House committee says ‘action’ to film office bill

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House committee says ‘action’ to film office bill March 11, 2025
Senate President Robert Stivers, R-Manchester, explains the economic benefits of Senate Bill 1 to the House Economic Development and Workforce Investment Committee on Tuesday. The bill would create the Kentucky Film Office. A high-resolution photo can be found here.
FRANKFORT — Horse racing, bourbon and film? With Senate Bill 1, filmmaking could become another one of Kentucky’s signature industries.
The House Economic Development and Workforce Investment Committee advanced the legislation on Tuesday. SB 1 is sponsored by Sen. Phillip Wheeler, R-Pikeville, and Senate President Robert Stivers, R-Manchester.
Wheeler said Kentucky has had some of the most generous tax credits on the books for television and filmmakers for years, but they’re being underutilized.
“Here in Kentucky, with our natural landscape, our friendly people and endless potential, I think that we can take Kentucky film production to the next level,” Wheeler said.
SB 1 would create the Kentucky Film Office within the state Cabinet for Economic Development. Wheeler said Kentucky has the potential to produce a blockbuster hit, and the office would set up the proper infrastructure to support that type of filmmaking.
“The film office will have certain duties. Most importantly, it will basically create a website and the infrastructure necessary to attract these types of feature films to the Commonwealth of Kentucky,” Wheeler said. “In addition, there will be a Kentucky Film Leadership Council made up of people in the industry, folks from the economic development cabinet, people that know how to bring the film industry and make it successful in this commonwealth.”
In Georgia, filmmakers have access to a state-ran website where they can look at all the potential filming locations and access information on permitting, among other things. Wheeler said Kentucky is currently missing that key component, but SB 1 would fix that.
There are some critics who feel SB 1 would only help bigger Kentucky cities like Lexington and Louisville. Wheeler said he disagrees, using an upcoming Netflix film that was produced in Louisa as an example.
“There are places that this bill will have an application way beyond Louisville and Lexington, but if it helps Louisville and Lexington, great,” Wheeler said. “If one area of the commonwealth succeeds, we all succeed.”
Rep. Matt Lockett, R-Nicholasville, asked why there is a need for a separate board to get this initiative running.
Stivers said he’s worked on SB 1 for a few years, and through his research and conversations with the cabinet, he’s learned filmmaking is an industry where networking and having certain connections are valuable.
“Secretary (Jeff) Noel said we really don’t have that type of mindset and network within our cabinet, but give us a tool, then we will be able to go to a different level, as Sen. Wheeler said,” Stivers said. “Working with the cabinet – and they did have input on this – this is the product we get.”
Stivers and Wheeler said SB 1 has the potential to boost Kentucky’s economy. Rep. Nima Kulkarni, D-Louisville, asked how the tax incentives may impact local economies.
“What is the local impact in terms of growing workforce, growing small businesses or ancillary benefits like that” she asked.
Citing a 2022 University of Louisville study, Wheeler said the Kentucky film, motion picture and recording industry generated about $200 million in revenue.
“Which they estimated helped other businesses earn approximately $128 million as a result of that, and approximately $27 million was paid in federal, state and local taxes,” he said.
Stivers said the transient room tax will help fund the office.
“The way this is funded is taking up to $500,000 from the transient room tax. They generate $2.5 million a year,” he said.
Andrew McNeil with the Kentucky Forum for Rights, Economics and Education, asked the committee to vote against SB 1 due to the tax incentive provisions in the legislation.
“These are handouts,” he said, adding he doesn’t believe the bill will boost Kentucky’s economy, but will instead use taxpayer money to subsidize the film industry.
Stivers said the system is set up to monitor and ensure the filmmaking industry will make a true investment in Kentucky’s economy.
“If the people come in from out of state and they pay a wage here, they have to pay income tax here,” Stivers said. “That’s how you generate that type of return and payment back.”
The House Economic Development and Workforce Investment Committee approved SB 1 by a 17-0 vote with one pass vote.
The bill will now go before the full House for consideration.
News Releases are provided by the LRC Public Information Office. All photos are attributed to LRC Staff.
https://apps.legislature.ky.gov/publicservices/pio/release.html#SB1-031125