AN ACT relating to a tax credit for renters.

Create a new section of KRS Chapter 141 to establish a refundable qualified rent payment credit for taxable years beginning on or after January 1, 2027, but before January 1, 2031, in the amount of 25% of the qualified rent payments made during the taxable year, not to exceed $1,000; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow reporting by the Department of Revenue.

Introduced: January 16, 2026

Last action: January 27, 2026

To Appropriations & Revenue (H)

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This bill would create a temporary tax credit for Kentuckians who pay rent, available for tax years 2027 through 2030. Eligible renters could receive a credit worth 25% of their rent payments, up to a maximum of $1,000, and the credit would be refundable, meaning people could receive it even if they owe no state income tax. The bill also allows the Department of Revenue to report on the credit's use. Who it may affect: renters across Kentucky, particularly those with lower incomes who may benefit most from a refundable credit.

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