As used in this subchapter:

1. (1)
2. (2)
3. (3)
4. (4)
5. (5)
6. (6)
7. (7)

8. (8) "Above-the-line production crew" means employees involved with the production of a motion picture or entertainment production whose salaries are negotiated prior to commencement of production, such as actors, directors, producers, and writers; "Animated production" means a nationally distributed feature-length film created with the rapid display of a sequence of images using 2-D or 3-D graphics of artwork or model positions in order to create an illusion of movement; "Approved company" means an eligible company approved for incentives provided under KRS 141.383 and 154.61-020; "Below-the-line production crew" means employees involved with the production of a motion picture or entertainment production except above-the-line production crew. "Below-the-line production crew" includes but is not limited to:

   1. (a) Casting assistants;
   2. (b) Costume design;
   3. (c) Extras;
   4. (d) Gaffers;
   5. (e) Grips;
   6. (f) Location managers;
   7. (g) Production assistants;
   8. (h) Set construction staff; and
   9. (i) Set design staff; "Cabinet" means the Cabinet for Economic Development; "Commonwealth" means the Commonwealth of Kentucky; "Compensation" means compensation included in adjusted gross income as defined in KRS 141.010; "Continuous film production" means a motion picture or entertainment production that:
   10. (a) 1. Has a projected budget of a minimum of ten million dollars ($10,000,000) per calendar year for qualifying expenditures and qualifying payroll expenditures allocated to all qualifying motion picture or entertainment productions to be filmed or produced in Kentucky, with a minimum of one million five hundred thousand dollars ($1,500,000) per production in Kentucky; and 2. Has a minimum of fifty percent (50%) of the funds available and the ability to raise the remaining funds necessary to complete the filming and production, which may be verified by: a. b. A fundraising plan at the request of the council; Bank statements or other financial documents; or
   11. (b) Demonstrates a distribution contract for each motion or entertainment production;
   12. (c) Films and produces a minimum of twelve (12) or more days per production within the Commonwealth; and
   13. (d) Maintains: 1. An apprenticeship program or on-the-job training program as defined in 2. KRS 343.010; or Partners with a film studies program with an accredited institution of postsecondary education located in the Commonwealth;
9. (9) "Council" means the Kentucky Film Leadership Council created in KRS 154.12- 282;
10. (10) "Documentary" means a production based upon factual information and not subjective interjections;
11. (11) "Eligible company" means any person that intends to film or produce a motion picture or entertainment production in the Commonwealth;
12. (12) "Employee" has the same meaning as in KRS 141.010, and, for purposes of this subchapter, also may include the employees or independent contractors of an approved company or the employees of a loan-out entity engaged by an approved company if they meet the requirements of KRS 141.310;

13. (13) "Feature-length film" means a live-action or animated production that is:

    1. (a) More than thirty (30) minutes in length; and
    2. (b) Produced for distribution in theaters or via digital format, including but not limited to DVD, Internet, or mobile electronic devices;
14. (14) "Heritage county" means a county where the county population ranking determined by the cabinet under KRS 154.21-017 scores greater than or equal to ninety-seven (97);
15. (15) "Industrial film" means a business-to-business film that may be viewed by the public, including but not limited to videos used for training or for viewing at a trade show;
16. (16) "Kentucky-based company" has the same meaning as in KRS 164.6011;
17. (17) "Loan-out entity" means a corporation, partnership, limited liability company, or other entity through which an artist or other person is loaned out to perform services for the approved company. A loan-out entity shall be registered and in good standing with the Kentucky Secretary of State. Notwithstanding the business organization, the loan-out entity and all employees of and other persons performing services for the loan-out entity shall be subject to all applicable provisions of the Kentucky personal income tax and any applicable payroll or other tax provisions;

18. (18)

    1. (a) "Motion picture or entertainment production" means: 1. The following if filmed in whole or in part, or produced in whole or in part, in the Commonwealth: a. A feature-length film; b. A television program; c. An industrial film; or d. A documentary; or 2. A national touring production of a Broadway show produced in Kentucky.
    2. (b) "Motion picture or entertainment production" does not include the filming or production of obscene material or television coverage of news or athletic events;
19. (19) "Obscene" has the same meaning as in KRS 531.010;
20. (20) "Person" has the same meaning as in KRS 141.010;

21. (21)

    1. (a) "Qualifying expenditure" means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production: 1. 2. The production script and synopsis; Set construction and operations, wardrobe, accessories, and related services; Lease or rental of real property in Kentucky as a set location; 3. Photography, sound synchronization, lighting, and related services; 4. 5. Editing and related services; 6. Rental of facilities and equipment; 7. Vehicle leases; 8. Food; and 9. Accommodations. "Qualifying expenditure" does not include Kentucky sales and use tax paid by the approved company on the qualifying expenditure;
    2. (b)
22. (22) "Qualifying payroll expenditure" means compensation paid to above-the-line crew and below-the line crew while working on a motion picture or entertainment production in the Commonwealth if the compensation is for services performed in the Commonwealth;
23. (23) "Resident" has the same meaning as in KRS 141.010;
24. (24) "Secretary" means the secretary of the Cabinet for Economic Development;
25. (25) "Tax incentive agreement" means the agreement entered into pursuant to KRS 154.61-030 between the council and the approved company; and

26. (26) "Television program" means any live-action or animated production or documentary, including but not limited to:

    1. (a) An episodic series;
    2. (b) A miniseries;
    3. (c) A television movie; or
    4. (d) A television pilot; that is produced for distribution on television via broadcast, cable, or any digital format, including but not limited to cable, satellite, internet, or mobile electronic devices.

Effective: April 27, 2026

History: Amended 2026 Ky. Acts ch. 198, sec. 22, effective April 27, 2026. -- Amended 2025 Ky. Acts ch. 91, sec. 5, effective July 1, 2025. -- Amended 2023 Ky. Acts ch. 75, sec. 30, effective June 29, 2023. -- Created 2021 Ky. Acts ch. 156, sec. 17, effective June 29, 2021.