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) taken from Appropriations & Revenue (S) returned to Appropriations & Revenue (S) 1st reading
03/12/25	floor amendments (1) and (2) filed
03/13/25	floor amendment (3) filed taken from Appropriations & Revenue (S) 2nd reading returned to Appropriations & Revenue (S)
03/14/25	reported favorably, to Rules with Committee Substitute (1) posted for passage in the Regular Orders of the Day for Friday, March 14, 2025 floor amendment (4) filed to Committee Substitute 3rd reading Floor Amendments (1), (2) and (3) withdrawn passed 32-5 with Committee Substitute (1) and Floor Amendment (4) received in House to Rules (H) posted for passage for concurrence in Senate Committee Substitute (1) and Floor Amendment (4) House concurred in Senate Committee Substitute (1) and Floor Amendment (4) passed 61-23 enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor
03/26/25	filed without Governor's signature with the Secretary of State
03/27/25	became law without Governor's Signature (Acts Ch. 98)

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	Fiscal Note - Department of Revenue, sales tax refund, entertainment events 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 Committee Substitute 1
Summary	Retain original provisions; amend KRS 154.60-040 to define "actively engaged farmer," "beginning farmer," "buyer," "department," "seller," and "significant contribution"; allow expanded tax credit caps for each year of the seller of $25,000 if the agricultural assets are sold to an actively engaged farmer with a lifetime cap of $100,000 or $50,000 if the agricultural assets are sold to a beginning farmer with a lifetime cap of $200,000; amend KRS 141.010 to update the Internal Revenue Code reference date; amend various sections of KRS Chapter 243 to require a license and fee to be paid by a cannabis-infused beverage manufacturer, distributor, direct shipper, and retailer; amend KRS 154.20-220 to allow incentives for certain data centers locating in areas with certain populations; amend 2025 RS HB 566/EN, Section 3, to require the first audit conducted to cover fiscal year 2024-2025; prohibit the Kentucky Horse Racing and Gaming Corporation from authorizing certain locations for play of electronic charity game tickets; allow the Kentucky Horse Racing and Gaming Corporation to promulgate administration regulations in contemplation of statutes granting authority to the corporation.
Index Headings	Economic Development - Selling farmer tax credit Gambling - Kentucky Horse Racing and Gaming Corporation, audit, administrative regulations Licensing - Cannabis-infused beverages, distributors, manufacturers, retailers State Agencies - Cabinet for Economic Development, data center incentives Taxation - Internal Revenue Code, reference date Taxation, Income--Corporate - Internal Revenue Code, reference date Taxation, Income--Corporate - Selling farmer tax credit Taxation, Income--Individual - Internal Revenue Code, reference date Taxation, Income--Individual - Selling farmer tax credit Administrative Regulations and Proceedings - Kentucky Horse Racing and Gaming Corporation

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

Amendment	Senate Floor Amendment 3
Sponsor	L. Tichenor
Summary	Amend KRS 139.495 to exempt purchases and sales of tangible personal property, digital property, or services made by qualifying resident nonprofit educational, charitable, or religious institutions from state sales and use taxes.
Index Headings	Education, Finance - Nonprofit educational, charitable, and religious organizations, sales and use tax, exemption Religion - Nonprofit educational, charitable, and religious organizations, sales and use tax, exemption Sales - Nonprofit educational, charitable, and religious organizations, sales and use tax, exemption Taxation - Sales and use, nonprofit educational, charitable, and religious organizations, exemption Taxation, Sales and Use - Nonprofit educational, charitable, and religious organizations, exemption Charitable Organizations and Institutions - Nonprofit educational, charitable, and religious organizations, sales and use tax, exemption

Amendment	Senate Floor Amendment 4
Sponsor	C. McDaniel
Summary	Amends KRS 241.010 definition of "cannabis-infused beverage" to reflect the definition as passed in SB 202/EN.
Index Headings	Cannabis - "Cannabis-infused beverage" definition, correction Licensing - "Cannabis-infused beverage" definition, correction Taxation - "Cannabis-infused beverage" definition, correction