Budget & Taxes (Tax Credits)

in committee · Kentucky · House Jan 14, 2026

HB 225: AN ACT relating to a tax credit for volunteer firefighters.

Create a new section of KRS Chapter 141 to establish a refundable income tax credit for certain volunteer firefighters; declare the purpose of the credit; require annual reporting to the Legislative Research Commission to evaluate the impact of the credit; amend KRS 141.0205 to provide the ordering of the credit; amend KRS 131.190 to allow confidential tax return information to be shared with the Legislative Research Commission.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit for volunteer firefighters, providing direct tax relief to lower-income individuals in this sector, aligning with tax relief indicators.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Kentucky · House Jan 13, 2026

HB 27: AN ACT relating to contributions made to a Kentucky Saves account.

Amend KRS 141.019 to establish an individual income tax exclusion for amounts contributed to a Kentucky Saves account for taxable years beginning on or after January 1, 2027, but before January 1, 2031; create a new section of KRS Chapter 141 to establish the parameters for the Kentucky Saves exclusion and to establish the Kentucky Saves tax credit; define terms; require the Department of Revenue to report annually on the exclusion and tax credit; amend KRS 141.0205 to provide ordering of the tax credit; amend KRS 131.190 to allow the Department of Revenue to report on the exclusion and tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax exclusion for savings contributions, reducing taxable income and providing tax relief per bill's tax exclusion provision.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Kentucky · House Jan 14, 2026

HB 131: AN ACT relating to a tax credit for Kentucky Educational Savings Plan Trust account contributions.

Create a new section of KRS Chapter 141 to establish a nonrefundable credit against the tax imposed under KRS 141.020 for qualifying contributions made to a Kentucky Educational Savings Plan trust account in accordance with the guidelines in 26 U.S.C. sec. 529; for taxable years beginning on or after January 1, 2027, but before January 1, 2031; amend KRS 141.0205 to provide the ordering of the tax credit; amend KRS 131.190 to allow the department to report on the credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates nonrefundable tax credit for 529 plan contributions, reducing taxable income for education savings, aligning with tax relief indicators.85% confidence ✓ EducationSupports EducationProvides tax credit for 529 savings plans, incentivizing higher education savings and expanding access to postsecondary funding through tax incentives.90% confidence

Sub-Topics Tax Credits

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in committee · Kentucky · House Jan 14, 2026

HB 158: AN ACT relating to a tax credit for qualified home modifications.

Create a new section of KRS Chapter 141 to establish the qualified home modification credit against the tax imposed in KRS 141.020; 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 tax credit for home modifications, providing direct tax relief for individuals (especially aged persons), aligning with tax relief indicators for middle/lower income.95% confidence

Sub-Topics Tax Credits

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in committee · Kentucky · House Jan 14, 2026

HB 88: AN ACT relating to the qualified elementary and secondary education scholarship federal tax credit.

Create a new section of KRS Chapter 43 to elect for the Commonwealth to participate in the qualified elementary and secondary education scholarship federal tax credit program; designate the Auditor of Public Accounts as the officer to submit the Commonwealth's election and list of scholarship granting organizations to the United States Secretary of the Treasury; require the Auditor to maintain the Commonwealth's list of scholarship granting organizations and maintain certain information on the Auditor's website; authorize the Auditor to promulgate administrative regulations necessary to establish the list; and authorize the Auditor to enter into agreements to assist with implementing the section.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables federal tax credit for education scholarships, providing tax relief to eligible families under federal program participation.95% confidence ✓ EducationSupports EducationCreates federal tax credit for K-12 scholarships, expanding educational access options through private school funding mechanisms.90% confidence

Sub-Topics Tax Credits School Choice Student Financial Aid

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in committee · Kentucky · House Jan 14, 2026

HB 159: AN ACT relating to an accessible home income tax credit.

Create a new section of KRS Chapter 141 to establish the accessible home credit 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 an income tax credit (tax relief) for accessible housing, directly advancing individual taxation policy to provide fiscal benefit to taxpayers.95% confidence ✓ HousingSupports HousingCreates tax credit for accessible home modifications, supporting affordable housing access for aging populations and individuals with disabilities.90% confidence

Sub-Topics Income Tax Tax Credits Property Taxes

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