State approves $9 million tax rebate

21clexherald-leader

A proposed 21c Museum Hotel in downtown Lexington received approval Monday for up to $9 million in state tax incentives over a decade.

The Kentucky Tourism Development Finance Authority, which oversees tax credits for tourism and film-related projects, approved the sales tax credit for the 90-room hotel planned for Lexington’s historic First National Bank Building.

To receive the tax rebate, a tourism project must cost more than $1 million, be open more than 100 days a year and attract at least 25 percent of its visitors from out-of-state by its fourth year of operation. The rebate is based on sales tax generated by the tourism attraction.

The 21c hotel is projected to exceed all of the tax rebate’s requirements, said Gil Lawson, spokesman for the Kentucky Tourism, Arts and Heritage Cabinet. The boutique hotel has a budget of $42 million, will be open year-round and is expected to attract 42 percent of its visitors from out-of-state, he said.

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