AN ACT relating to an eligible child tax credit.

Create a new section in KRS Chapter 141 to establish a nonrefundable individual income tax credit for an eligible child; define "eligible child"; allow credit for taxable years beginning on or after January 1, 2027, but before January 1, 2031; establish that the credit amount is equal to $4,000 per eligible child, not to exceed $8,000 per return, per taxable year; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Introduced: January 27, 2026

Last action: February 3, 2026

To Appropriations & Revenue (H)

Read the full text Kentucky Legislature LegiScan

AI-generated — always verify with primary sources

Plain-language summary

Beta

This bill would create a new state income tax credit for Kentucky families with eligible children, allowing them to reduce the amount they owe in state income taxes. The credit would be worth up to $4,000 per qualifying child, capped at $8,000 per tax return, and would apply to tax years 2027 through 2030. Because the credit is nonrefundable, it can reduce a taxpayer's bill to zero but would not result in a refund if the credit exceeds what is owed. Who it may affect: Kentucky taxpayers who have eligible children and owe state income tax.

Open official bill text (PDF)·Report a problem with the summary