Tourism Development Incentive Grant Program

The Tourism Development Incentive Grant Program in Kentucky aims to boost tourism by providing financial incentives for the development and rehabilitation of tourism projects. Eligible projects include attractions, theme restaurants, and lodging facilities, with investments starting at $1 million. The program allows up to 25% recovery of approved development costs over ten years, enhancing the state's tourism infrastructure and stimulating economic growth through increased visitor engagement.

Background
The Kentucky Tourism Development Act (KTDA) is an incentive program designed to encourage the development, expansion or rehabilitation of tourism projects throughout the Commonwealth. Projects can recover up to 25 percent of approved development costs over a 10 year term through the recovery of incremental sales tax generated by the project.
Entertainment destination center;
Lodging facility.

Eligibility

Eligible Tourism Attraction Projects (Minimum $1 Million Investment)Cultural or historical sites;
Area of scenic beauty or natural phenomenon;
Kentucky Crafts and Products Center; Eligible Full-Service Lodging Projects (Minimum $5 Million Investment))Located on property owned by or leased by the Commonwealth or the federal government; or
Built with a tourism attraction project project which costs more than the lodging facility; or
Restoration or rehabilitation of a historic structure; or
Construction, 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 facility which is or will be an integral part of a major convention or sports facility with project costs 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 is located within any of the 100 least populated counties in terms of population density.Some projects may be eligible to recover a higher share of approved costs, possibly over a longer term. For example, eligible lodging projects built on state or federal parks and recreational lands can recover up to 50 percent of development costs over 20 years.