KY HB343

Kentucky employers may claim a nonrefundable tax credit equal to 20% of contributions made to employees' Kentucky Educational Savings Plan Trust accounts or STABLE Kentucky accounts, with a maximum credit of $500 per employee per taxable year, effective January 1, 2027

Unused credits may be carried forward for up to five taxable years and applied against individual income tax or corporate income tax

Employers must document claims by providing their tax identification information, employee Social Security numbers, account numbers, and contribution amounts for each employee

The Department of Revenue must report annually by November 1 to the Legislative Research Commission on the number of returns claiming the credit, total amounts claimed, and breakdowns by income ranges

The bill amends KRS 141.0205 to establish the ordering priority for this new credit among other nonrefundable business incentive credits