148.542 Definitions for KRS 148.542 to 148.546. As used in KRS 148.542 to 148.546: (1) (2) (3) (4) "Above-the-line production crew" means employees involved with the production of a motion picture or entertainment production whose salaries are negotiated prior to commencement of production, such as actors, directors, producers, and writers; "Animated production" means a nationally distributed feature-length film created with the rapid display of a sequence of images using 2-D or 3-D graphics of artwork or model positions in order to create an illusion of movement; "Approved company" means an eligible company approved for incentives provided under KRS 141.383 and 148.544; "Below-the-line production crew" means employees involved with the production of a motion picture or entertainment production except above-the-line production crew. "Below-the-line production crew" includes but is not limited to: (a) Casting assistants; (b) Costume design; (c) Extras; (d) Gaffers; (e) Grips; (f) Location managers; (g) Production assistants; (h) Set construction staff; and (i) Set design staff; (5) (6) (7) (8) (9) "Cabinet" means the Finance and Administration Cabinet; "Commonwealth" means the Commonwealth of Kentucky; "Compensation" means compensation included in adjusted gross income as defined in KRS 141.010; "Documentary" means a production based upon factual information and not subjective interjections; "Eligible company" means any person that intends to film or produce a motion picture or entertainment production in the Commonwealth; (10) "Employee" has the same meaning as in KRS 141.010; (11) "Enhanced incentive county" has the same meaning as in KRS 154.32-010; (12) "Feature-length film" means a live-action or animated production that is: (a) More than thirty (30) minutes in length; and (b) Produced for distribution in theaters or via digital format, including but not limited to DVD, Internet, or mobile electronic devices; (13) "Industrial film" means a business-to-business film that may be viewed by the public, including but not limited to videos used for training or for viewing at a trade show; (14) "Kentucky-based company" has the same meaning as in KRS 164.6011; (15) (a) "Motion picture or entertainment production" means: 1. The following if filmed in whole or in part, or produced in whole or in part, in the Commonwealth: a. A feature-length film; b. A television program; c. An industrial film; or d. A documentary; or 2. A national touring production of a Broadway show produced in Kentucky; (b) "Motion picture or entertainment production" does not include the filming or production of obscene material or television coverage of news or athletic events; (16) "Obscene" has the same meaning as in KRS 531.010; (17) "Office" means the Kentucky Film Office in the Tourism, Arts and Heritage Cabinet; (18) "Person" has the same meaning as in KRS 141.010; (19) (a) "Qualifying expenditure" means expenditures made in the Commonwealth for the following if directly used in or for a motion picture or entertainment production: 1. 2. 3. 4. 5. The production script and synopsis; Set construction and operations, wardrobe, accessories, and related services; Lease or rental of real property in Kentucky as a set location; Photography, sound synchronization, lighting, and related services; Editing and related services; 6. Rental of facilities and equipment; 7. Vehicle leases; 8. Food; and 9. Accommodations. (b) "Qualifying expenditure" does not include Kentucky sales and use tax paid by the approved company on the qualifying expenditure; (20) "Qualifying payroll expenditure" means compensation paid to above-the-line crew and below-the line crew while working on a motion picture or entertainment production in the Commonwealth if the compensation is for services performed in the Commonwealth; (21) "Resident" has the same meaning as in KRS 141.010; (22) "Secretary" means the secretary of the Tourism, Arts and Heritage Cabinet; (23) "Tax incentive agreement" means the agreement entered into pursuant to KRS 148.546 between the office and the approved company; and (24) "Television program" means any live-action or animated production or documentary, including but not limited to: (a) An episodic series; (b) A miniseries; (c) A television movie; or (d) A television pilot; that is produced for distribution on television via broadcast, cable, or any digital format, including but not limited to cable, satellite, Internet, or mobile electronic devices. Effective: April 27, 2018 History: Amended 2018 Ky. Acts ch. 171, sec. 61, effective April 14, 2018; and ch. 207, sec. 61, effective April 27, 2018. -- Amended 2015 Ky. Acts ch. 74, sec. 1, effective June 24, 2015. -- Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 43, effective June 26, 2009. Legislative Research Commission Note (4/27/2018). This statute was amended by 2018 Ky. Acts chs. 171 and 207, which do not appear to be in conflict and have been codified together. Legislative Research Commission Note (6/24/2015). 2015 Ky. Acts ch. 74, sec. 4 provides that the amendments made to this statute in that Act apply to taxable periods beginning on or after January 1, 2015.