Kentucky Entertainment Incentive (KEI) Program
Kentucky Cabinet for Economic Development
30–35% of eligible KY spend
30–35% refundable KY entertainment credit
Kentucky's Entertainment Incentive (KEI) program offers a 30% refundable tax credit on eligible production costs for film, television, and entertainment productions filmed in Kentucky. The rate increases to 35% for projects in Enhanced Incentive Counties or for productions using crews composed primarily of Kentucky residents. Annual program funding is $75 million. The credit is refundable and nontransferable — cash back at tax filing time. New law enhancing the program takes effect mid-summer 2026.
- Funding type
- Tax Credit
- Level
- State
- Amount range
- $6,000
- Realistic amount
- Feature films with $1M–$5M qualifying KY spend receive $300,000–$1.75M in refundable credits. TV series receive $300K–$3…
- Deadline
- Rolling — must contact Kentucky Cabinet for Economic Development before production begins. Annual fund resets each year.
- Status
- active
- States
- KY
- Payment model
- tax offset
Who qualifies
- Production company must be filming in Kentucky
- Minimum qualifying in-state spend: $250,000 for feature-length films, TV programs, and industrial films; $20,000 for national touring Broadway shows and documentaries
- Must apply to and receive pre-approval from the Kentucky Cabinet for Economic Development before the start of principal photography
- Credits are refundable and nontransferable (unused credits result in a cash refund at tax time, not a carryforward)
- Ineligible expenditures include: out-of-Kentucky vendor payments, airfare, legal/accounting/insurance, alcohol/tobacco, and online purchases
Hard requirements
- Must be incorporated
- Location restriction: Kentucky — production must film in KY
What it covers
Eligible expenses
- Kentucky resident crew wages and payroll
- Payments to Kentucky-based vendors and suppliers
- Kentucky studio and location rental fees
- Kentucky-based post-production services
- Equipment rentals from Kentucky vendors
- Kentucky catering and accommodations
Ineligible expenses
- Out-of-Kentucky vendor expenses
- Airfare
- Legal, accounting, and insurance costs
- Alcohol and tobacco
- Online purchases (Amazon etc.)
- Per diems above IRS-allowed limits
How to apply
-
1
Schedule introductory call with Kentucky Cabinet
Email CED.KEI@ky.gov to schedule an introductory call with the Kentucky Cabinet for Economic Development's KEI program team before applying. Discuss the production timeline, budget, and Kentucky spend plan.
~2 hrs
-
2
Submit formal application and receive pre-approval
Complete and submit the KEI application including production budget, projected Kentucky qualifying expenditures, shooting schedule, and distribution plan. Receive written pre-approval from the Cabinet establishing the credit rate before filming begins.
~8 hrs
-
3
Film in Kentucky and track qualifying expenditures
Complete production in Kentucky. Maintain detailed records of all Kentucky qualifying expenditures — crew wages for KY residents, KY vendor invoices, location fees, KY-based post-production. Keep all receipts.
~10 hrs
-
4
Submit final audit and claim refundable credit
After production, submit a CPA-certified audit of Kentucky qualifying expenditures to the Cabinet. The Cabinet certifies the credit amount. The production company claims the refundable credit on its Kentucky income tax return — unused credit amount is refunded in cash.
~15 hrs
The credit is refundable — even if the production entity has zero Kentucky tax liability, it gets a cash check for the credit amount. This is effectively a 30–35% cash rebate, not just a tax offset.
Deadline & timing
Apply before principal photography begins — the Cabinet will not accept retroactive applications. Schedule an introductory call by emailing CED.KEI@ky.gov. New program enhancements take effect mid-summer 2026 per recently passed legislation.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.