Kentucky
General Assembly

03/03/26	introduced in House to Committee on Committees (H)
03/04/26	taken from Committee on Committees (H) 1st reading returned to Committee on Committees (H) to Appropriations & Revenue (H)
03/05/26	taken from Appropriations & Revenue (H) 2nd reading returned to Appropriations & Revenue (H)
03/10/26	reported favorably, to Rules with Committee Substitute (1) taken from Rules placed in the Orders of the Day 3rd reading, passed 93-0 with Committee Substitute (1)
03/11/26	received in Senate to Committee on Committees (S)
03/16/26	to Economic Development, Tourism, & Labor (S)
03/26/26	reported favorably, 1st reading, to Consent Calendar with Committee Substitute (1) and Committee Amendment (1-title)
03/27/26	2nd reading, to Rules as a consent bill posted for passage in the Consent Orders of the Day for Tuesday, March 31 2026
03/31/26	3rd reading, passed 36-2 with Committee Substitute (1) and Committee Amendment (1-title) received in House to Rules (H) posted for passage for concurrence in Senate Committee Substitute (1) and Committee Amendment (1-title) House refused to concur in Senate Committee Substitute (1) and Committee Amendment (1-title)
04/01/26	received in Senate to Rules (S) posted for passage for receding from Senate Committee Substitute (1) and Committee Amendment (1-title) Senate refused to recede from Committee Substitute (1) and Committee Amendment (1-title) Conference Committee appointed in House and Senate
04/15/26	Conference Committee report filed in House and Senate Conference Committee report adopted in House and Senate Free Conference Committee appointed in House and Senate Free Conference Committee report filed in House and Senate Free Conference Committee report adopted in Senate posted for passage for consideration of Free Conference Committee Report passed 37-0 received in House to Rules (H) posted for passage for consideration of Free Conference Committee Report taken from Rules Free Conference Committee report adopted in House passed 70-22 enrolled, signed by Speaker of the House enrolled, signed by President of the Senate delivered to Governor

Amendment	House Committee Substitute 1
Fiscal Impact Statement	Fiscal Note to House Committee Substitute 1
Summary	Retain original provisions, except remove the rural building and job creation revolving fund and related uses of the fund for the New Markets Tax Credits Program; create a new section of KRS Chapter 141 to define "approved company," "authority," and "credit"; create a refundable economic development credit against taxes imposed under KRS 141.020 or 141.040 and 141.0401; set requirements for the Department of Revenue to administer the credit; require the Department of Revenue to report to the Kentucky Economic Development Finance Authority on the credit; prohibit the information reported to be considered confidential; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit; amend KRS 154.12-204 to include the cost of equipment in approved costs; define "heritage county"; increase the minimum base hourly wage amount for the Bluegrass State Skills Program; amend KRS 154.12-207 to increase the skills training investment credit cap; create a separate skills training investment credit cap for trainees located in a heritage county; increase the timeframe that an approved company has to complete training programs under a Bluegrass State Skills Program; amend KRS 154.21-015 to define "heritage county"; amend KRS 154.21-017 to set a higher grant funding cap for approved projects located in a heritage county under the Kentucky Product Development Initiative Program; amend KRS 154.21-035 to include propane in the list of required utilities for a property that an eligible project occupies or is proposed to occupy under the Kentucky Product Development Initiative Program; amend KRS 154.25-010 to define "heritage county"; set a lower threshold for required jobs and eligible costs for projects located in a heritage county under the Kentucky Jobs Retention Act Program; amend KRS 154.25-030 to allow the extension of a tax incentive agreement for a jobs retention project when an approved company demonstrates that less than 75% of the incentives awarded will be claimed during the term of the agreement; allow a refundable credit of up to 1.5% of the wages paid to full-time employees maintained at a jobs retention project located in a heritage county; set a cap for the total refundable credits awarded to all approved companies under the Kentucky Jobs Retention Act Program and the Kentucky Business Investment Program at $2,000,000 per taxable year; amend KRS 154.25-040 to require reporting by the Department of Revenue and the Cabinet for Economic Development on the refundable credits claimed under the Kentucky Jobs Retention Act Program; amend KRS 154.32-010 to include research and development as an eligible company for the Kentucky Business Investment Program; expand the types of start-up costs and lease agreements allowed for economic development projects under the Kentucky Business Investment Program; define "heritage county"; increase the wage target thresholds and set a separate threshold for jobs located in a heritage county; amend KRS 154.32-020 to increase the required minimum pay for jobs created as a result of the economic development project under the Kentucky Business Investment Program; amend KRS 154.32-030 to allow the recovery of eligible costs incurred 90 days prior to receipt of preliminary approval for an economic development project under the Kentucky Business Investment Program; amend KRS 154.32-040 to allow a one-time extension for approved companies that received preliminary approval of an economic development project prior to January 1, 2023 under the Kentucky Business Investment Program; set requirements for the extension; amend KRS 154.32-070 to allow a refundable credit of up to 1.5% of the wages paid to full-time employees maintained at an economic development project located in a heritage county under the Kentucky Business Investment Program; set a cap for the total refundable credits awarded to all approved companies under the Kentucky Jobs Retention Act Program and the Kentucky Business Investment Program at $2,000,000 per taxable year; amend KRS 154.32-100 to require reporting by the Department of Revenue and the Cabient for Economic Development on the refundable credits claimed under the Kentucky Business Investment Program; amend various other sections to conform; repeal KRS 154.32-050, relating to certifcation of enhanced incentive counties; EMERGENCY.
Index Headings	Counties - Heritage county designation, county ranking Economic Development - Jobs retention project, eligible costs incurred, heritage county location Economic Development - Kentucky Business Investment Program, expansion of eligible companies and wage target thresholds Economic Development - Kentucky Product Development Initiative, maximum funding available, heritage county designation Economic Development - Refundable economic development credit, income tax Effective Dates, Emergency - Economic development, heritage counties Reports Mandated - Cabinet for Economic Development, refundable economic development credit Reports Mandated - Department of Revenue, refundable economic development credit Taxation - Income tax, refundable economic development credit Taxation - Income tax, skills training investment credit, modifications Taxation, Income--Corporate - Economic development credit, refundable Taxation, Income--Individual - Refundable economic development credit, creation Wages And Hours - Wage requirements, certain economic development projects Workforce - Minimum base hourly wage requirements, economic development project purposes Workforce - Minimum number of full-time employees, heritage county designation, economic development incentives Workforce - Skills training investment credit, increase in credit amount per trainee

Amendment	Senate Committee Substitute 1
Summary	Delete original provisions; create a new section of KRS Chapter 141 to create a refundable economic development credit for the Kentucky Product Development Initiative and the Kentucky Business Investment Program subject to the approval of the Kentucky Economic Development Finance Authority; amend KRS 141.0205 to add the refundable economic development credit to the priority of tax credits taken by a taxpayer; create a new section of Subchapter 12 of KRS Chapter 154 to create the heritage community revolving fund to provide financial assistance to support New Markets Development Program Tax Credit applications to be administered by the Cabinet for Economic Development and subject to the approval of the Kentucky Economic Development Finance Authority; amend KRS 154.12-204 to add the definition of "heritage county" and amend the definition of "minimum base hourly wage" from 150% to 200% for a company in a heritage county and to 300% for a company in any other county; amend KRS 154.12-207 to change the Bluegrass State Skills Corporation's occupational upgrade training or skills upgrade training credit amount not to exceed $5,000 per trainee for an approved company in a heritage county and $4,000 per trainee for an approved company in any other county and to change the 1 year to 3 year limit on completing training from the date of approval by the Bluegrass State Skills Corporation; amend KRS 154.21-015 to add the definition of "heritage county"; amend KRS 154.21-017 to increase maximum funding available to $2,500,000 for an approved project in a heritage county under the Kentucky Product Development Initiative; amend KRS 154.21-035 to include propane in the assessment of adequate utilities; amend KRS 154.25-010 to change definition of "eligible company" to include a minimum of 250 full-time persons for a project located in a heritage county and add the definition of "heritage county" under the Kentucky Jobs Retention Act; amend KRS 154.25-030 to allow an extension of the 10 year time period if less than 75% of the incentives will be claimed under the term of the agreement and to provide a refundable tax credit based on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.25-040 to add new reporting requirements for the Department of Revenue to the Cabinet for Economic Development and for the cabinet to annually report to the Governor and the Legislative Research Commission on the economic development wage credits received; amend KRS 154.25-050 to conform; amend KRS 154.32-010 to add "heritage county", amend "start-up costs" to include certain software; and "wage target" from 125% to 200% for a company in a heritage county and from 150% to 300% for a company in any other county under the Kentucky Business Incentives program; include research and development companies or out of state companies involved in economic development projects near Tier IV counties, with another state that has reciprocal provisions with Kentucky, with a minimum 250 full-time jobs, and meets other criteria as the Kentucky Economic Development Finance Authority may require; amend KRS 154.32-020 to increase the percentage of federal minimum wage paid to 90% of new full-time employees from 125% to 200% in heritage counties and from 150% to 300% in other counties and to provide a refundable economic development credit based on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.32-030 to allow recovery of eligible costs incurred 90 days prior to receiving preliminary approval; amend KRS 154.32-040 to allow a one-time extension for projects approved prior to January 1, 2023, if approved company has received less than 75% of the incentives under the agreement but no more than maximum amount of incentives under the agreement; amend KRS 154.32-050 to create a 4 tier ranking system for all Kentucky counties based on a 5 year average of a county's unemployment rate and population ranking under the Kentucky Product Development Initiative; amend KRS 154.32-070 to provide a refundable economic development creditbased on a tiering system ranking all of Kentucky's counties into 4 tiers; amend KRS 154.32-100 to add new reporting requirements for the Department of Revenue to the Cabinet for Economic Development and for the cabinet to annually report to the Governor and the Legislative Research Commission on the refundable economic development credits received; amend KRS 154.12-100 to include regional airports that serve the Commonwealth; amend KRS 131.190, 141.383, 148.851, 148.853, 154.20-230, 154.20-236, 154.32-090, 154.34-010, 154.61-010, 154.61-020, and 164.6021 to conform; encourage the Cabinet for Economic Development to conduct an impact and feasibility study and, if completed to be submit it to the Interim Joint Committee on Economic Development and Workforce Investment by December 1, 2028; EMERGENCY.
Index Headings	Economic Development - Kentucky economic development incentive programs, tiered county system, establishment Effective Dates, Emergency - Kentucky economic development incentive programs, tiered county system, establishment Funds - Heritage community revolving fund, Kentucky Economic Development Finance Authority Local Government - Kentucky economic development incentive programs, tiered county system, establishment Small Business - Kentucky economic development incentive programs, tiered county system, establishment State Agencies - Cabinet for Economic Development, Kentucky economic incentive programs, tiered county system Taxation - Kentucky economic development refundable credit program, tiered county system, establishment Taxation, Income--Corporate - Kentucky economic development refundable credit program, tiered county system, establishment

Amendment	Senate Committee Amendment 1
Sponsor	P. Wheeler
Summary	Make title amendment.
Index Headings	Title Amendments - HB 869/GA

Amendment	Conference Committee Report 1
Summary	Cannot agree.
Index Headings	Conference Committee Reports - HB 869 GA

Amendment	Free Conference Committee Report 1
Summary	Create a new section of KRS 141 to allow a refundable credit for economic development projects under the Kentucky Business Investment program of up to 2.25% of the wages paid to full-time employees of a project located in a heritage county or up to 1.25%of the wages paid to full-time employees of a project located in any other county within this state; amend KRS 154.12-207 to increase the maximum amount of skills training investment credit that may be allowed to $4,500 per trainee for approved companies in a heritage county or $3,500 per trainee for locations in any other county; remove the provisions that allow a refundable credit for economic development projects under the Kentucky Product Development Initiative for wages paid to full-time employees; remove the provisions that limit eligible costs to be recovered at $20,000 for each new full-time job created; increase the wage target to 200% of the federal minimum wage in heritage counites or 300% of the federal minimum wage for certain economic development projects; create a new section of subchapter 20 of KRS chapter 154 to allow a refundable certified mixed-use rehabilitation credit under approval by the Kentucky Economic Development Finance Authority; create a process by which an eligible taxpayer may apply for the credit; require KEDFA to approve the credit and report to the Department of Revenue; provide that the certified mixed-use credit be available against income taxes or insurance premium taxes that are imposed; allow the credit to be transferrable; create a new section of KRS Chapter 141 to provide for the administration and reporting of the credit by the department; create new sections of KRS Chapter 136 to provide for the administration and ordering of the credit as it relates to insurance premiums tax; amend KRS 148.853 to allow an approved company to enter into a new tourism development agreement for an entertainment destination center project, if the approved company has an expired agreement and has not been a party to an agreement in the last 5 years; require 100% of the incentives received under the new agreement to be reinvested into the project; require reporting of the incentives to the Kentucky Tourism Development Finance Authority; amend KRS 65.490 to define "existing development area," and "new development area"; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend the definition of "pilot program" to include a new development area that exists for 30 years; amend KRS 154.30-050 to increase the capital investment requirement for a state participation project to $500,000,000 from $200,000,000; require the project be owned by a Section 501(c)(3) organization; amend KRS 424.110 and 61.805 to define "time" in order to require that time be stated in both Eastern Standard Time and Central Standard Time in advertisements and notices made by governmental agencies; amend KRS 140.070 and 140.080 to include a nephew, niece, or nephew or niece of the half-blood as a Class A beneficiary; delete language that only applies to deaths occurring prior to July 1, 1995, or between July 1, 1995, and June 30, 1998; apply to estates of decedents who die on or after January 1, 2026; create a new section of KRS Chapter 141 to establish a nonrefundable income tax credit for alternative jet fuel producers; require the Department of Revenue, in conjunction with the Department of Agriculture and the Energy and Environment Cabinet, to promulgate administrative regulations; require the department to report on the credit to the Legislative Research Commission; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit; create a new section of KRS Chapter 139 to define terms; provide a rebate of 75% of the Kentucky sales tax generated by the sale of alternative jet fuel and agriculturally based alternative jet fuel ata commercial airport located in Kentucky; require that the rebate be used for reinvestment back into airport facilities and operations; amend KRS 67C.147 to disallow payments and reimbursements for a fire district operating under KRS Chapter 75 that received a payment or reimbursement from a consolidated local government for an emergency response made prior to July 1, 2025 into an urban service tax district; amend KRS 367.990 to establish what constitutes a separate violation of KRS 367.170; direct the Kentucky Film Leadership Council to perform a study on the needs of Kentucky's musicians and music venues; amend 2026 RS HB 757/VO, Sections 7 and 8 to make a technical correction; amend 2026 RS HB 757/VO, Section 118, to amend the definition of "new development area" to be independent of an existing development area; amend 2026 RS SB 185/EN, Section 1, to allow organizations that have entered into a public private lease agreement with Kentucky State University to be eligible to transact business or enter into a contract with the university or any other agency or instrumentality of the Commonwealth or subdivision thereof; amend 2026 RS HB 757/VO, Section 5, to extend the sunset the Signature Projects Program to December 31, 2028; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend HB 707/VO, Section 107, to amend the definition of "modifier" to allow a reduction of 3.3% in calendar year 2026 and an additional 1.1% reduction in each calendar year after 2026 to 2048; amend 26 RS HB 904/VO, Section 22, to require that certain licensees not contract with entities offering sports event contracts or sports prediction markets, and allow the corporation to take administrative action if this section is violated; amend 2026 RS HB 677/EN, Section 25, to remove proposed facilities used in connection with the storage of electricity from solar or wind power from the construction certificate exemption and application requirements; amend 2026 RS HB 677/EN, Section 26, to amend the decommission plan requirements; direct the Cabinet for Economic Development to report on tax credits and incentives for hyperscale data centers and data centers in Kentucky and its surrounding states and provide the report to the Legislative Research Commission by August 1, 2027; amend 2026 RS HB 757/VO, section 97 to make technical correction; amend 2026 RS HB 757/VO sections 136, 139, and 140 to make technical correction to effective dates; RETROACTIVE, in part, July 1, 2025; EMERGENCY, EFFECTIVE, in part, August 1, 2026, January 1, 2027, July 1, 2027.
Index Headings	Administrative Regulations And Proceedings - Department of Revenue, airports, sales tax rebate Administrative Regulations And Proceedings - Department of Revenue, alternative jet fuel producers, tax credit Advertising - Advertisements, Eastern and Central Standard Times, reporting requirement Aeronautics And Aviation - Airport, alternative jet fuel sales, sales tax rebate Aeronautics And Aviation - Alternative jet fuel, income tax credit Children And Minors - Inheritance tax, nephew and niece, Class A beneficiaries Consolidated Local Governments - Emergency medical response payments or reimbursements Deaths - Inheritance tax, nephew and niece, Class A beneficiaries Driver Licensing - Operator's license skills testing pilot program, extension Economic Development - Certified mixed-use rehabiltaiton credit, approval Economic Development - Hyperscale data centers, tax credits and incentives, report Elections And Voting - Advertisements, Eastern and Central Standard Times, reporting requirement Firefighters And Fire Departments - Emergency medical response payments or reimbursements Fuel - Alternative jet fuel, income tax credit Gaming And Wagering - Wagering, regulation Insurance - Insurance premiums tax, certified mixed-use rehabilitation credit Police, State - Operator's license skills testing pilot program, extension Public Utilities - Merchant electric generating facilities Reports Mandated - Department of Revenue, alternative jet fuel producers, tax credit State Agencies - Advertisements, Eastern and Central Standard Times, reporting requirement State Agencies - Department of Revenue, alternative jet fuel producers, tax credit Studies Directed - Hyperscale data centers, tax credits and incentives, report Sunset Legislation - Operator's license skills testing pilot program, extension Sunset Legislation - TIF, Signature Projects Program, extension Taxation - Alternative jet fuel, income tax credit Taxation - Certified mixed-use rehabilitation credit, income tax Taxation - Certified mixed-use rehabilitation credit, insurance premiums tax Taxation - Hyperscale data centers, tax credits and incentives, report Taxation - Income tax, modified new revenues, calculation Taxation - Inheritance tax, nephew and niece, Class A beneficiaries Taxation - Motor fuels, gasoline, definition, technical correction Taxation - Professional golf sporting event, definition Taxation - Sales tax, airports, alternative jet fuel, rebate Taxation - TIF, Signature Projects Program, sunset extension and qualification requirements Taxation, Income--Corporate - Alternative jet fuel producers, tax credit Taxation, Income--Corporate - Certified mixed-use rehabilitation credit Taxation, Income--Corporate - Modified new revenues, calculation Taxation, Income--Individual - Alternative jet fuel producers, tax credit Taxation, Income--Individual - Certified mixed-use rehabilitation credit Taxation, Income--Individual - Modified new revenues, calculation Taxation, Inheritance And Estate - Class A beneficiaries, nephew and niece Taxation, Sales And Use - Airports, alternative jet fuel, rebate Taxation, Sales And Use - Professional golf sporting event, definition Technical Corrections - Effective dates Universities And Colleges - Kentucky State University, organizations with public private lease agreement, authority Urban Renewal - Qualified abandoned building, urban core area, tax credit