HB131
Log in to followAN ACT relating to a tax credit for Kentucky Educational Savings Plan Trust account contributions.
Create a new section of KRS Chapter 141 to establish a nonrefundable credit against the tax imposed under KRS 141.020 for qualifying contributions made to a Kentucky Educational Savings Plan trust account in accordance with the guidelines in 26 U.S.C. sec. 529; for taxable years beginning on or after January 1, 2027, but before January 1, 2031; amend KRS 141.0205 to provide the ordering of the tax credit; amend KRS 131.190 to allow the department to report on the credit.
Introduced: January 7, 2026
Last action: January 14, 2026
Plain-language summary
This bill would create a new tax credit for Kentuckians who contribute money to a Kentucky Educational Savings Plan (commonly known as a 529 account), which is a savings account designed to help pay for education expenses. The credit would reduce the amount of state income tax owed and would be available for tax years 2027 through 2030. The credit is nonrefundable, meaning it can lower a tax bill to zero but would not result in a refund. Who it may affect: Kentuckians who contribute to a 529 educational savings account, particularly families saving for future education costs.
Legislative History
Primary Sponsor
Co-sponsors (1)
