Kentucky Tourism Development Act Incentive Program
State
Other
Other Assistance
Rolling
The KY Tourism Development Act (KTDA) Incentive program spports the development, expansion, or renovation of tourism projects in the Commonwealth. The program provides applicants the opportunitiy to recover a percentage of approved costs over a 10-20 year term through the recovery of incremental sales tax generated by the project. Project types include: tourism attractions; theme restaurant destination attractions; entertainment destination centers; and lodging facilities.
The Kentucky Tourism Development Act (KTDA) Incentive Program is a state tax incentive (not a traditional grant) that can allow an approved tourism project to recover up to 25% of approved development costs over 10 years through recovery of incremental on-site sales tax generated by the project (some projects may qualify for up to 50% over 20 years). Applications are submitted to the Tourism, Arts & Heritage Cabinet for review and then considered by the Kentucky Tourism Development Finance Authority (KTDFA), which meets monthly (3rd Wednesday); construction cannot begin until after final approval.
Next funding deadline
Rolling deadline
Timing Notes
KTDFA meets monthly at 1:30 PM (3rd Wednesday).
Max Award Amount
No max defined
Cost share/match Required
Other, Not a grant match structure; the incentive is based on approved project costs and recovery of incremental on-site sales tax. Eligibility is tied to minimum investment thresholds (e.g., $1M tourism attraction; $5M lodging on the Cabinet page).
Eligible applicants
Nonprofit with 501C3 Status
Small Business
Regional Organization
For Profit Organization
Eligibile Geographies
Anywhere in Kentucky
Eligibility Notes
KRS defines an “eligible company” broadly as a corporation/LLC/partnership/sole proprietorship/business trust or other entity operating or intending to operate a tourism development project.
Eligible project types include tourism attractions, theme restaurant destinations, entertainment destination centers, and lodging facility projects. The program page lists minimum investment thresholds of $1,000,000 for eligible tourism attraction projects and $5,000,000 for eligible full-service lodging projects (with additional qualifying criteria).