AN ACT relating to an income tax credit.

Create a new section of KRS Chapter 141 to allow a refundable income tax credit for the firearm making tax, firearm special occupational tax, or firearm transfer tax for taxable years beginning on or after January 1, 2026, but before January 1, 2030; amend KRS 141.0205 and 131.190 to order the credit.

Introduced: January 9, 2025

Last action: February 4, 2025

To Appropriations & Revenue (H)

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This bill would create a refundable Kentucky income tax credit to offset certain federal taxes that apply to firearms, specifically the federal taxes on making, transferring, or holding a special occupational status related to firearms. The credit would be available for tax years 2026 through 2029. A refundable credit means that if the credit exceeds what a person owes in state income tax, they could receive the remainder as a refund. Who it may affect: Kentuckians who pay federal firearms-related excise or occupational taxes, such as firearms manufacturers, dealers, or individuals involved in regulated firearm transfers.

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