Kentucky Tourism Development Cabinet

Kentucky Tourism Development Act

Overview:

The incentive for developers of approved new or expansion tourism projects is the ability to recover up to 25% of the project's development costs over a ten year term. Projects including, but not limited to lodging facilities, that are constructed on state park, federal park and national forest lands are eligible to recover up to fifty percent (50%) of development costs over a twenty year term. An expanding attraction receives the incentive on increased sales tax due to the expansion.

Eligible Applicants:

• Cultural or historical sites
• Recreation or entertainment facilities
• Areas of scenic beauty or distinctive natural phenomena
• Entertainment destination centers
• Kentucky crafts and products centers
• Theme Restaurant Destinations
• Lodging, only which will qualify when meeting certain criteria.

Projects that DO NOT qualify are strictly retail businesses and recreational facilities that are used primarily by local residents and are not a likely destination for out-of-state travelers.

Deadline:

Applicants may submit the required material to the Secretary of the Commerce Cabinet, for an initial review, any time during the year.

For complete information visit:

http://tourism.ky.gov/tdinc.asp#ktda

Contact:

For more information or to request an application, contact the Department of the Tourism at the following address:

M. Todd Cassidy, Director
Economic and Community Development
Department of Tourism
2200 Capital Plaza Tower, 500 Mero Street
Frankfort, Kentucky 40601
Phone: (502) 564-8067
Fax: (502) 564-7588
Email: Todd.Cassidy@ky.gov

Kentucky Tourism Development Cabinet

Tax Increment Financing

Overview:

For projects of a larger scale, Kentucky continues to show its support through Tax Increment Financing. This program provides the developer of an approved project the ability to recoup up to 25% of their project costs over a twenty-year period. Two projects totaling $200 million have received approval under this legislation.

Eligible Applicants:

Projects applying for benefit under the Tax Increment Financing legislation must meet the following requirements:

• be a tourism attraction, recreational or commercial facility;
• represent new economic activity in the Commonwealth;
• have a minimum capital investment of $10,000,000;
• create no less that twenty-five new full time jobs for Kentucky residents;
• have a net positive economic impact for the state of Kentucky;
• generate no less that twenty-five percent of its annual revenues through out-of-state visitors;
• result in a unique contribution to or preservation of the economic vitality and quality of life of a region of the Commonwealth; and
• not be primarily devoted to the retail sale of goods.

Deadline:

Applicants may submit the required material any time during the year.

For complete information visit:

http://tourism.ky.gov/tdinc.asp#ktda

Contact: