THE INCENTIVES PROGRAM - TIP

On March 26, 2021, Governor Beshear signed the amendments contained in House Bill 249, related  to the Kentucky Motion Picture or Entertainment Production Tax Credit Incentives Program, into law. The amendments are as follows:

• Changes the tax credit earned from a nonrefundable and nontransferable credit to a refundable tax credit;
• Reduces the annual funding cap from $100 million to $75 million per calendar year;
• Requirements:
  • Begin production within six months of filing an application; and,
  • Complete production within two years of the production’s start date;
• Closes the Kentucky Film Commission and transfers authority to the Kentucky Economic Development Finance Authority;
• The amendments did not impact the following:
  • 30% credit on qualifying nonresident labor and nonpayroll local spend;
  • 35% credit on qualifying resident labor;
  • Defines qualifying labor as:
    • The 1^st $1 million paid to each resident and nonresident above-the-line employee;
    • All compensation paid to resident and nonresident below-the-line production crew; and,
  • An additional 5% credit on all qualifying expenses when projects are filmed within an “enhanced county.”

This Act will take effect for applications approved on or after January 1, 2022.

On March 24, 2021, Senate Bill 167 became law without Governor Spencer Cox’s signature. The bill increases the funding for the Utah Motion Picture rebate program from $6.79 million to $8,393,700 for the fiscal year ending June 30, 2022.