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.
Introduced: January 10, 2025
Last action: February 4, 2025
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
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Co-sponsors (20)
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