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Kentucky made changes to the corporation and personal income tax credits for film production expenses in the state that:
- extend credit eligibility to qualifying expenses in the state to film or produce video
games, music videos, or commercials; - expand qualifying payroll expenses to include employer-paid payroll taxes, union and
guild benefits, workers' compensation insurance premiums, payroll service fees, and
meals, hotel, and other overnight accommodations subject to federal per diem
allowance limits; - increase the minimum expense spending threshold to $200,000 for Kentucky-based
production companies and $400,000 for out-of-state production companies; - set the minimum expense spending threshold for commercials at $200,000;
- permit the carryforward to the next year of the remaining balance from the $75 million
annual credit for companies with high-impact motion pictures, continuous film
productions, or entertainment productions; - require filming or production in Kentucky to begin within 180 days of credit approval;
and - authorize a $2,000 fee for preparation of the tax incentive agreement with the
approved company.
Credit applicants must also submit a certified audit of expenses within 180 days after completion of the film or production.
Ch. 194 (S.B. 324), Laws 2026, effective July 15, 2026
The information contained herein is general in nature and is not intended and should not be construed as legal, accounting, or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or another tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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