Budget & Taxes (Income Tax)

in committee · Kentucky · House Jan 29, 2026

HB 462: AN ACT relating to tax increment financing.

HB 462 permanently removes an expiration date from Kentucky's calculation method for tax increment financing (TIF) projects. It makes the definition of "modified new revenues for income tax" permanent, affecting how local development agencies calculate state tax revenues used to fund infrastructure. This change ensures TIF projects can continue using this specific tax revenue calculation without future expiration. It directly impacts urban renewal authorities, development agencies, and other local entities that use TIF under KRS Chapter 154 to finance public infrastructure.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermanently extends TIF tax revenue calculation, ensuring ongoing infrastructure funding without expiration. Supports fiscal management of development projects through stable tax allocation.90% confidence

Sub-Topics Income Tax Revenue Tax Incentives

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in committee · Kentucky · House Jan 14, 2026

HB 167: AN ACT relating to a tax deduction for theft losses.

HB 167 allows Kentucky taxpayers to deduct theft losses on their state income tax returns, aligning with the federal Internal Revenue Code's Section 165(e). This provision directly affects individuals who experienced property theft, enabling them to reduce their taxable income by the amount of the loss. The bill amends Kentucky law to explicitly permit this deduction, which was previously excluded under state tax rules. It does not create new eligibility criteria but adopts the federal standard for theft loss deductions. This change applies to all individual taxpayers (not corporations) who qualify under federal guidelines.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for theft losses, providing individual tax relief aligning with federal standard, reducing taxable income for affected residents.95% confidence

Sub-Topics Income Tax

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in committee · Kentucky · House Jan 14, 2026

HB 152: AN ACT relating to the individual income tax rate.

Amend KRS 141.020, relating to the individual income tax, to establish graduated individual income tax rates for taxable years beginning on or after January 1, 2027; remove provisions relating to tax rate reduction procedures.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes graduated income tax rates and removes tax rate reduction procedures, preventing future tax cuts and promoting progressive fiscal management through structured revenue generation.85% confidence

Sub-Topics Business Taxes Income Tax State Budget

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in committee · Kentucky · House Jan 13, 2026

HB 13: AN ACT relating to the individual income tax rate.

Amend KRS 141.020 to establish a graduated tax rate for net income of $300,000 or less; establish a flat tax rate of 6% for net incomes in excess of $300,000; and remove provisions relating to tax rate reduction procedures.

Topics ✓ Budget & TaxesSupports Budget & TaxesGraduated rates for lower incomes ($300k or less) and flat 6% for high earners support progressive taxation, aligning with fiscal responsibility indicators.95% confidence

Sub-Topics Business Taxes Income Tax State Budget

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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 82: AN ACT relating to the sale or exchange of currency or bullion.

HB 82 modifies Kentucky's tax code to exclude capital gains and capital losses from the sale or exchange of currency (like foreign coins) or bullion (precious metals) from taxable income. This change directly affects Kentucky residents and businesses that buy, sell, or trade physical currency or precious metals, such as gold or silver coins. The bill amends Section 141.019 of Kentucky law to implement this exclusion, effective for tax years starting January 1, 2027. It removes these transactions from state income tax calculations, aligning Kentucky's treatment with federal rules for such sales.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes capital gains on currency/bullion sales, reducing state tax revenue through tax break for specific transactions90% confidence

Sub-Topics Income Tax

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signed · Kentucky · Senate Apr 3, 2026

SB 69: AN ACT relating to the autism spectrum disorder trust fund and declaring an emergency.

Create a new section of KRS Chapter 141 to allow a contribution to be made to the autism spectrum disorder trust fund through an income tax refund designation effective for taxable years beginning on or after January 1, 2026; require the designation to be printed on the face of the individual income tax form; require a description of the trust fund in the individual income tax return instructions; require the Department of Revenue to transfer the funds designated to the autism spectrum disorder trust fund; create a new section of KRS Chapter 211 to create the autism spectrum disorder trust fund; amend KRS194A.624 to require the Advisory Council on Autism Spectrum Disorders to administer the trust fund; require the Cabinet for Health and Family Services to submit an annual report to the Governor and the Legislative Research Commission and to promulgate administrative regulations; EMERGENCY.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates voluntary income tax designation to fund autism trust, advancing public health funding via tax mechanism without mandatory tax increase.90% confidence

Sub-Topics Income Tax

died · Kentucky · House Feb 19, 2026

HB 207: Withdrawn.

Amend KRS 141.019, relating to income tax, to define "professional membership dues" and "union dues"; allow a deduction from gross income for union dues and professional membership dues paid for taxable years beginning on or after January 1, 2027, but before January 1, 2031, and require the Department of Revenue to annually report information about this deduction to the Legislative Research Commission; amend KRS 131.190 to allow the department to report on the exclusion.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for union dues, providing relief to workers by reducing taxable income under KRS 141.019.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentAllows tax deduction for union dues, strengthening collective bargaining and reducing financial burden on workers for union membership.95% confidence

Sub-Topics Income Tax Collective Bargaining

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in committee · Kentucky · House Jan 14, 2026

HB 217: AN ACT relating to designating income tax refunds to the animal control and care fund.

Create a new section of KRS Chapter 141 to provide taxpayers the option of having all or a portion of their individual income tax refund be contributed to the animal control and care fund created in KRS 258.119; establish requirements for administering the designation.

Topics ✓ Budget & TaxesSupports Budget & TaxesVoluntary tax refund designation funds animal control program, increasing public service funding without mandatory tax increases.95% confidence

Sub-Topics Income Tax

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