Bill > SB47

This bill establishes a new refundable Kentucky child credit for families with children under six years old, aimed at providing financial support to families with lower and middle incomes. Specifically, the credit allows taxpayers to claim up to $1,000 per qualifying child for individuals earning less than $50,000 (single filers) or $100,000 (married filing jointly) annually. For those with incomes above these thresholds, the credit will be gradually reduced, with the amount decreasing by $10 for every $1 over the income limit. The credit will be available for tax years from 2026 to 2030 and will be prorated for part-year Kentucky residents. To ensure transparency and assess the credit's effectiveness, the Kentucky Department of Revenue is required to report detailed information about the credit's usage, including geographic distribution, total credits claimed, and breakdown by income ranges. The bill also modifies existing tax credit ordering rules to incorporate this new child credit into the state's tax credit system, ensuring it can be claimed alongside other available credits.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/sb47.html