Stivers' SB 324 Passes Senate, Strengthening Kentucky Film Incentives

Senate President Robert Stivers' Senate Bill 324 cleared the Kentucky Senate 36-0 on March 17, positioning the Commonwealth to compete for a broader range of entertainment productions and tightening financial accountability for the incentives used to attract them.

The bill builds directly on a 2025 measure that established the Kentucky Film Office, adding structural changes to how that office processes applications and expanding the types of productions eligible for incentives beyond traditional film to include video games, music videos, and commercials. Stivers, who represents Manchester in Clay County just west of Owsley, sponsored the legislation.

"Senate Bill 324 positions Kentucky to compete more effectively for major film and entertainment projects while ensuring accountability for taxpayer dollars," Stivers said. "By modernizing our incentive structure, expanding eligible productions, and strengthening oversight, we are creating an environment that supports job creation, encourages investment, and showcases Kentucky to a global audience."

Under the bill, the Kentucky Film Office would be required to review incoming applications and forward completed ones to both the Cabinet for Economic Development and the Kentucky Film Leadership Council, whose responsibilities the bill also modifies. Minimum thresholds for qualifying expenditures and payroll would be raised to ensure what officials described as "a stronger return on investment," and productions would be required to submit a certified audit from approved companies within 180 days of completion.

The Senate Committee Substitute adopted alongside final passage added further precision to several financial provisions. It allows the Kentucky Film Office to incorporate expenditure sampling procedures into its certified audit standards, requires that qualifying expenditures and payroll for continuous film productions be prorated against the total production budget, and clarifies that a $1,000,000 cap on qualifying payroll expenditures applies per episode for continuous productions. The substitute also allows an unallocated balance of $75,000,000 to be approved for companies with continuous film productions.

SB 324 was introduced March 2, referred to the Senate Committee on Economic Development, Tourism, and Labor on March 4, and reported favorably with the committee substitute on March 12. The bill was posted for passage March 16 but held over before receiving its third reading and passing unanimously the following day.

The bill arrived in the Kentucky House of Representatives on March 18, where it was sent to the Committee on Committees for assignment. Which House committee will take it up and when hearings may be scheduled has not yet been announced. The full bill text and any accompanying fiscal note, including the specific new dollar thresholds for qualifying expenditures and payroll, remain the clearest source for understanding the complete scope of the changes once the House takes it up.