Bill > HB590

This bill establishes a new tax credit program for employers who maintain apprenticeship programs in Kentucky. The credit, available for taxable years between 2026 and 2030, allows qualified employers to claim a nonrefundable tax credit for hiring and training apprentices. The credit is limited to $2,000 per apprentice, or $3,500 if the apprentice is from or the employer is located in an "enhanced incentive county" (a county certified by the Kentucky Economic Development Finance Authority). Employers can receive credit for up to 50% of wages paid to an apprentice or 100% of training and education expenses, including educational programs, classroom expenses, training materials, and instructional costs. To qualify, employers must provide verification that the apprenticeship program is registered with the Department of Workforce Development and meet other documentation requirements. The bill also mandates that the Department of Revenue report annually to the Legislative Research Commission on the credit's implementation, including the number of returns claiming the credit, total credits claimed, and detailed breakdowns by county and income ranges. This reporting will help the General Assembly evaluate the effectiveness of the apprenticeship tax credit program.

Budget and Finance

https://apps.legislature.ky.gov/record/25RS/hb590.html