KRS 141.383 — Refundable tax credit for motion picture or entertainment production expenses -- Reporting

(1) As used in this section:
(a) "Above-the-line production crew" has the same meaning as in KRS 154.61 -
010;
(b) "Approved company" has the same meaning as in KRS 154.61-010;
(c) "Below-the-line production crew" has the same meaning as in KRS 154.61 -
010;
(d) "Continuous film production" has the same meaning as in KRS 154.61-010;
(e) "Council" means the Kentucky Film Leadership Council created in K RS
154.12-282;
(f) "Loan-out entity" has the same meaning as in KRS 154.61-010;
(g) "Qualifying expenditure" has the same meaning as in KRS 154.61-010;
(h) "Qualifying payroll expenditure" has the same meaning as in KRS 154.61 -
010;
(i) "Secretary" has the same meaning as in KRS 154.61-010; and
(j) "Tax incentive agreement" has the same meaning as KRS 154.61-010.
(2) (a) There is hereby created a tax credit against the tax imposed under KRS
141.020 or 141.040 and 141.0401, with the ordering of credits as provided in
KRS 141.0205.
(b) The incentive available under paragraph (a) of this section is:
1. A refundable credit for applications approved prior to April 27, 2018;
2. A nonrefundable and nontransferable credit for applications approved on
or after April 27, 2018, but before January 1, 2022; and
3. A refundable credit for applications approved on or after January 1,
2022, if the provisions of paragraph (c) of this subsection are met.
(c) 1. The total tax incentive approved under KRS 154.61 -020 shall be limited
to:
a. One hundred million dollars ($100,000,000) for calendar year
2018 and each calendar year through the calendar year 2021;
b. Seventy-five million dollars ($75,000,000) for the calendar year
2022 and each calendar year thereafter; and
c. Beginning with calendar year 2024, the amount in subdivision b.
of this subparagraph shall be allocated accordingly:
i. Twenty-five million dollars ($25,000,000) shall be allocated
for all approved companies with a continuous film
production; and
ii. On the first day of April 2025, and on April 1 of each
calendar year thereafter, any unused balance allocated under
subpart i. of this subdivision for continuous film productions
shall be made available for all approved companies with a
motion picture or entertainment production.
2. To qualify for the refundable credit, all applicants shall:
a. Begin filming or production in Kentucky within six (6) months of
approval by the council; and
b. Complete filming or production in Kentucky within two (2) years
of their production start date.
(3) An approved company may receive a refundable tax credit if:
(a) The department has received notific ation from the council that the approved
company has satisfied all requirements of KRS 154.61 -020 and 154.61 -030;
and
(b) The approved company has provided a detailed cost report and sufficient
documentation to the council, which has been forwarded by the council to the
department, that:
1. The purchases of qualifying expenditures were made after the execution
of the tax incentive agreement; and
2. The approved company or loan -out entity has withheld income tax as
required by KRS 141.310 on all qualified pa yroll expenditures, and
remitted and certified the withheld amount to the department.
(4) Interest shall not be allowed or paid on any refundable credits provided under this
section.
(5) The department may promulgate administrative regulations under KRS Ch apter
13A to administer this section.
(6) On or before September 1, 2010, and on or before each September 1 thereafter, for
the immediately preceding fiscal year, the department shall report to the council and
the Interim Joint Committee on Appropriations and Revenue the names of the
approved companies and the amounts of refundable income tax credit claimed.
(7) No later than September 1, 2021, and by November 1 every four (4) years
thereafter, the department and the Cabinet for Economic Development shall
cooperatively provide historical data related to the tax credit allowed in this section
and KRS 154.61 -020 and 154.61-030, including data items beginning with tax
credits claimed for taxable years beginning on or after January 1, 2018:
(a) The name of the taxpayer claiming the tax credit;
(b) The date that the application was approved and the date the filming or
production was completed;
(c) The taxable year in which the taxpayer claimed the tax credit;
(d) The total amount of the tax credit, including any amount denied, any amount
applied against a tax liability, any amount refunded, and any amount
remaining that may be claimed on a return filed in the future;
(e) Whether the taxpayer is a Kentucky -based company as defined in KRS
154.61-010;
(f) Whether the taxpayer films or produces a:
1. Feature-length film, television program, or industrial film;
2. National touring production of a Broadway show; or
3. Documentary;
(g) Whether the filming or production was performed:
1. Entirely in an enhanced county; or
2. In whole or in part in any Kentucky county other than in an enhanced
incentive county;
(h) The amount of qualifying expenditures incurred by the taxpayer;
(i) The amount of qualifying payroll expenditures paid to:
1. Resident below-the-line crew; and
2. Nonresident below-the-line production crew;
including the number of crew members in each category;
(j) The amount of qualifying payroll expenditures paid to:
1. Resident above-the-line crew; and
2. Nonresident above-the-line crew;
including the number of crew members in each category; and
(k) A brief description of the type of motion picture or entertainment pr oduction
project.
(8) The information required to be reported under this section shall not be considered
confidential taxpayer information and shall not be subject to KRS Chapter 131 or
any other provisions of the Kentucky Revised Statutes prohibiting disc losure or
reporting of information.