Bill > HB559

This bill creates a new tax credit for renters in Kentucky, designed to provide financial relief to low-income residents. Specifically, for tax years between 2026 and 2030, qualified renters with household incomes at or below 133% of the federal poverty line can claim a refundable tax credit equal to 25% of their qualified rent payments, not to exceed $1,000 per year. "Qualified rent payments" include monetary amounts paid to occupy a rented dwelling within Kentucky, excluding advance rent payments and security deposits. Eligible dwellings include single-family houses, apartments, duplexes, condominiums, prefabricated homes, and other permanent residences where the renter lives for at least six months of the year. The bill requires the Department of Revenue to report annually on the tax credits claimed, including total credits claimed, number of returns claiming the credit, credits claimed by county, and credits claimed by income range. This reporting will help policymakers understand the impact and effectiveness of the tax credit program. The bill also amends existing tax law to incorporate this new credit into the state's tax credit application process, ensuring it can be claimed alongside other existing credits.