AN ACT relating to contributions made to a Kentucky Saves account.

Amend KRS 141.019 to establish an individual income tax exclusion for amounts contributed to a Kentucky Saves account for taxable years beginning on or after January 1, 2027, but before January 1, 2031; create a new section of KRS Chapter 141 to establish the parameters for the Kentucky Saves exclusion and to establish the Kentucky Saves tax credit; define terms; require the Department of Revenue to report annually on the exclusion and tax credit; amend KRS 141.0205 to provide ordering of the tax credit; amend KRS 131.190 to allow the Department of Revenue to report on the exclusion and tax credit.

Introduced: January 6, 2026

Last action: January 13, 2026

To Appropriations & Revenue (H)

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This bill would allow Kentuckians to exclude money they contribute to a Kentucky Saves account from their state income taxes, starting in 2027 and running through 2030. It also creates a related tax credit connected to those contributions. The Department of Revenue would be required to report each year on how the exclusion and credit are being used. Who it may affect: Kentucky residents who contribute to a Kentucky Saves account and file state income taxes.

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