Budget & Taxes (Tax Incentives)

in committee · Kentucky · House Mar 11, 2026

HB 916: AN ACT relating to an ad valorem tax exemption for motor vehicles.

Amend KRS 132.4851 to exempt motor vehicles assessed under KRS 132.485 from state property taxes beginning on or after January 1, 2027; amend KRS 132.020 to conform.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by exempting motor vehicles from state property taxes, reducing financial burden on vehicle owners and promoting fiscal relief for taxpayers.75% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Kentucky · House Mar 10, 2026

HB 865: AN ACT relating to a sales and use tax exemption for diapers.

Amend KRS 139.010 to define "diaper"; amend KRS 139.480 to exempt all diapers from the sales and use tax; make technical corrections; EFFECTIVE August 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill exempts diapers from sales tax, providing tax relief for families with children, which aligns with supporting budget policies that reduce tax burdens on essential items.85% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Kentucky · House Mar 10, 2026

HB 830: AN ACT relating to the farm implements and farm machinery ad valorem tax exemption.

Amend KRS 132.096 relating to the exemption from state and local property taxes for farm implements and farm machinery, to remove ownership and use requirements; make technical changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill removes tax exemptions requirements for farm machinery, likely reducing tax burden on agricultural operations and promoting economic activity in farming sector.90% confidence

Sub-Topics Tax Incentives

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signed · Kentucky · House Apr 27, 2026

HB 869: AN ACT relating to fiscal matters and declaring an emergency.

Create a new section of Subchapter 20 of KRS Chapter 154 to establish the rural building and job creation revolving fund; specify uses of the fund to assist with compliance risk mitigation for the New Markets Tax Credits Program, or to issue low-interest loans to assist with construction of new buildings or renovations of existing buildings for lease to target wage economic development projects; require the Cabinet for Economic Development to report on the fund; create a new section of Subchapter 12 of KRS Chapter 154 to require the cabinet to work with the workforce liaison appointed by the president of the Kentucky Career and Technical College System to promote jobs created in the Commonwealth as a result of incentive programs; require the cabinet to conduct a feasibility and impact study on interstate reciprocity between state economic development programming; amend the general fund appropriation authorized in 2022 Ky. Acts ch. 199, Part I, B, 1.,(12) to not lapse and carry forward; APPROPRIATION; EMERGENCY.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates revolving fund for economic development and job creation, making appropriations to fund construction loans and compliance risk mitigation for tax credit programs, advancing fiscal management and economic growth.85% confidence ✓ HousingSupports HousingBill creates revolving fund to assist with construction of new buildings and renovations for lease, supporting housing development and economic development.75% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates revolving fund for job creation and wage economic development projects, indicating support for employment and workforce development.65% confidence

Sub-Topics Appropriations State Budget Tax Incentives Property Development Tags Economic Development

in committee · Kentucky · Senate Feb 26, 2026

SB 258: AN ACT relating to a sales and use tax exemption for diapers.

SB 258 exempts all diapers from Kentucky's sales and use tax. The bill amends state tax law to define "diaper" as an absorbent garment worn by people who cannot control bladder or bowel movements, and removes diapers from the list of taxable items. This directly affects parents, caregivers, and individuals purchasing diapers for infants, toddlers, or adults with incontinence needs by eliminating the tax on these essential products. The key change is a straightforward policy update to the tax code, making diapers tax-free at the point of sale.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts diapers from sales tax, providing direct tax relief for lower-income families purchasing essential items.95% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

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in committee · Kentucky · House Feb 13, 2026

HB 587: AN ACT proposing to create a new section of the Constitution of Kentucky relating to exempting property from taxation.

Propose to create a new section of the Constitution of Kentucky to allow the General Assembly to provide by law a property tax exemption for the permanent residence of an owner who is a veteran with a service-connected disability; require the law to specify the amount of the exemption, the qualifications for claiming the exemption, and whether the exemption transfers to the veteran's surviving spouse; prohibit more than 1 exemption per permanent residence; disallow the exemption to be combined with an exemption under Section 170 of the Constitution of Kentucky; provide ballot language; submit to voters for ratification or rejection.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for veterans with disabilities, reducing their tax burden - direct tax relief for lower-income group.95% confidence ✓ VeteransSupports VeteransBill creates property tax exemption for veterans with service-connected disabilities, directly expanding benefits and financial support for this group.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Healthcare

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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 11, 2026

HB 560: AN ACT relating to funding school districts that have a high percentage of tax-exempt property.

Amend KRS 45.021 to require the Finance and Administration Cabinet to contract with each local board of education of a district that has 65% or more in tax-exempt real property and that does not receive financial relief from other sources for the tax revenue lost from the tax-exempt property, to provide for recoupment to the board of at least 25% of the local board of education's lost tax revenue from the tax-exempt properties.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill mandates recoupment of tax revenue lost by school districts due to tax-exempt property, directly supporting budget stability for education funding.95% confidence ✓ EducationSupports EducationRecoups 25% of lost tax revenue for school districts with high tax-exempt property, directly addressing funding stability for K-12 education.95% confidence

Sub-Topics Property Tax State Budget Tax Incentives School Funding

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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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