Tourism can significantly contribute to the local economy and promote ongoing development within the community. Kentucky is a prime example, as it’s actively developing its tourism industry, with popular attractions like the Bourbon Trail and the Kentucky Derby.
Join McGuire Sponsel’s webinar Economic Incentives: Unlocking Growth Opportunities for CPAs and Real Estate Professionals presented by Chad Collier and Ben Worrell.
SelectUSA promotes the United States to the world, inviting companies from all countries to come to the U.S. and interact with key stakeholders, including federal, state, and local governments and economic development organizations.
If your client wants to establish themselves or expand operations in Arizona, the Arizona Qualified Facility Tax Credit Program should be on their radar. The program was established to support the growth of headquarters, manufacturing, and manufacturing-related research and development companies.
If you hadn’t heard of New Carlisle, Indiana, a year ago, you’d be forgiven. If you haven’t heard of New Carlisle, Indiana, as of today, you’re still forgiven, but let me tell you why you’re probably in the minority.
Economic credits and incentives are often overlooked when business advisors plan for future growth. Many other implications to the financial statements are considered before incentives, such as the cost of goods, overhead, and other operating costs.
Our Location Advisory team worked with an aviation maintenance company to procure incentives for their $5.9 million expansion.
This construction management and general contracting company had plans to revitalize. McGuire Sponsel helped negotiate incentives despite facing delays.
Our Location Advisory team worked with an healthcare services provider to procure incentives in Iowa for an expansion.
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Vacationing with the Kentucky Tourism Tax Credit
As summer comes to an end, we are in the midst of peak vacation season. Vacations provide a great opportunity to take a break from our daily routines and explore new destinations. When deciding on a vacation spot, people often take into account travel time, trip costs, and available tourist attractions. Vacation destinations typically offer a variety of attractions, including amusement parks, beaches, historical landmarks, and culinary options, each with its own unique appeal. While tourism is already a major industry for some states, others are striving to expand their tourism sector. Tourism can significantly contribute to the local economy and promote ongoing development within the community.
Kentucky is a prime example, as it’s actively developing its tourism industry, with popular attractions like the Bourbon Trail and the Kentucky Derby. The Bourbon Trail spans four areas of the state and offers the chance to sample different types of bourbon, along with transportation, accommodations, dining, classes, and outdoor activities. Additionally, the Kentucky Derby draws visitors from across the United States to watch up to 20 horses race for one and a quarter miles, known as the “most exciting two minutes in sports.”
As Kentucky continues to bolster its tourism industry, it offers incentives for developing tourism through the Kentucky Tourism Development Act (KTDA). The KTDA aims to stimulate projects for tourism development, expansion, and renovation in Kentucky.
Different requirements must be met to be eligible for the Tourism Development Incentive Program, depending on the project’s focus. The program supports various businesses in the tourism industry, such as hotels, lodges, resorts, sports facilities, spirits and distilleries, amusement parks, and aquariums. Tourism attraction projects require a minimum investment of $1 million, while full-service lodging facilities require a $5 million investment. In the 2022-2023 fiscal year, the Kentucky Department of Revenue contributed approximately $10 million towards the tourism industry.
A local distillery in Augusta, Kentucky, recently received an award of over $9 million from the Kentucky Department of Revenue under the Tourism Development Incentive Program. The project involved a rough $36.5 million investment towards their current facility. The local distillery offers tours, bourbon tastings, dining options, personal service and accommodations, and transportation methods. The process of procuring the sales and use credit took approximately four months, from preliminary to final approval. As of May 2024, the development has created a positive economic impact of $115,125,000.
If you have clients interested in investing in Kentucky tourism, they may be eligible for incentives. McGuire Sponsel’s Location Advisory Services can help you navigate your clients throughout the application and post-project reporting process to maximize their benefits.
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Devon McSurley
Devon McSurley is a Project Analyst with the Location Advisory Services team at McGuire Sponsel.
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