KY HB629

Establishes a nonrefundable tax credit for employers who provide paid leave to employees donating organs or bone marrow, effective for taxable years January 1, 2027 through January 1, 2031

Credit amount equals the employee's compensation during the leave period plus any temporary replacement help costs, with leave capped at 40 hours per living donor

Eligible organs include intestine, kidney, liver, lung, pancreas, or uterus; the employee must be a Kentucky resident absent from work solely for donation purposes

Unused credits may be carried forward up to three years but cannot be carried back; pass-through entities distribute credits to partners/members/shareholders based on distributive share

Department of Revenue must report annually to the Legislative Research Commission on the number of claims and total credit amounts, beginning December 1, 2028