Bill > HB869

This bill establishes an economic development credit for approved companies, which is refundable and can be claimed against certain taxes starting in taxable years beginning on or after January 1, 2026, with an annual cap on the total credit amount. It also modifies existing tax laws related to various economic development incentives, including skills training investment credits, film industry incentives, tourism development projects, and angel investor tax credits, often by introducing or adjusting definitions and requirements for "heritage counties" (counties with specific population density and growth rankings) and other economic development programs. Additionally, the bill directs the Cabinet for Economic Development to study interstate reciprocity in economic development programming and to work with the Kentucky Community and Technical College System to promote jobs created through incentive programs. It also introduces a new credit for the production of alternative jet fuel, with varying rates based on the type of fuel and feedstock origin, and a sales tax rebate for commercial airports selling agriculturally based alternative jet fuel. The bill also makes several other changes to tax laws, including adjustments to inheritance tax classifications, provisions for the taxation of fantasy contests and prediction markets, and modifications to regulations for merchant electric generating facilities and sports wagering. Finally, it declares an emergency to allow certain provisions to take effect immediately upon passage.