Kentucky's Tourism Development Incentive Program
ELIGIBLE TOURISM ATTRACTION PROJECTS
$1,000,000 minimum project development cost can recover 25% of development cost over 10 years, such as:
- 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;
ELIGIBLE LODGING PROJECTS
- built with a tourism attraction and the tourism attraction cost more than the lodging facility; or
- rehabilitation of a historic structure; or
- restoration or renovation of a lodging facility having no less than 500 rooms with project costs exceeding $10,000,000; or
- construction, restoration, or renovation of a full-service lodging facility which is or will be a part of a major convention or sports facility with project cost exceeding $6,000,000; or
- construction, restoration, or renovation of a facility which is or will be located within a 50-mile radius of a property located on the National Register of Historic Places with a current function of recreation and located within any of the 100 least populated counties in terms of population density
Eligible Lodging Projects built on state or federal parks and recreational lands can recover up to 50% of development costs over 20 years
APPLICATION AND APPROVAL PROCESS
The company submits the application to the Secretary of the Tourism, Arts and Heritage Cabinet.
With the Secretary’s recommendation, the project will go before the Kentucky Tourism Development Finance Authority for preliminary approval.
With preliminary approval, the Cabinet’s independent consultant will do an in-depth study to make sure the project meets the requirement of the act. This study will be paid for by the applicant in advance.
Using the consultant’s findings, the Secretary will determine whether to request the Authority give final approval.
Upon final approval from the Authority, an agreement will be signed by the applicant and the Commonwealth allowing the company to recover the sales tax. The applicant cannot begin construction until after final approval. The Kentucky Tourism Development Finance Authority meets once a month to approve incentive requests. The meetings are held at 1:00 p.m. the third Wednesday of every month at 500 Mero Street, Fifth Floor, Frankfort, KY 40601.
For a detailed discussion on this or any of our programs, please contact: Mona Juett, Deputy Commissioner, 502-892-3320.
Download KTDA Application