Kentucky
General Assembly

02/19/25	introduced in House to Committee on Committees (H)
02/20/25	to Economic Development & Workforce Investment (H)
02/27/25	reported favorably, 1st reading, to Calendar with Committee Substitute (1)
02/28/25	2nd reading, to Rules posted for passage in the Regular Orders of the Day for Tuesday, March 04, 2025
03/05/25	floor amendment (1) filed to Committee Substitute
03/06/25	taken from the Orders of the Day recommitted to Appropriations & Revenue (H)
03/11/25	reported favorably, to Rules with Committee Substitute (2) and Committee Amendment (1-title) taken from Rules placed in the Orders of the Day 3rd reading, passed 67-18 with Committee Substitute (2) and Committee Amendment (1-title) received in Senate to Committee on Committees (S) to Appropriations & Revenue (S) 1st reading
03/12/25	floor amendments (1) and (2) filed

Amendment	House Committee Substitute 1
Summary	Retain original provisions; make a technical correction; prohibit certain payments from being taken considered for determining if thresholds within the contract have been met.
Index Headings	Economic Development - Development area, conditions State Agencies - Cabinet for Economic Development, development area Cities, First Class - Development area, conditions Counties with Cities of the First Class - Development area, conditions

Amendment	House Committee Substitute 2
Summary	Retain original provisions; amend KRS 131.250 to require electronic filing of returns and electronic payments of tax beginning July 1, 2026, for certain brewers; amend KRS 132.010 and 136.010 to remove date limitations for certain property included within the definition of "real property"; amend KRS 132.140, 138.208 and 157.362 to require that the property tax reductions on distilled spirits be based on the assessed value instead of the applicable tax rates; amend 141.020 to allow the individual income tax rate to reduce by tenths, rather than one-half of a percentage point, for taxable years beginning on or after January 1, 2028; amend KRS 141.381 to extend the current training incentives for 10 years to April 15, 2037; amend KRS 148.851, 148.853, 148.855, and 148.859 to allow incentives for certain tourism attractions and lodging facility projects; amend KRS 154.30-050, 91A.390, 154.30-010, and 154.30-030 to allow a revised project to reapply under certain provisions; amend KRS 241.010 to add definitions; amend KRS 243.720, 243.730, 243.790, 243.850, and 243.884 to impose an excise tax and a wholesale sales tax on cannabis-infused beverages; create a new section of KRS Chapter 246 to state that the General Assembly is committed to research and development of an alternative fuels policy; create a new section of KRS Chapter 139 to allow a sales tax refund to certain facility operators and sponsoring entities of entertainment events; amend KRS 131.190 to mandate the Department of Revenue report on certain sales tax refunds; prohibit refunds related to certain real property and apply the certain real property provisions retroactively to property assessed on or after December 31, 2022; EFFECTIVE, in part, July 1, 2025.
Index Headings	Economic Development - Development area, conditions Effective Dates, Delayed - Sales and use tax, entertainment events, July 1, 2025 Effective Dates, Delayed - Taxation, cannabis-infused drinks, July 1, 2025 State Agencies - Cabinet for Economic Development, development area State Agencies - Department of Revenue, mandated report State Agencies - Tourism, tourism attractions, lodging facility projects Taxation - Cannabis-infused beverages, imposition Taxation - Income tax incentives, metropolitan college, tourism development, employee wage assessments Taxation - Individual income tax, tax rate reduction conditions Taxation - Property tax, pipelines, distilled spirits Taxation - Tax increment financing incentives Taxation, Income--Individual - Tax rate reduction conditions Taxation, Property - Distilled spirits Taxation, Property - Pipelines Taxation, Sales and Use - Refunds, entertainment events Tourism - Incentives, tourism attractions, lodging facility projects Agriculture - Alternative fuels, research Cities, First Class - Development area, conditions Counties with Cities of the First Class - Development area, conditions Reports Mandated - Department of Revenue, sales tax refund, entertainment events

Amendment	House Committee Amendment 1
Sponsor	J. Petrie
Summary	Make title amendment.
Index Headings	Title Amendments - HB 775

Amendment	House Floor Amendment 1
Sponsor	D. Gordon
Summary	Create a new section of KRS Chapter 65 to define terms; allow two or more local governments to form a regional industrial taxing district; establish requirements for an economic development project in a regional industrial taxing district; allow the district to levy a special ad valorem tax; allow local governments to impose an occupational license fee on businesses, trades, and professions performed, rendered, or conducted within a regional industrial taxing district; establish requirements for the occupational license fee and the revenues collected; require the establishment of a board as part of the interlocal agreement.
Index Headings	Economic Development - Regional industrial taxing districts, establishment Interlocal Cooperation - Regional industrial taxing districts, establishment Local Government - Regional industrial taxing districts, establishment Piggybacked Bills - HB 707 to HB 775 Property - Regional industrial taxing districts, economic development projects Taxation - Occupational license fees, special ad valorem taxes, regional industrial taxing districts Taxation, Property - Regional industrial taxing districts, establishment Cities - Regional industrial taxing districts, establishment Contracts - Regional industrial taxing districts, interlocal agreement, requirements Counties - Occupational license fees, special ad valorem taxes, regional industrial taxing districts

Amendment	Senate Floor Amendment 1
Sponsor	G. Williams
Summary	Retain original provisions; update fiscal years in which the reduction conditions are reviewed for an individual income tax rate decrease for taxable years beginning on or after January 1, 2027.
Index Headings	Taxation - Individual income tax rate Taxation, Income--Individual - Rate reduction conditions

Amendment	Senate Floor Amendment 2
Sponsor	G. Williams
Summary	Retain original provisions; update fiscal years for review of the reduction conditions; allow the individual income tax rate to be reduced in increments of one percent until the rate is reduced to zero percent beginning with taxable years on or after January 1, 2028.
Index Headings	Taxation - Individual income tax rate Taxation, Income--Individual - Tax rate reduction, increments of one percent