KY HB768

Creates a refundable Kentucky working credit equal to 30% of the federal earned income credit, capped at $2,000 per return, for taxable years beginning January 1, 2027 through December 31, 2030

Taxpayers who qualify for the family size tax credit under KRS 141.066(3) are ineligible for the Kentucky working credit

Part-year and nonresident taxpayers receive a prorated credit based on their Kentucky adjusted gross income relative to total adjusted gross income

Requires the Department of Revenue to report annually by November 1 (starting 2028) to the Legislative Research Commission on credit usage, including number of returns filed, credits claimed by income range (in $5,000 increments), and number of qualifying dependents

Amends KRS 141.0205 to add the Kentucky working credit to the ordering of refundable tax credits and amends KRS 131.190 to authorize disclosure of credit data to the Legislative Research Commission