K-LOA: Loan-Out Affidavit/Allocation (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Form K-LOA is a loan-out affidavit and allocation form supporting the Kentucky Entertainment Incentive credit. It reports production, loan-out company and individual information, wages paid, qualifying Kentucky wages, and Kentucky withholding tax remitted.
Who files this form
Production companies claiming wages paid to personal service or loan-out companies on the Kentucky Entertainment Incentive Detailed Cost Report must file Form K-LOA with their Kentucky income tax return for credit.
A separate affidavit is required for each personal service or loan-out company included on the report.
What you'll need
Have the following information and records ready:
- Production company name, mailing address, FEIN, production name, and Kentucky production start and end dates. Use the dates certified on Exhibit C and Exhibit D submitted to the Kentucky Cabinet for Economic Development.
- Loan-out company name, addresses, FEIN, Kentucky work dates, authorized representative’s contact information, and Kentucky registration information.
- Each individual’s name, addresses, SSN, and Kentucky work dates. Attach additional sheets if the loan-out company provides more than one individual.
- Total wages paid for the production everywhere, qualified Kentucky wages, Kentucky withholding tax remitted, service dates, and withholding payment dates.
- Invoices for payments made to loan-out companies. The production company must provide these.
The affidavit requires original signatures from an authorized production company representative, an authorized loan-out company representative, and the individual.
How to file
Complete a separate affidavit for each loan-out company and file it with the production company’s Kentucky income tax return for credit.
- Complete the production company’s general information.
- Have an authorized loan-out company representative complete and sign the company information section.
- Have the individual complete and sign the individual information section.
- Have the production company complete the payments section.
- Make sure the affidavit is complete and has original signatures from all three required parties.
The form lists these submission contacts:
Mail:
Kentucky Department of Revenue
Tax Credits Section
P.O. Box 181, Station 52
Frankfort, KY 40602-0181
Fax: (502) 564-0058
Email: KRC.WEBResponseEconomicDevelopmentCredits@ky.gov
The loan-out company and the individual should keep a copy of the signed affidavit for their records and attach it to their Kentucky income tax returns as required.
Common mistakes
- Submitting an incomplete or unsigned affidavit. Failure to submit a fully completed and signed affidavit will result in disallowance of the credit related to that loan-out company. Original signatures from all three required parties are needed for acceptance.
- Leaving the registration boxes unfilled. The form says that if either registration box is not filled in, the company will be required to register with the Kentucky Secretary of State and Department of Revenue.
- Not providing payment invoices. Production companies must provide invoices for payments to loan-out companies.
- Overlooking the signed copy. The loan-out company and individual should retain a copy and attach it to their Kentucky income tax returns as required.
- Issuing the 1099-NEC to the wrong party. The form says the production company does not issue a 1099-NEC to the loan-out company. The loan-out company issues it to the individual.
Questions people ask
Can one affidavit cover several loan-out companies?
No. A separate affidavit must be completed and filed for each personal service or loan-out company included on the Detailed Cost Report for credit.
Who must sign the affidavit?
An authorized representative of the production company, an authorized representative of the loan-out company, and the individual must sign. The form requires original signatures.
What if the loan-out company provides more than one individual?
Attach additional sheets for the individual information.
Does the individual have to file a Kentucky income tax return?
Yes. The form states that the individual must file a Kentucky personal income tax return. The loan-out company issues a 1099-NEC to the individual, who uses it to file the return.
How do the wage amounts on lines 1 and 2 differ?
Line 1 reports total wages paid to the loan-out company for the production everywhere. Line 2 reports qualified wages paid to the loan-out company for the production in Kentucky.