KY HB725

Creates a new Kentucky income tax deduction for professional membership dues paid by individuals to maintain professional licenses or association memberships related to employment, effective for taxable years January 1, 2027 through December 31, 2030

Applies only to dues not already deducted under Section 162 of the Internal Revenue Code (business expense deduction)

Requires the Department of Revenue to report annually by November 1 to the Interim Joint Committee on Appropriations and Revenue on: number of returns claiming the deduction, total deductions claimed and reduced tax liability, and tax liability reduction broken down by $5,000 adjusted gross income ranges

Exempts the required reporting data from confidential taxpayer information protections under KRS Chapter 131

Amends KRS 141.019 (individual income tax calculation) and KRS 131.190 (taxpayer confidentiality provisions)