Kentucky Doubles Down on $75 Million in Film Tax Credits

On March 14, 2025, Senate Bill 1 (“SB-1”) was delivered to the Governor of Kentucky. Upon signature, SB-1 would create the Kentucky Film Office (“Office”) as an attachment to the Kentucky Cabinet for Economic Development and create the Kentucky Film Leadership Council (“Council”) as an extension of the proposed Kentucky Film Office. The Office and Council would be responsible for, but not limited to, the following:

• Administering and overseeing the Kentucky Entertainment Incentive Program

• Coordinating with local and regional film commissions

• Marketing Kentucky as a location for film production

• Assisting film studios and workforce training programs to increase film-based employment

• Reviewing applications for tax incentives

• Developing strategies for attracting new film-based projects

SB-1 is subject to alteration during the legislative process. If approved, SB-1 would become effective July 1, 2025.

What Is the Kentucky Entertainment Incentive (KEI) Program?

The KEI program is designed to attract film and entertainment industry partners to Kentucky that will create job opportunities for residents and promote the creation of production and post-production infrastructure.

What Is the Benefit?

Eligible projects can receive up to 30% of qualifying capital and payroll expenditures as a refundable tax credit, up to $10,000,000 per year, claimed against Kentucky corporate, limited liability, or individual income tax. Projects located in enhanced counties or that make qualifying payroll expenditures to Kentucky-resident below-the-line production crew members can increase the benefit percentage to 35%. Annually, the KEI program can award a total of $75,000,000 in credits, with $25,000,000 set aside for companies with continuous film productions.

Who Is Eligible?

Eligibility includes any person or entity that intends to film or produce a feature-length film, television program, industrial film, documentary, or a national touring production of a Broadway show produced in Kentucky.

What Are the Requirements?

Requirements for the KEI program include:

• Production must start within six months of approval and end within two years of the start date

• Productions must meet the following minimum investment requirements based on variety of factors, as shown in

  Table 1:

KEI Program Awards - 2024 and 2025

In 2024, the KEI program approved $67 million in credits. As of February 2025, the KEI program has approved $26 million in credits.

Why Ryan?

Ryan’s Credits and Incentives team has a proven track record of working not only with Fortune 1000 clients but smaller developing companies in the retail and entertainment industry. Ryan tax professionals represent 90% of the retail companies and 82% of the real estate companies that comprise the Fortune 500. Additionally, Ryan has secured multimillion-dollar savings for world-class entertainment venues.

With more than 45 global tax services, Ryan’s expertise in every major tax area across every major industry is second to none. We go beyond the expected and look for the exceptions that benefit our clients.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.