Introduced January 10, 2025
HB195
Log in to followAN ACT relating to tax incentives for first-time home buyers.
Create a new section of KRS Chapter 141 to define terms; establish a tax deduction for contributions made to an eligible savings account by a first-time home buyer and allow an exclusion from income for any interest earned from an eligible savings account of a first-time home buyer effective for taxable years beginning on or after January 1, 2026, but before January 1, 2036; require the Department of Revenue to report to the Legislative Research Commission and the Interim Joint Committee on Appropriations and Revenue; amend KRS 141.019 and 131.190 to conform.
Plain-language summary
This bill would create a new state tax deduction for money that first-time home buyers put into a designated savings account to use toward purchasing a home, and it would also exempt any interest earned in that account from state income tax. These tax benefits would be available for tax years starting January 1, 2026 through the end of 2035. The Department of Revenue would be required to report on the program to state lawmakers. Who it may affect: Kentuckians who have not previously owned a home and are saving to buy one for the first time.
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Legislative History
Primary Sponsor
Susan Tyler Witten
Representative · House District 031
Co-sponsors (20)
Kimberly Banta
Representative · House District 063
Tina Bojanowski
Representative · House District 032
Ken Fleming
Representative · House District 048
Alan Gentry
Representative · House District 046
Daniel Grossberg
Representative · House District 030
Samara Heavrin
Representative · House District 018
Kevin Jackson
Representative · House District 020
Kim King
Representative · House District 055
Chris Lewis
Representative · House District 029
Derek Lewis
Representative · House District 090
Scott Lewis
Representative · House District 014
Jason Nemes
Representative · House District 033
J.T. Payne
Representative · House District 011
Michael Pollock
Representative · House District 051
Steve Riley
Representative · House District 023
Rachel Roarx
Representative · House District 038
Tom Smith
Representative · House District 086
Pamela Stevenson
Representative · House District 043
Walker Thomas
Representative · House District 008
Joshua Watkins
Representative · House District 042
Bill Text Versions
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