Bill > HB575

This bill amends Kentucky state income tax law to create a temporary deduction for union dues and professional membership dues for taxpayers from January 1, 2026, to January 1, 2030. Specifically, the bill allows individuals to exclude from their gross income the total amount of dues, fees, assessments, or expenses required to maintain professional licenses or association memberships and union membership fees. Professional membership dues are defined as charges related to maintaining a professional license or association membership connected to an individual's employment, while union dues are defined as fees required of private or public employees represented by a labor organization. To help the state legislature evaluate the impact of this tax deduction, the Department of Revenue is required to submit annual reports to the Legislative Research Commission and the Interim Joint Committee on Appropriations and Revenue. These reports must include the number of tax returns claiming the exclusion, the total amount of exclusions claimed, and a breakdown of reduced tax liability by income ranges. The bill aims to provide a temporary financial benefit to workers by reducing their taxable income through these specific deductions.