Film Incentive Refundability

Issue: 

The refundability of the program’s tax credits should be restored. 

Key Points:

• Refundable film incentive tax credits are a key component of the effectiveness of the program’s competiveness and overall effectiveness.
• This is an important tool for our production and film economy as well as all of the small businesses in Kentucky who benefit from their work. 
• Will benefit local communities and this industry sector to regain what we have lost since the change making it an un-refundable tax credit was passed in 2017. 
• While other states have chosen to reinvest in their film incentives to capitalize on the industry’s growth and the growing demand for streaming content, Kentucky falls behind. We have not only just lost projects, but jobs, support of our local businesses we gained from these and the loss in local expenditures- thus decreased revenues for us all.  
• Restoring a refundable tax incentive will attract production and editing studios back to Kentucky to film in our state. 
• Production companies create a ripple effect by employing a variety of Kentucky small businesses- jobs in staffing, catering, construction, transportation, hospitality, catering, make-up artists, legal, etc.
• There is a return on the investment of this tax credit, because we are attracting companies and projects that would not otherwise be here, they put “heads in beds” spend locally, stay locally.
• At a time our local communities need all of the help and additional revenues and opportunities we cannot afford to not be competitive with surrounding states and other states who are happy to take advantage of what this industry sector has to offer. Prior to the change, Kentucky was gaining ground and communities and region’s like mine saw the great benefit that is now gone.