AN ACT relating to a tax credit for renters.

Create a new section of KRS Chapter 141 to establish a refundable qualified rent payment credit for taxable years beginning on or after January 1, 2026, but before January 1, 2030, in the amount of 25 percent of the qualified rent payments made during the taxable year, not to exceed $1,000; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow reporting by the Department of Revenue.

Introduced: February 14, 2025

Last action: February 21, 2025

To Appropriations & Revenue (H)

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This bill would create a temporary tax credit for Kentucky renters, running from 2026 through 2029. Eligible renters could claim 25 percent of their annual rent payments as a refundable credit on their state taxes, up to a maximum of $1,000. Because the credit is refundable, renters could receive it even if they owe little or no state income tax. Who it may affect: Kentuckians who pay rent for their housing.

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