Kentucky Film Incentives
A producer’s complete guide to the Kentucky Entertainment Incentive program — one of the most competitive and reliable incentive packages in the United States.
The Kentucky Entertainment Incentive (KEI)
Since restoration in 2022, the KEI program has approved over 315 productions and created more than 27,000 jobs. Kentucky’s credits are fully refundable — meaning actual cash back to your production company, not just a deduction.
Core Incentive Structure
| Credit Type | Rate | Requirement |
|---|---|---|
| Standard Credit | 30% | All eligible Kentucky production expenditures |
| Enhanced Credit | 35% | Production in “Enhanced Counties” OR use of Kentucky-resident below-the-line crew |
Financial Caps
| Cap Type | Amount |
|---|---|
| Annual Statewide Pool | $75,000,000 |
| Per-Project Annual Cap | $10,000,000 |
| Continuous Production Reserve | $25,000,000 (of annual cap) |
⚡ 2026 Status — Real-Time
$75M annual cap. As of the May 28, 2026 KFLC meeting, $42.9M remains available for new applications. KFLC meets monthly — apply early.
📜 New Law: SB 324 (Effective Midsummer 2026)
Signed April 23, 2026, SB 324 amends KRS 141.383. The amended program maintains the $75M annual cap and adds carryforward provisions for unused funds to benefit high-impact productions — a producer-friendly improvement on a credit that, until now, could not be carried forward. Updated KEI guidelines will be issued by the Cabinet for Economic Development.
Eligible Productions
- Feature films
- TV series, episodic shows, miniseries
- TV movies and pilots
- Documentaries
- Streaming content (Netflix, Hulu, Prime, etc.)
- Broadway touring shows
- Industrial and commercial projects
Minimum Spend Requirements
| Project Type | Minimum Kentucky Spend |
|---|---|
| Feature-length film | $250,000 |
| Documentary | $20,000 |
| Continuous production (TV series, etc.) | $1.5M+ per year (from $10M+ total budget) |
Principal photography must start within 6 months of approval and wrap within 2 years.
Producer Cost Reference
| Line Item | Kentucky Rate |
|---|---|
| Payroll burden (taxes, statutory insurance, union fringe) | 22–25% |
| Workers' comp (production work) | ~3.0% |
| State sales tax on production purchases | 6% |
The Lexington Advantage
Lexington is Kentucky’s primary production hub — home to LEX Studios (52,000 sq ft, three sound stages, grip & electric, nine Avid edit bays) and within one hour’s drive of 10 Enhanced Incentive Counties that trigger the 35% rate.
Louisville offers urban architecture and historical landmarks. The entire state offers horse farms, bourbon distilleries, natural landscapes, and small-town America that production designers dream about.
Key Contacts
| Organization | Contact |
|---|---|
| Kentucky Film Office — Meg Fister Executive Director (your first call) |
meg.fister@ky.gov (502) 564-3456 |
| Kentucky Cabinet for Economic Development (KEI Applications) | CED.KEI@ky.gov 800.626.2930 |
| FilmLEX (Lexington & Central KY) | film@visitlex.com |
Ready to Apply?
Contact CED to schedule your mandatory introductory call and begin the process.
