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AN ACT relating to a tax credit for home installations. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Eligible individual" means any individual living in the Commonwealth 6
who: 7
1. Is age sixty-five (65) or older; or 8
2. Has a physical or mental impairment that substantially limits one (1) 9
or more of a person's major life activities and has lasted or can be 10
expected to last for a continuous period of not less than twelve (12) 11
months; 12
(b) "Energy-efficient" denotes improvements made to a qualifying residence 13
that include building products, heating and cooling systems, or water 14
heaters affixed with the energy star label having been certified as meeting 15
energy efficiency criteria by the United States Environmental Protection 16
Agency and the United States Department of Energy; 17
(c) "Qualifying home installation" means any upgrade or modification made to 18
a qualifying residence that increases its habitability, efficiency, or 19
accessibility for the resident, including dependents, of the dwelling and 20
shall be products that are: 21
1. Energy-efficient; or 22
2. Composed of sustainable materials; 23
(d) "Qualifying residence" means the eligible individual's primary dwelling 24
located within the Commonwealth; and 25
(e) "Sustainable" means a product that has a low environmental impact and 26
contains recyclable and renewable components. 27 UNOFFICIAL COPY 23 RS BR 180
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(2) For taxable years beginning on or after January 1, 2024, but before January 1, 1
2028, an eligible individual who makes a qualifying home installation to his or 2
her qualifying residence may claim a credit that shall: 3
(a) Be equal to the actual cost of the qualifying home installation expenses 4
incurred; 5
(b) Not exceed seven thousand five hundred dollars ($7,500) for each taxable 6
year within which a qualified home installation is made; and 7
(c) Be refundable and claimed as a credit against the tax computed under KRS 8
141.020. 9
(3) (a) The purpose of this tax credit is to assist eligible individuals with the cost of 10
upgrading their homes making them more accessible or energy efficient. 11
(b) In order to evaluate the effectiveness of this tax credit the department shall 12
report the following information to the Interim Joint Committee on 13
Appropriations and Revenue on or before December 1, 2025, and on or 14
before each December 1 thereafter, as long as the credit is claimed on a tax 15
return: 16
1. The number of returns claiming the home installation tax credit; 17
2. The total amount of credit claimed for each taxable year; and 18
3. Based on ranges of adjusted gross income of no larger than five 19
thousand dollars ($5,000), the total amount of tax credit claimed and 20
the number of returns claiming a tax credit for each adjusted gross 21
income range for each taxable year. 22
Section 2. KRS 141.0205 is amended to read as follows: 23
If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax 24
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 25
the credits shall be determined as follows: 26
(1) The nonrefundable business incentive credits against the tax imposed by KRS 27 UNOFFICIAL COPY 23 RS BR 180
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141.020 shall be taken in the following order: 1
(a) The limited liability entity tax credit permitted by KRS 141.0401; 2
(b) The economic development credits computed under KRS 141.347, 141.381, 3
141.384, 141.3841, 141.400, 141.401, 141.403, 141.407, 141.415, 154.12-4
207, and 154.12-2088; 5
(c) The qualified farming operation credit permitted by KRS 141.412; 6
(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 7
(e) The health insurance credit permitted by KRS 141.062; 8
(f) The tax paid to other states credit permitted by KRS 141.070; 9
(g) The credit for hiring the unemployed permitted by KRS 141.065; 10
(h) The recycling or composting equipment credit permitted by KRS 141.390; 11
(i) The tax credit for cash contributions in investment funds permitted by KRS 12
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 13
154.20-258; 14
(j) The research facilities credit permitted by KRS 141.395; 15
(k) The employer High School Equivalency Diploma program incentive credit 16
permitted under KRS 151B.402; 17
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 18
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 19
(n) The clean coal incentive credit permitted by KRS 141.428; 20
(o) The ethanol credit permitted by KRS 141.4242; 21
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 22
(q) The energy efficiency credits permitted by KRS 141.436; 23
(r) The railroad maintenance and improvement credit permitted by KRS 141.385; 24
(s) The Endow Kentucky credit permitted by KRS 141.438; 25
(t) The New Markets Development Program credit permitted by KRS 141.434; 26
(u) The distilled spirits credit permitted by KRS 141.389; 27 UNOFFICIAL COPY 23 RS BR 180
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(v) The angel investor credit permitted by KRS 141.396; 1
(w) The film industry credit permitted by KRS 141.383 for applications approved 2
on or after April 27, 2018, but before January 1, 2022; 3
(x) The inventory credit permitted by KRS 141.408; and 4
(y) The renewable chemical production credit permitted by KRS 141.4231. 5
(2) After the application of the nonrefundable credits in subsection (1) of this section, 6
the nonrefundable personal tax credits against the tax imposed by KRS 141.020 7
shall be taken in the following order: 8
(a) The individual credits permitted by KRS 141.020(3); 9
(b) The credit permitted by KRS 141.066; 10
(c) The tuition credit permitted by KRS 141.069; 11
(d) The household and dependent care credit permitted by KRS 141.067; 12
(e) The income gap credit permitted by KRS 141.066; and 13
(f) The Education Opportunity Account Program tax credit permitted by KRS 14
141.522. 15
(3) After the application of the nonrefundable credits provided for in subsection (2) of 16
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 17
taken in the following order: 18
(a) The individual withholding tax credit permitted by KRS 141.350; 19
(b) The individual estimated tax payment credit permitted by KRS 141.305; 20
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 21
171.397(1)(b); 22
(d) The film industry tax credit permitted by KRS 141.383 for applications 23
approved prior to April 27, 2018, or on or after January 1, 2022; 24
(e) The development area tax credit permitted by KRS 141.398;[ and] 25
(f) The decontamination tax credit permitted by KRS 141.419; and 26
(g) The home installation tax credit permitted by Section 1 of this Act. 27 UNOFFICIAL COPY 23 RS BR 180
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(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 1
tax imposed by KRS 141.040. 2
(5) The following nonrefundable credits shall be applied against the sum of the tax 3
imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 4
of this section, and the tax imposed by KRS 141.0401 in the following order: 5
(a) The economic development credits computed under KRS 141.347, 141.381, 6
141.384, 141.3841, 141.400, 141.401, 141.403, 141.407, 141.415, 154.12-7
207, and 154.12-2088; 8
(b) The qualified farming operation credit permitted by KRS 141.412; 9
(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 10
(d) The health insurance credit permitted by KRS 141.062; 11
(e) The unemployment credit permitted by KRS 141.065; 12
(f) The recycling or composting equipment credit permitted by KRS 141.390; 13
(g) The coal conversion credit permitted by KRS 141.041; 14
(h) The enterprise zone credit permitted by KRS 154.45-090, for taxable periods 15
ending prior to January 1, 2008; 16
(i) The tax credit for cash contributions to investment funds permitted by KRS 17
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 18
154.20-258; 19
(j) The research facilities credit permitted by KRS 141.395; 20
(k) The employer High School Equivalency Diploma program incentive credit 21
permitted by KRS 151B.402; 22
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 23
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 24
(n) The clean coal incentive credit permitted by KRS 141.428; 25
(o) The ethanol credit permitted by KRS 141.4242; 26
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 27 UNOFFICIAL COPY 23 RS BR 180
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(q) The energy efficiency credits permitted by KRS 141.436; 1
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 2
permitted by KRS 141.437; 3
(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 4
(t) The railroad expansion credit permitted by KRS 141.386; 5
(u) The Endow Kentucky credit permitted by KRS 141.438; 6
(v) The New Markets Development Program credit permitted by KRS 141.434; 7
(w) The distilled spirits credit permitted by KRS 141.389; 8
(x) The film industry credit permitted by KRS 141.383 for applications approved 9
on or after April 27, 2018, but before January 1, 2022; 10
(y) The inventory credit permitted by KRS 141.408; 11
(z) The renewable chemical production tax credit permitted by KRS 141.4231; 12
and 13
(aa) The Education Opportunity Account Program tax credit permitted by KRS 14
141.522. 15
(6) After the application of the nonrefundable credits in subsection (5) of this section, 16
the refundable credits shall be taken in the following order: 17
(a) The corporation estimated tax payment credit permitted by KRS 141.044; 18
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 19
171.397(1)(b); 20
(c) The film industry tax credit permitted by KRS 141.383 for applications 21
approved prior to April 27, 2018, or on or after January 1, 2022; and 22
(d) The decontamination tax credit permitted by KRS 141.419. 23
Section 3. KRS 131.190 is amended to read as follows: 24
(1) No present or former commissioner or employee of the department, present or 25
former member of a county board of assessment appeals, present or former property 26
valuation administrator or employee, present or former secretary or employee of the 27 UNOFFICIAL COPY 23 RS BR 180
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Finance and Administration Cabinet, former secretary or employee of the Revenue 1
Cabinet, or any other person, shall intentionally and without authorization inspect 2
or divulge any information acquired by him or her of the affairs of any person, or 3
information regarding the tax schedules, returns, or reports required to be filed with 4
the department or other proper officer, or any information produced by a hearing or 5
investigation, insofar as the information may have to do with the affairs of the 6
person's business. 7
(2) The prohibition established by subsection (1) of this section shall not extend to: 8
(a) Information required in prosecutions for making false reports or returns of 9
property for taxation, or any other infraction of the tax laws; 10
(b) Any matter properly entered upon any assessment record, or in any way made 11
a matter of public record; 12
(c) Furnishing any taxpayer or his or her properly authorized agent with 13
information respecting his or her own return; 14
(d) Testimony provided by the commissioner or any employee of the department 15
in any court, or the introduction as evidence of returns or reports filed with the 16
department, in an action for violation of state or federal tax laws or in any 17
action challenging state or federal tax laws; 18
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 19
energy resources assessed under KRS 132.820, or owners of surface land 20
under which the unmined minerals lie, factual information about the owner's 21
property derived from third-party returns filed for that owner's property, under 22
the provisions of KRS 132.820, that is used to determine the owner's 23
assessment. This information shall be provided to the owner on a confidential 24
basis, and the owner shall be subject to the penalties provided in KRS 25
131.990(2). The third-party filer shall be given prior notice of any disclosure 26
of information to the owner that was provided by the third-party filer; 27 UNOFFICIAL COPY 23 RS BR 180
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(f) Providing to a third-party purchaser pursuant to an order entered in a 1
foreclosure action filed in a court of competent jurisdiction, factual 2
information related to the owner or lessee of coal, oil, gas reserves, or any 3
other mineral resources assessed under KRS 132.820. The department may 4
promulgate an administrative regulation establishing a fee schedule for the 5
provision of the information described in this paragraph. Any fee imposed 6
shall not exceed the greater of the actual cost of providing the information or 7
ten dollars ($10); 8
(g) Providing information to a licensing agency, the Transportation Cabinet, or 9
the Kentucky Supreme Court under KRS 131.1817; 10
(h) Statistics of gasoline and special fuels gallonage reported to the department 11
under KRS 138.210 to 138.448; 12
(i) Providing any utility gross receipts license tax return information that is 13
necessary to administer the provisions of KRS 160.613 to 160.617 to 14
applicable school districts on a confidential basis; 15
(j) Providing documents, data, or other information to a third party pursuant to an 16
order issued by a court of competent jurisdiction; or 17
(k) Providing information to the Legislative Research Commission under: 18
1. KRS 139.519 for purposes of the sales and use tax refund on building 19
materials used for disaster recovery; 20
2. KRS 141.436 for purposes of the energy efficiency products credits; 21
3. KRS 141.437 for purposes of the ENERGY STAR home and the 22
ENERGY STAR manufactured home credits; 23
4. KRS 141.383 for purposes of the film industry incentives; 24
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 25
tax credits and the job assessment fees; 26
6. KRS 141.068 for purposes of the Kentucky investment fund; 27 UNOFFICIAL COPY 23 RS BR 180
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7. KRS 141.396 for purposes of the angel investor tax credit; 1
8. KRS 141.389 for purposes of the distilled spirits credit; 2
9. KRS 141.408 for purposes of the inventory credit; 3
10. KRS 141.390 for purposes of the recycling and composting credit; 4
11. KRS 141.3841 for purposes of the selling farmer tax credit; 5
12. KRS 141.4231 for purposes of the renewable chemical production tax 6
credit; 7
13. KRS 141.524 for purposes of the Education Opportunity Account 8
Program tax credit; 9
14. KRS 141.398 for purposes of the development area tax credit; 10
15. KRS 139.516 for the purposes of the sales and use tax exemption on the 11
commercial mining of cryptocurrency;[ and] 12
16. KRS 141.419 for purposes of the decontamination tax credit; and 13
17. Section 1 of this Act for purposes of the home installation tax credit. 14
(3) The commissioner shall make available any information for official use only and on 15
a confidential basis to the proper officer, agency, board or commission of this state, 16
any Kentucky county, any Kentucky city, any other state, or the federal 17
government, under reciprocal agreements whereby the department shall receive 18
similar or useful information in return. 19
(4) Access to and inspection of information received from the Internal Revenue Service 20
is for department use only, and is restricted to tax administration purposes. 21
Information received from the Internal Revenue Service shall not be made available 22
to any other agency of state government, or any county, city, or other state, and 23
shall not be inspected intentionally and without authorization by any present 24
secretary or employee of the Finance and Administration Cabinet, commissioner or 25
employee of the department, or any other person. 26
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 27 UNOFFICIAL COPY 23 RS BR 180
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requirements of KRS Chapter 137 and statistics of natural gas production as 1
reported to the department under the natural resources severance tax requirements 2
of KRS Chapter 143A may be made public by the department by release to the 3
Energy and Environment Cabinet, Department for Natural Resources. 4
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 5
submissions for the 1989 tax year, the department may make public or divulge only 6
those portions of mine maps submitted by taxpayers to the department pursuant to 7
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-8
out parcel areas. These electronic maps shall not be relied upon to determine actual 9
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 10
required under KRS Chapters 350 and 352 shall not be construed to constitute land 11
surveying or boundary surveys as defined by KRS 322.010 and any administrative 12
regulations promulgated thereto. 13