Introduced

Passed House

Passed Senate

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · January 14, 2026

To Appropriations & Revenue (H)

Introduced January 7, 2026

House

Adjourned Sine Die

2026 Regular Session

HB131

AN 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.

Education, Higher Taxation Taxation, Income--Individual Reports Mandated

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This bill would create a new tax credit for Kentuckians who contribute money to a Kentucky 529 college savings account, meaning they could reduce what they owe in state income taxes based on those contributions. The credit would be available for tax years 2027 through 2030. The state's Department of Revenue would also be required to report on how the credit is being used. Who it may affect: families and individuals saving for higher education costs through a Kentucky 529 college savings account.

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