Introduced

Passed House

Passed Senate

Became law

Adjourned sine die. The bill was pending when the session ended, so it did not pass.

Last action · March 5, 2026

To Appropriations & Revenue (H)

Introduced February 26, 2026

House

Adjourned Sine Die

2026 Regular Session

HB768

AN ACT relating to a Kentucky working credit.

Create a new section of KRS Chapter 141 to establish a refundable Kentucky working credit equal to 30% of the federal earned income credit allowed for the taxable year; a taxpayer's modified gross income to be in excess of the amount eligible for the family size tax credit allowed in KRS 141.066(limit the credit to $2,000 per taxable year; make credit effective for taxable years beginning on or after January 1, 2027, but before January 1, 2031; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Taxation Taxation, Income--Individual Wages and Hours

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This bill would create a new state tax credit called the Kentucky working credit, giving eligible workers a refund equal to 30% of their federal earned income credit, up to $2,000 per year. It would be available for tax years 2027 through 2030, and is aimed at workers whose income falls above the threshold for Kentucky's existing family size tax credit. The Department of Revenue would be authorized to report on how the credit is used. Who it may affect: lower- and moderate-income working Kentuckians who currently claim the federal earned income credit.

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