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AN ACT relating to an eligible caregiver tax credit. 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) "Activities of daily living" has the same meaning as in KRS 194A.700; 6
(b) "Dementia" means Alzheimer's disease and related dementia illnesses and 7
disorders; 8
(c) "Eligible caregiver" means an individual who incurs unreimbursed, eligible 9
expenses in providing in-home care for an eligible family member; 10
(d) "Eligible expense" means the amounts incurred by an eligible family 11
caregiver in providing care to an eligible family member living in a private 12
residence in this state and may include expenditures related to: 13
1. Hiring a home care aide; 14
2. Respite care; 15
3. Adult day care; 16
4. Personal care attendants; 17
5. Health care equipment; 18
6. Home modifications; 19
7. Technology; or 20
8. Lease of medical equipment; and 21
(e) "Eligible family member" means an individual who: 22
1. Is sixty-two (62) years of age or older; 23
2. Requires assistance with at least two (2) activities of daily living as 24
certified by a licensed health care provider; and 25
3. Is being cared for by a family member by blood or marriage. 26
(2) For taxable years beginning on or after January 1, 2026, but before January 1, 27 UNOFFICIAL COPY 25 RS BR 102
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2030, there shall be a nonrefundable credit allowed for eligible caregivers against 1
the tax imposed in KRS 141.020 with the ordering of the credit as provided in 2
Section 2 of this Act. 3
(3) (a) The credit shall be equal to fifty percent (50%) of the amount of eligible 4
expenses incurred during the taxable year and shall not exceed: 5
1. Three thousand dollars ($3,000) if the eligible family member: 6
a. Is a veteran; or 7
b. Has a diagnosis of dementia; or 8
2. Two thousand dollars ($2,000) for all other eligible family members. 9
(b) Eligible caregivers shall not be allowed the eligible caregiver credit if their 10
modified gross income exceeds one hundred thousand dollars ($100,000) 11
per taxable year. 12
(4) If an eligible family member is being cared for by multiple eligible caregivers, the 13
eligible caregivers shall not claim credits for the same eligible expenses. 14
(5) (a) The aggregate total of all eligible caregiver credits authorized per taxable 15
year shall not exceed one million five hundred thousand dollars 16
($1,500,000). 17
(b) If total credits claimed on all returns exceed the amount established in this 18
subsection, the department shall adjust the credit cap for the subsequent 19
taxable year by the amount of excess credit claimed in the proceeding 20
taxable year. 21
(c) If the department adjusts the available credit cap in any taxable year in 22
accordance with paragraph (b) of this subsection, the remaining balance of 23
the eligible caregiver credit available shall be made public on the 24
department's website. 25
(6) In order to verify the credit claimed, the department may require: 26
(a) Documentation of eligible expenses incurred during the taxable year; 27 UNOFFICIAL COPY 25 RS BR 102
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(b) Verification that the eligible family member meets the definition established 1
in this section; and 2
(c) The Social Security number of the eligible family member. 3
(7) The department may promulgate administrative regulations in accordance with 4
KRS Chapter 13A to administer this section. 5
(8) In order for the General Assembly to evaluate the effectiveness of this credit, the 6
department shall submit a report to the Legislative Research Commission for 7
referral to the Interim Joint Committee on Appropriations and Revenue on or 8
before November 1, 2027, and on or before each November 1 thereafter, as long 9
as the eligible caregiver credit is claimed. The report shall include: 10
(a) The location of the taxpayer, by county, as reflected on the return filed for 11
the taxable year; 12
(b) The amount of the credit claimed by the taxpayer for the taxable year; 13
(c) The total cumulative amount of all credits claimed for the taxable year; and 14
(d) Based on ranges of adjusted gross income of no larger than five thousand 15
dollars ($5,000) for the taxable year, the total amount of credits claimed and 16
the number of returns claiming a credit for each adjusted gross income 17
range. 18
(9) The information required to be reported under this section shall not be 19
considered confidential taxpayer information and shall not be subject to KRS 20
Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting 21
disclosure or reporting of information. 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 25 RS BR 102
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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, 141.403, 141.407, 141.415, 154.12-207, and 4
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 25 RS BR 102
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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; 4
(y) The renewable chemical production credit permitted by KRS 141.4231; and 5
(z) The qualified broadband investment[ tax] credit permitted by KRS 141.391; 6
(2) After the application of the nonrefundable credits in subsection (1) of this section, 7
the nonrefundable personal tax credits against the tax imposed by KRS 141.020 8
shall be taken in the following order: 9
(a) The individual credits permitted by KRS 141.020(3); 10
(b) The credit permitted by KRS 141.066; 11
(c) The tuition credit permitted by KRS 141.069; 12
(d) The household and dependent care credit permitted by KRS 141.067; 13
(e) The income gap credit permitted by KRS 141.066;[ and] 14
(f) The Education Opportunity Account Program[ tax] credit permitted by KRS 15
141.522; and 16
(g) The eligible caregiver credit permitted by Section 1 of this Act; 17
(3) After the application of the nonrefundable credits provided for in subsection (2) of 18
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 19
taken in the following order: 20
(a) The individual withholding tax credit permitted by KRS 141.350; 21
(b) The individual estimated tax payment credit permitted by KRS 141.305; 22
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 23
171.397(1)(b); 24
(d) The film industry[ tax] credit permitted by KRS 141.383 for applications 25
approved prior to April 27, 2018, or on or after January 1, 2022; 26
(e) The development area[ tax] credit permitted by KRS 141.398; 27 UNOFFICIAL COPY 25 RS BR 102
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(f) The decontamination[ tax] credit permitted by KRS 141.419; and 1
(g) The pass-through entity tax credit permitted by KRS 141.209; 2
(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 3
tax imposed by KRS 141.040; 4
(5) The following nonrefundable credits shall be applied against the sum of the tax 5
imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 6
of this section, and the tax imposed by KRS 141.0401 in the following order: 7
(a) The economic development credits computed under KRS 141.347, 141.381, 8
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and 9
154.12-2088; 10
(b) The qualified farming operation credit permitted by KRS 141.412; 11
(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 12
(d) The health insurance credit permitted by KRS 141.062; 13
(e) The unemployment credit permitted by KRS 141.065; 14
(f) The recycling or composting equipment credit permitted by KRS 141.390; 15
(g) The coal conversion credit permitted by KRS 141.041; 16
(h) The enterprise zone credit permitted by KRS 154.45-090, for taxable periods 17
ending prior to January 1, 2008; 18
(i) The[ tax] credit for cash contributions to investment funds permitted by KRS 19
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 20
154.20-258; 21
(j) The research facilities credit permitted by KRS 141.395; 22
(k) The employer High School Equivalency Diploma program incentive credit 23
permitted by KRS 151B.402; 24
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 25
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 26
(n) The clean coal incentive credit permitted by KRS 141.428; 27 UNOFFICIAL COPY 25 RS BR 102
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(o) The ethanol credit permitted by KRS 141.4242; 1
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 2
(q) The energy efficiency credits permitted by KRS 141.436; 3
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 4
permitted by KRS 141.437; 5
(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 6
(t) The railroad expansion credit permitted by KRS 141.386; 7
(u) The Endow Kentucky credit permitted by KRS 141.438; 8
(v) The New Markets Development Program credit permitted by KRS 141.434; 9
(w) The distilled spirits credit permitted by KRS 141.389; 10
(x) The film industry credit permitted by KRS 141.383 for applications approved 11
on or after April 27, 2018, but before January 1, 2022; 12
(y) The inventory credit permitted by KRS 141.408; 13
(z) The renewable chemical production[ tax] credit permitted by KRS 141.4231; 14
(aa) The Education Opportunity Account Program[ tax] credit permitted by KRS 15
141.522; and 16
(ab) The qualified broadband investment[ tax] credit permitted by KRS 141.391; 17
and 18
(6) After the application of the nonrefundable credits in subsection (5) of this section, 19
the refundable credits shall be taken in the following order: 20
(a) The corporation estimated tax payment credit permitted by KRS 141.044; 21
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 22
171.397(1)(b); 23
(c) The film industry[ tax] credit permitted by KRS 141.383 for applications 24
approved prior to April 27, 2018, or on or after January 1, 2022; 25
(d) The decontamination[ tax] credit permitted by KRS 141.419; and 26
(e) The pass-through entity tax credit permitted by KRS 141.209. 27 UNOFFICIAL COPY 25 RS BR 102
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Section 3. KRS 131.190 is amended to read as follows: 1
(1) No present or former commissioner or employee of the department, present or 2
former member of a county board of assessment appeals, present or former property 3
valuation administrator or employee, present or former secretary or employee of the 4
Finance and Administration Cabinet, former secretary or employee of the Revenue 5
Cabinet, or any other person, shall intentionally and without authorization inspect 6
or divulge any information acquired by him or her of the affairs of any person, or 7
information regarding the tax schedules, returns, or reports required to be filed with 8
the department or other proper officer, or any information produced by a hearing or 9
investigation, insofar as the information may have to do with the affairs of the 10
person's business. 11
(2) The prohibition established by subsection (1) of this section shall not extend to: 12
(a) Information required in prosecutions for making false reports or returns of 13
property for taxation, or any other infraction of the tax laws; 14
(b) Any matter properly entered upon any assessment record, or in any way made 15
a matter of public record; 16
(c) Furnishing any taxpayer or his or her properly authorized agent with 17
information respecting his or her own return; 18
(d) Testimony provided by the commissioner or any employee of the department 19
in any court, or the introduction as evidence of returns or reports filed with the 20
department, in an action for violation of state or federal tax laws or in any 21
action challenging state or federal tax laws; 22
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 23
energy resources assessed under KRS 132.820, or owners of surface land 24
under which the unmined minerals lie, factual information about the owner's 25
property derived from third-party returns filed for that owner's property, under 26
the provisions of KRS 132.820, that is used to determine the owner's 27 UNOFFICIAL COPY 25 RS BR 102
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assessment. This information shall be provided to the owner on a confidential 1
basis, and the owner shall be subject to the penalties provided in KRS 2
131.990(2). The third-party filer shall be given prior notice of any disclosure 3
of information to the owner that was provided by the third-party filer; 4
(f) Providing to a third-party purchaser pursuant to an order entered in a 5
foreclosure action filed in a court of competent jurisdiction, factual 6
information related to the owner or lessee of coal, oil, gas reserves, or any 7
other mineral resources assessed under KRS 132.820. The department may 8
promulgate an administrative regulation establishing a fee schedule for the 9
provision of the information described in this paragraph. Any fee imposed 10
shall not exceed the greater of the actual cost of providing the information or 11
ten dollars ($10); 12
(g) Providing information to a licensing agency, the Transportation Cabinet, or 13
the Kentucky Supreme Court under KRS 131.1817; 14
(h) Statistics of gasoline and special fuels gallonage reported to the department 15
under KRS 138.210 to 138.448; 16
(i) Providing any utility gross receipts license tax return information that is 17
necessary to administer the provisions of KRS 160.613 to 160.617 to 18
applicable school districts on a confidential basis; 19
(j) Providing documents, data, or other information to a third party pursuant to an 20
order issued by a court of competent jurisdiction; 21
(k) Publishing administrative writings on its official website in accordance with 22
KRS 131.020(1)(b); or 23
(l) Providing information to the Legislative Research Commission under: 24
1. KRS 139.519 for purposes of the sales and use tax refund on building 25
materials used for disaster recovery; 26
2. KRS 141.436 for purposes of the energy efficiency products credits; 27 UNOFFICIAL COPY 25 RS BR 102
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3. KRS 141.437 for purposes of the ENERGY STAR home and the 1
ENERGY STAR manufactured home credits; 2
4. KRS 141.383 for purposes of the film industry incentives; 3
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 4
credit[tax credits] and the job assessment fees; 5
6. KRS 141.068 for purposes of the Kentucky investment fund; 6
7. KRS 141.396 for purposes of the angel investor[ tax] credit; 7
8. KRS 141.389 for purposes of the distilled spirits credit; 8
9. KRS 141.408 for purposes of the inventory credit; 9
10. KRS 141.390 for purposes of the recycling and composting 10
credits[credit]; 11
11. KRS 141.3841 for purposes of the selling farmer[ tax] credit; 12
12. KRS 141.4231 for purposes of the renewable chemical production[ tax] 13
credit; 14
13. KRS 141.524 for purposes of the Education Opportunity Account 15
Program[ tax] credit; 16
14. KRS 141.398 for purposes of the development area tax credit; 17
15. KRS 139.516 for[ the] purposes of the sales and use tax exemptions 18
for[exemption on] the commercial mining of cryptocurrency; 19
16. KRS 141.419 for purposes of the decontamination[ tax] credit; 20
17. KRS 141.391 for purposes of the qualified broadband investment[ tax] 21
credit;[ and] 22
18. KRS 139.499 for purposes of the sales and use tax 23
exemptions[exemption] for a qualified data center project; and 24
19. Section 1 of this Act for purposes of the eligible caregiver tax credit. 25
(3) The commissioner shall make available any information for official use only and on 26
a confidential basis to the proper officer, agency, board or commission of this state, 27 UNOFFICIAL COPY 25 RS BR 102
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any Kentucky county, any Kentucky city, any other state, or the federal 1
government, under reciprocal agreements whereby the department shall receive 2
similar or useful information in return. 3
(4) Access to and inspection of information received from the Internal Revenue Service 4
is for department use only, and is restricted to tax administration purposes. 5
Information received from the Internal Revenue Service shall not be made available 6
to any other agency of state government, or any county, city, or other state, and 7
shall not be inspected intentionally and without authorization by any present 8
secretary or employee of the Finance and Administration Cabinet, commissioner or 9
employee of the department, or any other person. 10
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 11
requirements of KRS Chapter 137 and statistics of natural gas production as 12
reported to the department under the natural resources severance tax requirements 13
of KRS Chapter 143A may be made public by the department by release to the 14
Energy and Environment Cabinet, Department for Natural Resources. 15
(6) Notwithstanding any provision of law to the contrary, beginning with mine-map 16
submissions for the 1989 tax year, the department may make public or divulge only 17
those portions of mine maps submitted by taxpayers to the department pursuant to 18
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-19
out parcel areas. These electronic maps shall not be relied upon to determine actual 20
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 21
required under KRS Chapters 350 and 352 shall not be construed to constitute land 22
surveying or boundary surveys as defined by KRS 322.010 and any administrative 23
regulations promulgated thereto. 24