Bill > HB158

This bill establishes a new tax credit for qualified home modifications made to a primary residence within Kentucky, beginning for taxable years on or after January 1, 2027, and ending before January 1, 2031. An "eligible taxpayer" is an individual who pays for these modifications for an "occupant" who is either 65 or older or has a physical or mental impairment that substantially limits major life activities for at least 12 months, and the taxpayer does not receive reimbursement from the occupant. A "qualified home modification" refers to any upgrade or installation that increases accessibility for the occupant in their "qualified residence," which includes single-family homes or multi-family units. The credit is nonrefundable, meaning it can reduce a taxpayer's tax liability to zero but will not result in a refund, and it is capped at $7,500 per taxable year for the actual cost of the modification. To ensure compliance, the Department of Revenue can request invoices and documentation proving eligibility. The bill also amends existing law to specify that this new qualified home modification credit will be applied after other nonrefundable personal tax credits but before refundable credits. Additionally, it allows the Department of Revenue to report on the use of this credit, including taxpayer location by county, the amount of credit claimed, total credits claimed, and the number of returns claiming the credit broken down by income ranges, with this information being publicly accessible for legislative evaluation.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb158.html