KY HB694

Creates a nonrefundable income tax credit for Kentucky employers who hire individuals holding a certificate of employability (issued to people with criminal backgrounds under KRS 196.281), effective for taxable years January 1, 2027 through December 31, 2030

Credit equals up to 50% of wages paid to eligible employees, capped at $2,000 per employee, or $3,500 per employee if either the employee or employer is located in an enhanced incentive county certified by the Kentucky Economic Development Finance Authority

Requires employers claiming the credit to verify the employee's certificate of employability, provide employee identification information, and document wages paid; the Department of Revenue must coordinate with the Department of Corrections to verify eligibility

Mandates annual reporting by November 1 to the Legislative Research Commission on credit usage, including number of returns claiming the credit, total credits claimed, number of eligible employees hired, and breakdown by county and income ranges

Amends KRS 141.0205 to establish the ordering of this credit among other tax credits and amends KRS 131.190 to authorize disclosure of credit-related information to the Legislative Research Commission