Bill > HB311

This bill establishes a tax credit for employers who provide paid leave to employees donating organs or bone marrow, effective for taxable years from 2026 to 2030. The credit applies to employers who provide up to 40 hours of paid leave to a "living donor" (a Kentucky resident employee donating an organ or bone marrow), and can be applied against various state taxes including insurance company taxes and corporate income taxes. The credit amount is equal to the employee's compensation during the leave period and any costs of temporary replacement help. Employers must document the credit claim with specific information, including proof of the leave's purpose and duration. The Kentucky Department of Revenue is required to report annually to the Legislative Research Commission about the credit's usage, including the number of returns claiming the credit and total amount claimed, broken down by income ranges for different types of taxpayers. The bill defines an "organ" as including parts of the intestine, kidney, liver, lung, pancreas, or uterus, and specifies that unused credits can be carried forward for up to three taxable years. This legislation is officially named the Living Organ and Bone Marrow Donor Assistance Act of 2025.