Bill > HB802

This bill establishes a 2026 toll relief tax credit for Kentucky residents who pay tolls on specific bridges connecting Louisville, Kentucky, and Southern Indiana. The credit applies specifically to three bridges: the Interstate 65 Abraham Lincoln Bridge, the Interstate 65 John F. Kennedy Memorial Bridge, and the Lewis and Clark Bridge. Eligible motor vehicle owners can claim a nonrefundable tax credit on their state income tax return for toll payments made during the 2026 calendar year, with the credit amount equal to the actual tolls paid. The credit is limited to residents who own registered motor vehicles and file an income tax return, and importantly, cannot be carried forward or backward to another tax year. Taxpayers must provide receipts or invoices when claiming the credit, and the Kentucky Department of Revenue is required to report detailed information about the credit's usage to the Legislative Research Commission, including the number of returns claiming the credit, total credits claimed, and a breakdown of reduced tax liability by income ranges. The bill also modifies existing tax credit ordering rules to incorporate this new toll relief credit into the state's tax credit application process.