Bill > HB131

This bill establishes a nonrefundable tax credit for individuals contributing to a Kentucky Educational Savings Plan Trust account, which is a trust designed for saving for qualified educational expenses, as defined by federal law (26 U.S.C. sec. 529). This credit will be available for tax years beginning on or after January 1, 2027, and before January 1, 2031. The credit will be equal to the total contributions made, up to a maximum of $19,000 per taxpayer annually. The bill also amends existing law to specify the order in which this new credit will be applied alongside other tax credits, placing it after other personal tax credits but before refundable credits. Additionally, it requires the Department of Revenue to report annually to the Legislative Research Commission on the number of taxpayers claiming this credit, the total amount claimed, and a breakdown by county and income level, ensuring transparency and providing data for legislative review.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb131.html