summary
Introduced
02/26/2026
02/26/2026
In Committee
03/05/2026
03/05/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Create a new section of KRS Chapter 141 to establish a refundable Kentucky working credit equal to 30% of the federal earned income credit allowed for the taxable year; a taxpayer's modified gross income to be in excess of the amount eligible for the family size tax credit allowed in KRS 141.066(limit the credit to $2,000 per taxable year; make credit effective for taxable years beginning on or after January 1, 2027, but before January 1, 2031; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.
AI Summary
This bill establishes a new refundable Kentucky working credit for taxable years beginning on or after January 1, 2027, and before January 1, 2031, which will be equal to 30% of the federal earned income credit, a tax credit designed to help low-to-moderate income working individuals and families, with a maximum credit of $2,000 per tax return. However, taxpayers whose modified gross income makes them eligible for the family size tax credit will not qualify for this new working credit. The bill also specifies the order in which this new credit will be applied against other tax credits and requires the Department of Revenue to report annually on the usage and impact of the Kentucky working credit to the Legislative Research Commission, with this reporting information being publicly accessible.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
to Appropriations & Revenue (H) (on 03/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/hb768.html |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/hb768/orig_bill.pdf |
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