Bill > HB629

This bill, titled the Living Organ and Bone Marrow Donor Assistance Act of 2026, establishes a new tax credit for employers in Kentucky who provide paid leave to employees who are Kentucky residents and donate an organ or bone marrow. This "leave of absence period" is limited to the hourly equivalent of 40 hours per donor and does not include the use of regular annual or sick leave. The credit, available for taxable years between 2027 and 2030, is nonrefundable and can be applied against various business taxes, including insurance company taxes and income taxes, with specific ordering rules outlined in KRS 141.0205 to determine its priority among other tax credits. The credit amount is calculated based on the employee's compensation during the leave and the cost of temporary replacement help. Unused credit can be carried forward for up to three years. Additionally, the bill amends KRS 131.190 to allow the Department of Revenue to disclose certain information about this new tax credit to the Legislative Research Commission for evaluation purposes.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/hb629.html