Budget & Taxes (Tax Incentives)

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.

HB 28 repeals Kentucky's Education Opportunity Account Program by removing its associated tax credit (KRS 141.522) from the state's tax code. This bill eliminates the specific tax credit that allowed taxpayers to claim benefits under the Education Opportunity Account Program. The change directly affects individuals or entities that previously claimed this credit, discontinuing the program's tax incentive component. The bill focuses solely on removing this provision from existing tax credit ordering rules, with no new program or funding established.

Amend KRS 143A.030 to remove fluorspar from the severance tax exemption and make it taxable as a natural resource; amend KRS 143A.010 to add fluorspar to the definition of "natural resources."