Bill > HB176

This bill creates a new refundable income tax credit for taxpayers who have paid certain federal firearm-related taxes, specifically the firearm making tax, firearm special occupational tax, or firearm transfer tax. The credit will be available for tax years beginning between January 1, 2026, and January 1, 2030. Eligible taxpayers can claim a credit equal to the total amount of these federal taxes paid during the taxable year. To claim the credit, taxpayers must submit verification of the taxes paid, such as a receipt from the Bureau of Alcohol, Tobacco, Firearms and Explosives or a copy of a special tax stamp. The bill also requires the Kentucky Department of Revenue to provide annual reports to the Legislative Research Commission, including details about the number of returns claiming the credit, total credit amounts, geographic distribution, and breakdown by income ranges. The credit will be added to the existing list of tax credits in Kentucky's tax code, positioned among other refundable credits, and is designed to provide financial relief to individuals and businesses involved in firearm-related activities who are subject to specific federal taxes.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/hb176.html