Budget & Taxes (Tax Credits)

in committee · Kentucky · House Mar 10, 2026

HB 835: AN ACT relating to the New Markets Development Program tax credit.

Amend KRS 141.433 to allow amounts received as repayment on a qualified low-income community investment and reinvested in another qualified low-income community investment during the same calendar year to be considered continuously held; amend KRS 141.434 to increase the cap on total New Markets Development Program tax credits from $10 million to $20 million in each fiscal year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax credit cap and allows reinvestment flexibility, promoting economic development and fiscal incentives for low-income community investments.85% confidence

Sub-Topics Tax Credits

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in committee · Kentucky · Senate Feb 26, 2026

SB 255: AN ACT relating to rural revitalization.

Create new sections of KRS Chapter 65 to provide incremental revenue tax incentives to the Rural Kentucky Revitalization Opportunity Partnership; define terms; state findings; establish the Rural Kentucky Revitalization Opportunity Partnership Board; establish incentive program; create an income tax credit for certain residents; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow reporting by the Department of Revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credits for residents and establishes tax incentives under rural revitalization, directly advancing tax policy through new credits and modifications to tax codes (KRS 141.0205, 131.190).95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Economic Development Rural Communities

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signed · Kentucky · Senate Apr 27, 2026

SB 197: AN ACT providing funding and establishing conditions for state government agencies and institutions, making an appropriation therefor, and declaring an emergency.

Create a new section of Subchapter 32 of KRS Chapter 154 to establish a tiered county system for eligible companies to receive incentives under the Kentucky Business Investment Program; amends KRS 154.32-010 to define "tier"; amends KRS 154.32-020 and 154.32-040 to conform; amend KRS 154.32-050 to specify tiering procedures; amend KRS 154.32-060 to require the Kentucky Economic Development Finance Authority to identify and certify or decertify the tiers for all counties on an annual basis into 4 tax credit tiers; provide that the incentives available under this subchapter be determined based on the county where the economic development project is located by an approved company; provide a county's tier will be based on a 5 year average of its unemployment rate and population ranking; amend KRS 154.32-090, 154.61-010, 154.61-020, and 141.383 to conform.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes tiered tax incentives for businesses under economic development program, directly modifying tax policy to promote investment and job creation.90% confidence

Sub-Topics Appropriations Tax Credits Tax Incentives Tags Economic Development

in committee · Kentucky · House Feb 10, 2026

HB 545: AN ACT relating to a tax credit for alternative jet fuel.

Create a new section of KRS Chapter 141 to establish a nonrefundable income tax credit for alternative jet fuel producers; require the Department of Revenue, in conjunction with the Department of Agriculture and the Energy and Environment Cabinet, to promulgate administrative regulations; require the department to report on the credit to the Legislative Research Commission; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates nonrefundable income tax credit for alternative jet fuel producers, directly providing tax relief through legislative tax policy.90% confidence ✓ EnergySupports EnergyCreates tax credit for alternative jet fuel producers, promoting renewable energy development and investment through financial incentives.95% confidence ✓ EnvironmentSupports EnvironmentTax credit incentivizes alternative jet fuel production, promoting cleaner aviation fuel and reducing emissions per environmental indicators.85% confidence ✓ TransportationSupports TransportationCreates tax credit for alternative jet fuel producers, promoting sustainable aviation fuel within transportation sector per Aeronautics/Aviation subjects and sustainable transportation indicators.85% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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in committee · Kentucky · House Mar 5, 2026

HB 768: AN ACT relating to a Kentucky working credit.

Create a new section of KRS Chapter 141 to establish a refundable Kentucky working credit equal to 30% of the federal earned income credit allowed for the taxable year; a taxpayer's modified gross income to be in excess of the amount eligible for the family size tax credit allowed in KRS 141.066(limit the credit to $2,000 per taxable year; make credit effective for taxable years beginning on or after January 1, 2027, but before January 1, 2031; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for low/middle-income workers (30% of federal EITC), providing direct tax relief and aligning with federal EITC structure, supporting fiscal relief for working families.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates refundable tax credit for low-income workers (30% of federal EIC), directly increasing disposable income for working families. Expands financial support through tax policy.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Kentucky · House Feb 3, 2026

HB 489: AN ACT relating to an eligible child tax credit.

Create a new section in KRS Chapter 141 to establish a nonrefundable individual income tax credit for an eligible child; define "eligible child"; allow credit for taxable years beginning on or after January 1, 2027, but before January 1, 2031; establish that the credit amount is equal to $4,000 per eligible child, not to exceed $8,000 per return, per taxable year; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $4,000 nonrefundable child tax credit per eligible child, providing direct tax relief to families. Aligns with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Kentucky · House Jan 15, 2026

HB 238: AN ACT relating to an apprenticeship tax credit.

Create a new section of KRS Chapter 141 to establish an income tax credit for employers that maintain an apprenticeship program and hire apprentices; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report to the Legislative Research Commission on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates corporate income tax credit for apprenticeship programs, directly modifying tax policy to incentivize workforce development and aligns with fiscal tools for economic growth.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentTax credit incentivizes employer-sponsored apprenticeships, promoting workforce development and job training opportunities within Labor & Employment framework.85% confidence

Sub-Topics Income Tax Tax Credits Apprenticeships

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in committee · Kentucky · Senate Jan 13, 2026

SB 81: AN ACT relating to the Kentucky child credit.

Create a new section of KRS Chapter 141 to establish a refundable Kentucky child credit for taxpayers with qualifying children under the age of 6; authorize a maximum credit of $1,000 per qualifying child for individuals with income below $50,000 for single taxpayers and $100,000 for married taxpayers filing jointly; provide that individuals with incomes above the specified thresholds may be eligible for a reduced child credit; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for low/middle-income families with children under 6, reducing tax burden per income thresholds.92% confidence

Sub-Topics Tax Credits

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in committee · Kentucky · House Jan 14, 2026

HB 228: AN ACT relating to a tax credit for renters.

Create a new section of KRS Chapter 141 to establish a refundable qualified rent payment credit for taxable years beginning on or after January 1, 2027, but before January 1, 2031, in the amount of 25% of the qualified rent payments made during the taxable year, not to exceed $1,000; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow reporting by the Department of Revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefundable tax credit for renters provides direct tax relief to lower-income households, reducing their tax burden under state tax code.95% confidence ✓ HousingSupports HousingProvides refundable tax credit (25% of rent, up to $1,000) for renters, directly reducing housing costs and increasing affordability for tenants.95% confidence

Sub-Topics Tax Credits Landlords Renters Tenant Rights

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in committee · Kentucky · House Jan 27, 2026

HB 426: AN ACT relating to a tax credit for renters.

Create a new section of KRS Chapter 141 to establish a refundable qualified rent payment credit for taxable years beginning on or after January 1, 2027, but before January 1, 2031, in the amount of 25% of the qualified rent payments made during the taxable year, not to exceed $1,000; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow reporting by the Department of Revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit (25% of rent, up to $1,000) for renters, directly offering tax relief to lower-income households through reduced tax burden.92% confidence ✓ HousingSupports HousingProvides refundable tax credit (25% of rent, up to $1,000) to lower rental costs for tenants, directly increasing housing affordability.95% confidence

Sub-Topics Tax Credits Property Taxes Renters Tenant Rights

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