AN ACT relating to an accessible home income tax credit.

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AN ACT relating to an accessible home income 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) "Accessible home" means a newly constructed, not previously inhabited, 6
single-family residence located in the Commonwealth that is built i n 7
accordance with: 8
1. All applicable provisions of Kentucky building and residential 9
construction codes and standards adopted by the locality in which the 10
residence is built; 11
2. Consideration to universal design and visitability standards; and 12
3. The inclusion of: 13
a. At least one (1) main floor bedroom and accessible bathroom; 14
b. Hallways and passageways with a width of at least thirty -six (36) 15
inches; 16
c. Doors with a clear openin g width of at least thirty -two (32) 17
inches; 18
d. Accessible light switches, electrical outlets, and climate controls; 19
e. At least one (1) zero-step entrance; and 20
f. Lowered kitchen counters and sinks; and 21
(b) "Eligible taxpayer" means any individual or busin ess entity that constructs 22
one (1) or more accessible homes in this state for the taxable year. 23
(2) For taxable years beginning on or after January 1, 2027, but before January 1, 24
2031, there shall be allowed a nonrefundable, nontransferable tax credit agai nst 25
the tax imposed under KRS 141.020 or KRS 141.040 and 141.0401, with the 26
ordering of the credit as provided in Section 2 of this Act. 27
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(3) The tax credit shall: 1
(a) Be claimed for the taxable year in which the construction of the accessible 2
home is complete and ready for occupancy; 3
(b) Equal five percent (5%) of total construction costs incurred; and 4
(c) Not exceed five thousand dollars ($5,000) per accessible home constructed. 5
(4) The construction costs used in the computation of this tax credit shall not: 6
(a) Be used in association with any other tax incentive allowed under this 7
chapter; or 8
(b) Include the costs associated with land acquisition. 9
(5) (a) An eligible taxpayer claiming the accessible home credit shall submit 10
verification of the credit: 11
1. With their tax return; or 12
2. On a separate date and method as prescribed by the department. 13
(b) The required documentation may include: 14
1. Copies of the blueprint, floor plan, or other construction detail 15
statement to verify each accessible home meets the qualifications 16
established in subsection (1) of this section; 17
2. Certificate of occupancy; 18
3. Building permits; 19
4. Receipts or invoices for construction costs; and 20
5. Any other supporting documentation to assist in the verification of the 21
tax credit. 22
(6) (a) The purpose of this tax credit is to promote the construction of accessible 23
housing in the Commonwealth and to provide the ability for older adults to 24
remain safely in their homes as they age. 25
(b) In order for the General Assembly to evaluate the purpose and the 26
effectiveness of the accessible home credit, the department shall submit the 27
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following information to the Legislative Research Commission and the 1
Interim Jo int Committee on Appropriations and Revenue on or before 2
November 1, 2028, and on or before each November 1 thereafter as long as 3
the credit may be claimed on a return: 4
1. The location of the taxpayer, by county, as reflected on the return filed 5
for the taxable year; 6
2. The amount of accessible home credit claimed by the taxpayer, by 7
county, for the taxable year; 8
3. The number of accessible homes constructed by the taxpayer, by 9
county, for the taxable year; 10
4. The total cumulative amount of all accessible home credits claimed for 11
the taxable year; 12
5. The total cumulative amount of all accessible homes constructed by all 13
taxpayers for the taxable year; and 14
6. a. In the case of all taxpayers other than corporations, based on 15
ranges of adjusted gross income of no larger than five thousand 16
dollars ($5,000) for the taxable year, the total amount of 17
accessible home credit claimed and the total number of returns 18
claiming this tax credit for each income range. 19
b. In the case of all corporations, based on ranges of ne t income no 20
larger than fifty thousand dollars ($50,000) for the taxable year 21
the total amount of tax credit claimed and the number of returns 22
claiming a tax credit for each income range. 23
(c) The information required to be reported under this section shall not be 24
considered confidential taxpayer information and shall not be subject to 25
KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes 26
prohibiting disclosure or reporting of information. 27
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Section 2. KRS 141.0205 is amended to read as follows: 1
If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax 2
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 3
the credits shall be determined as follows: 4
(1) The nonrefundable business incentive credits against the tax imposed by KRS 5
141.020 shall be taken in the following order: 6
(a) The limited liability entity tax credit permitted by KRS 141.0401; 7
(b) The economic development credits computed under K RS 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
(c) The qualified farming operation credit permitted by KRS 141.412; 11
(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 12
(e) The health insurance credit permitted by KRS 141.062; 13
(f) The tax paid to other states credit permitted by KRS 141.070; 14
(g) The credit for hiring the unemployed permitted by KRS 141.065; 15
(h) The recycling or composting equipment credit permitted by KRS 141.390; 16
(i) The [tax ]credit for cash contributions in 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 Sch ool Equivalency Diploma program incentive credit 21
permitted under 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
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(q) The energy efficiency credits permitted by KRS 141.436; 1
(r) The railroad maintenance and improvement credit permitted by KRS 141.385; 2
(s) The Endow Kentucky credit permitted by KRS 141.438; 3
(t) The New Markets Development Program credit permitted by KRS 141.434; 4
(u) The distilled spirits credit permitted by KRS 141.389; 5
(v) The angel investor credit permitted by KRS 141.396; 6
(w) The film industry credit permitted by KRS 141.383 for applications approved 7
on or after April 27, 2018, but before January 1, 2022; 8
(x) The inventory credit permitted by KRS 141.408; 9
(y) The renewable chemical production credit permitted by KRS 141.4231;[ and] 10
(z) The qualified broadband investment [tax ]credit permitted by KRS 141.391; 11
and 12
(aa) The accessible home credit permitted by Section 1 of this Act; 13
(2) After the application of the nonrefundable credits in subsection (1) of this s ection, 14
the nonrefundable personal tax credits against the tax imposed by KRS 141.020 15
shall be taken in the following order: 16
(a) The individual credits permitted by KRS 141.020(3); 17
(b) The credit permitted by KRS 141.066; 18
(c) The tuition credit permitted by KRS 141.069; 19
(d) The household and dependent care credit permitted by KRS 141.067; 20
(e) The income gap credit permitted by KRS 141.066; and 21
(f) The Education Opportunity Account Program [tax ]credit permitted by KRS 22
141.522; 23
(3) After the application of t he nonrefundable credits provided for in subsection (2) of 24
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 25
taken in the following order: 26
(a) The individual withholding tax credit permitted by KRS 141.350; 27
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(b) The individual estimated tax payment credit permitted by KRS 141.305; 1
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 2
171.397(1)(b); 3
(d) The film industry [tax ] credit permitted by KRS 141.383 for applications 4
approved prior to April 27, 2018, or on or after January 1, 2022; 5
(e) The development area [tax ]credit permitted by KRS 141.398; 6
(f) The decontamination [tax ]credit permitted by KRS 141.419; and 7
(g) The pass-through entity tax credit permitted by KRS 141.209; 8
(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 9
tax imposed by KRS 141.040; 10
(5) The following nonrefundable credits shall be applied against the sum of the tax 11
imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 12
of this section, and the tax imposed by KRS 141.0401 in the following order: 13
(a) The economic development credits computed under KRS 141.347, 141.381, 14
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12 -207, and 15
154.12-2088; 16
(b) The qualified farming operation credit permitted by KRS 141.412; 17
(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 18
(d) The health insurance credit permitted by KRS 141.062; 19
(e) The unemployment credit permitted by KRS 141.065; 20
(f) The recycling or composting equipment credit permitted by KRS 141.390; 21
(g) The coal conversion credit permitted by KRS 141.041; 22
(h) The enterprise zone credit permitted by KRS 154.45 -090, for taxable periods 23
ending prior to January 1, 2008; 24
(i) The [tax ]credit for cash contributions to investment funds permitted by KRS 25
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 26
154.20-258; 27
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(j) The research facilities credit permitted by KRS 141.395; 1
(k) The employer High School Equivalency Dip loma program incentive credit 2
permitted by KRS 151B.402; 3
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 4
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 5
(n) The clean coal incentive credit permitted by KRS 141.428; 6
(o) The ethanol credit permitted by KRS 141.4242; 7
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 8
(q) The energy efficiency credits permitted by KRS 141.436; 9
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 10
permitted by KRS 141.437; 11
(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 12
(t) The railroad expansion credit permitted by KRS 141.386; 13
(u) The Endow Kentucky credit permitted by KRS 141.438; 14
(v) The New Markets Development Program credit permitted by KRS 141.434; 15
(w) The distilled spirits credit permitted by KRS 141.389; 16
(x) The film industry credit permitted by KRS 141.383 for applications a pproved 17
on or after April 27, 2018, but before January 1, 2022; 18
(y) The inventory credit permitted by KRS 141.408; 19
(z) The renewable chemical production [tax ]credit permitted by KRS 141.4231; 20
(aa) The Education Opportunity Account Program [tax ]credit permitted by KRS 21
141.522;[ and] 22
(ab) The qualified broadband investment [tax ]credit permitted by KRS 141.391; 23
and 24
(ac) The accessible home credit permitted by Section 1 of this Act; and 25
(6) After the application of the nonrefundable credits in subsection (5) of this section, 26
the refundable credits shall be taken in the following order: 27
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(a) The corporation estimated tax payment credit permitted by KRS 141.044; 1
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 2
171.397(1)(b); 3
(c) The film industry [tax ] credit permitted by KRS 141.383 for applications 4
approved prior to April 27, 2018, or on or after January 1, 2022; 5
(d) The decontamination [tax ]credit permitted by KRS 141.419; and 6
(e) The pass-through entity tax credit permitted by KRS 141.209. 7
Section 3. KRS 131.190 is amended to read as follows: 8
(1) No present or former commissioner or employee of the department, present or 9
former member of a county board of assessment appeals, present or former property 10
valuation administrator or employee, present or former secretary or employee of the 11
Finance and Administration Cabinet, former secretary or employee of the Revenue 12
Cabinet, or any other person, shall intentionally and without authorization inspec t 13
or divulge any information acquired by him or her of the affairs of any person, or 14
information regarding the tax schedules, returns, or reports required to be filed with 15
the department or other proper officer, or any information produced by a hearing or 16
investigation, insofar as the information may have to do with the affairs of the 17
person's business. 18
(2) The prohibition established by subsection (1) of this section shall not extend to: 19
(a) Information required in prosecutions for making false reports or returns of 20
property for taxation, or any other infraction of the tax laws; 21
(b) Any matter properly entered upon any assessment record, or in any way made 22
a matter of public record; 23
(c) Furnishing any taxpayer or his or her properly authorized agent with 24
information respecting his or her own return; 25
(d) Testimony provided by the commissioner or any employee of the department 26
in any court, or the introduction as evidence of returns or reports filed with the 27
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department, in an action for violation of state or f ederal tax laws or in any 1
action challenging state or federal tax laws; 2
(e) Providing an owner of unmined coal, oil or gas reserves, and other mineral or 3
energy resources assessed under KRS 132.820, or owners of surface land 4
under which the unmined mineral s lie, factual information about the owner's 5
property derived from third-party returns filed for that owner's property, under 6
the provisions of KRS 132.820, that is used to determine the owner's 7
assessment. This information shall be provided to the owner o n a confidential 8
basis, and the owner shall be subject to the penalties provided in KRS 9
131.990(2). The third -party filer shall be given prior notice of any disclosure 10
of information to the owner that was provided by the third-party filer; 11
(f) Providing to a third -party purchaser pursuant to an order entered in a 12
foreclosure action filed in a court of competent jurisdiction, factual 13
information related to the owner or lessee of coal, oil, gas reserves, or any 14
other mineral resources assessed under KRS 132.8 20. The department may 15
promulgate an administrative regulation establishing a fee schedule for the 16
provision of the information described in this paragraph. Any fee imposed 17
shall not exceed the greater of the actual cost of providing the information or 18
ten dollars ($10); 19
(g) Providing information to a licensing agency, the Transportation Cabinet, or 20
the Kentucky Supreme Court under KRS 131.1817; 21
(h) Statistics of gasoline and special fuels gallonage reported to the department 22
under KRS 138.210 to 138.448; 23
(i) Providing any utility gross receipts license tax return information that is 24
necessary to administer the provisions of KRS 160.613 to 160.617 to 25
applicable school districts on a confidential basis; 26
(j) Providing documents, data, or other information to a third party pursuant to an 27
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order issued by a court of competent jurisdiction; 1
(k) Publishing administrative writings on its official website in accordance with 2
KRS 131.020(1)(b); or 3
(l) Providing information to the Legislative Research Commission under: 4
1. KRS 139.519 for purposes of the sales and use tax refund on building 5
materials used for disaster recovery; 6
2. KRS 141.436 for purposes of the energy efficiency products credits; 7
3. KRS 141.437 for purposes of the ENERGY STAR home and the 8
ENERGY STAR manufactured home credits; 9
4. KRS 141.383 for purposes of the film industry incentives; 10
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 11
credit and the job assessment fees; 12
6. KRS 141.068 for purposes of the Kentucky investment fund; 13
7. KRS 141.396 for purposes of the angel investor credit; 14
8. KRS 141.389 for purposes of the distilled spirits credit; 15
9. KRS 141.408 for purposes of the inventory credit; 16
10. KRS 141.390 for purposes of the recycling and composting credits; 17
11. KRS 141.3841 for purposes of the selling farmer credit; 18
12. KRS 141.4231 for purposes of the re newable chemical production 19
credit; 20
13. KRS 141.524 for purposes of the Education Opportunity Account 21
Program credit; 22
14. KRS 141.398 for purposes of the development area credit; 23
15. KRS 139.516 for purposes of the sales and use tax exemptions for the 24
commercial mining of cryptocurrency; 25
16. KRS 141.419 for purposes of the decontamination credit; 26
17. KRS 141.391 for purposes of the qualified broadband investment credit; 27
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18. KRS 139.499 for purposes of the sales and use tax exemptions for a 1
qualified data center project;[ and] 2
19. KRS 139.5325 for purposes of the sales and use tax incentive for a 3
qualifying attraction; and 4
20. Section 1 of this Act for purposes of the accessible home credit. 5
(3) The commissioner shall make available any information for official use only and on 6
a confidential basis to the proper officer, agency, board or commission of this state, 7
any Kentucky county, any Kentucky city, any other state, or the federal 8
government, under reciprocal agreements whereby the department shall receive 9
similar or useful information in return. 10
(4) Access to and inspection of information received from the Internal Revenue Service 11
is for department use only, and is restricted to tax administration purposes. 12
Information received from the Internal Revenue Service shall not be made available 13
to any other agency of state government, or any county, city, or other state, and 14
shall not be inspected intentionally and without authorization by any present 15
secretary or employee of the Finance and Administration Cabinet, commissioner or 16
employee of the department, or any other person. 17
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 18
requirements of KRS Chapter 137 and statistics of natural gas production as 19
reported to the departmen t under the natural resources severance tax requirements 20
of KRS Chapter 143A may be made public by the department by release to the 21
Energy and Environment Cabinet, Department for Natural Resources. 22
(6) Notwithstanding any provision of law to the contrary, beginning with mine -map 23
submissions for the 1989 tax year, the department may make public or divulge only 24
those portions of mine maps submitted by taxpayers to the department pursuant to 25
KRS Chapter 132 for ad valorem tax purposes that depict the boundarie s of mined-26
out parcel areas. These electronic maps shall not be relied upon to determine actual 27
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boundaries of mined-out parcel areas. Property boundaries contained in mine maps 1
required under KRS Chapters 350 and 352 shall not be construed to constitute la nd 2
surveying or boundary surveys as defined by KRS 322.010 and any administrative 3
regulations promulgated thereto. 4