint Committee on Appropriations and Revenue or any other\nentity the cabinet determines is necessary for the purposes of monitoring and\nenforcing the terms of the tax incentive agreement;\n(n) That the motion picture or entertainment production shall contain an\nacknowledgment that the motion picture or entertainment production was\nproduced or filmed in the Commonwealth of Kentucky;\n(o) That the approved company shall include screen credits in its final production,\nindicating the approved company received tax incentives from the\nCommonwealth of Kentucky;\n(p) Terms of default;\n(q) The method and procedures by which the approved company shall request and\nreceive the incentive provided under KRS 141.383 and 154.61-020;\n(r) That the approved company may be required to pay an administrative fee as\nauthorized under subsection (5) of this section;\n(s) The approved company may be required to pay a fee of two thousand dollars\n($2,000) for ex penses incurred as a result of preparation of the tax incentive\nagreement; and\n(t) Any other provisions deemed necessary or appropriate by the parties to the tax\nincentive agreement.\n(5) The council may require the approved company to pay an administrative  fee, the\namount of which shall be established by administrative regulation promulgated in\naccordance with KRS Chapter 13A. The administrative fee shall not exceed one -\nhalf of one percent (0.5%) of the estimated amount of tax incentive sought or five\nhundred dollars ($500), whichever is greater.\n(6) Prior to commencement of activity as provided in a tax incentive agreement, the tax\nincentive agreement shall be approved by the council. Following approval by the\ncouncil, the tax incentive agreement shall be s ubmitted to the Government Contract\nReview Committee established by KRS 45A.705 for review, as provided in KRS\n45A.695, 45A.705, and 45A.725.\n(7) The council shall notify the Department of Revenue following approval of an\napproved company. The notification  shall include the name of the approved\ncompany, the name of the motion picture or entertainment production, the estimated\namount of qualifying expenditures, the estimated date on which the approved\ncompany will complete filming or production in Kentucky, and any other\ninformation required by the department.\n(8) Within one hundred eighty days (180) days of completion of production in\nKentucky for the motion picture or entertainment production, the approved\ncompany shall submit to the council:\n(a) A detailed cost report of:\n1. Qualifying expenditures;\n2. Qualifying payroll expenditures for resident and nonresident above -the-\nline crew by county; and\n3. Qualifying payroll expenditures for resident and nonresident below -the-\nline crew by county;\n(b) The latest version of the production script available at the time of cost report\nsubmission; and\n(c) The certified audit.\n(9) (a) Cabinet staff shall review all information submitted for accuracy and shall\nconfirm that all relevant provisions of the tax incentive agree ment have been\nmet.\n(b) Upon confirmation that all requirements of the tax incentive agreement have\nbeen met, cabinet staff shall review the latest version of the production script\navailable at the time of cost report submission, and if they determine that  the\nmotion picture or entertainment production does not:\n1. Contain visual or implied scenes that are obscene; or\n2. Negatively impact the economy or the tourism industry of the\nCommonwealth;\nthe council shall forward the detailed cost report to the Depa rtment of\nRevenue for calculation of the refundable credit.\n(10) The Department of Revenue shall:\n(a) Verify that the approved company withheld the proper amount of income tax\non qualifying payroll expenditures; and\n(b) Notify the council of the total amount of refundable credit available on\nqualifying expenditures and qualifying payroll expenditures.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58154","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:57Z","sha256":"7f872f84bebd190c5b6f787f6fd849d3d2e421d2f7bab4a661dc0f13557fe9af","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154.61-020","next":"us-ky/krs-154.650"},"notice":"GroundRules: Original legal text. Not legal advice."}