AN ACT relating to housing, making an appropriation therefor, and declaring an emergency.

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AN ACT relating to housing, making an appropriation therefor, and declaring an 1
emergency. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. A NEW SECTION OF KRS CHAPTER 198A IS CREATED TO 4
READ AS FOLLOWS: 5
(1) As used in this section: 6
(a) "Eligible activity" means providing construction loans for development or 7
rehabilitation of multifamily and single -family housing for individuals or 8
families with a family income equal to or less than one hundred percent 9
(100%) of the area median income; and 10
(b) "Eligible entity" means any of the following: 11
1. A unit of local government; 12
2. A local government housing authority; 13
3. Any regional or statewide housing assistance organization; or 14
4. Any organization duly organized and validly existing as a corporation 15
under the laws of the Commonwealth, any other state, or the United 16
States whose purpose includes the development, construction, 17
rehabilitation, or acquisition of housing. 18
(2) There is hereby established in the State Treasury a revolving account to be known 19
as the affordable housing loan pool fund. This fund shall be administered by the 20
corporation. The fund shall consist of moneys received from state appropriations, 21
gifts, grants, federal funds, and all loan repayments, interest, or other return on 22
the investment of fund moneys under this section. 23
(3) Notwithstanding KRS 45.229, any moneys remaining in the fund at the close of 24
the fiscal year shall not lapse but shall be carried forward i nto the succeeding 25
fiscal year to be used for the purposes set forth in this section. 26
(4) The corporation shall make loans from the fund to eligible entities to carry out 27
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eligible activities, with the following loan terms: 1
(a) A loan shall be for a term of no longer than forty-eight (48) months; and 2
(b) Interest rates shall not be greater than fifty percent (50%) of the prime rate 3
at the time the loan is originated. However, at no time may the interest rate 4
for a loan originated by the fund be lower than on e and one -half percent 5
(1.5%). 6
(5) Housing units funded under this section shall be deed restricted for a minimum 7
of fifteen (15) years as follows: 8
(a) All units shall maintain the same demographic restrictions on residents as 9
required by this section for initial selection; and 10
(b) Amendments to deed restrictions may be granted by the corporation on a 11
case-by-case basis. 12
(6) All loan repayments, interest, or other return on the investment of fund moneys 13
shall be deposited in the fund and used for eligible a ctivities in accordance with 14
this section. 15
(7) The corporation shall: 16
(a) Issue a public notice to eligible entities of the availability of moneys from 17
the fund at least once per calendar year and provide a reasonable 18
opportunity for the filing of loan app lications, provided sufficient funds are 19
available; 20
(b) Approve or deny properly submitted and completed loan applications within 21
one hundred eighty (180) days of receipt; 22
(c) Approve as many loan applications as will effectively use available moneys 23
in the fund; 24
(d) Approve or deny loan applications by ranking the applications competitively 25
using criteria established by the corporation with public and stakeholder 26
feedback; and 27
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(e) Require at least an established percentage of all moneys in the fund to be 1
used for housing in rural areas of the Commonwealth, as defined by the 2
corporation through an administrative regulation promulgated in 3
accordance with KRS Chapter 13A. 4
(8) A person or entity shall not discriminate in the sale or rental, or otherwise 5
making available or denying, a housing unit funded under this section to any 6
buyer or renter because of race, religion, sex, familial status, disability, or 7
national origin. 8
(9) The corporation may retain up to ten percent (10%) of the active project funds to 9
cover the administrative and compliance-related costs of this fund. 10
Section 2. KRS 198A.080 is amended to read as follows: 11
(1) There is hereby created and established a loan fund to be known as the housing 12
development fund and to be administered by the corporation as a trust fund separate 13
and distinct from all other moneys, funds, or assets administered by the corporation. 14
(2) (a) The housing development fund shall be comprised of and the corporation is 15
hereby authorized to receive and accept for the housing development fund the 16
proceeds of grants, contributions, appropriations, repayment of loans made 17
from the fund, the proceeds of fund notes, and any other moneys which may 18
be made available to the corporation for the purpos es of the housing 19
development fund from any other source. 20
(b) The corporation is hereby authorized to receive and accept from any source 21
whatever any grants or contributions for the housing development fund. 22
(c) 1. The corporation is authorized to provide for the issuance, at one (1) time 23
or from time to time, of housing development fund notes for the purpose 24
of providing funds for such fund; provided, however, that not more than 25
$5,000,000 fund notes or other borrow ings shall be outstanding at any 26
one (1) time. 27
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2. The principal of and the interest on any such fund notes shall be payable 1
solely from the housing development fund. 2
3. The fund notes of each issue shall be dated, shall mature at such time or 3
times not exceeding ten (10) years from their date or dates, and may be 4
made redeemable before maturity, at the option of the corporation, at 5
such price or prices and under such terms and conditions as may be 6
determined by the corporation. 7
4. The corporation shall d etermine the form and manner of execution of 8
the fund notes, including any interest coupons to be attached thereto, 9
and shall fix the denomination or denominations and the place or places 10
of payment of principal and interest, which may be any bank or trust 11
company within or without the state or any agent, including the lender. 12
5. In case any officer whose signature or a facsimile of whose signature 13
shall appear on any fund notes or coupons attached thereto shall cease to 14
be such officer before the delivery thereof, such signature or such 15
facsimile shall nevertheless be valid and sufficient for all purposes the 16
same as if he had remained in office until such delivery. 17
6. The fund notes may be issued in coupon or in registered form, or both, 18
as the corporation may determine, and provision may be made for the 19
registration of any coupon fund notes as to principal alone and also as to 20
both principal and interest, and for the reconversion into coupon fund 21
notes of any fund notes registered as to both principal and interest, and 22
for the interchange of registered and coupon fund notes. 23
7. Any such fund notes shall bear interest at such rate or rates as may be 24
determined by the corporation and may be sold in such manner, either at 25
public or private sale, and for such p rice as the corporation shall 26
determine to be for the best interest of the corporation and best 27
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effectuate the purposes of this chapter. 1
(3) The proceeds of any fund notes shall be used solely for the purposes for which 2
issued and shall be disbursed in suc h manner and under such restrictions, if any, as 3
the corporation may provide in the resolution authorizing the issuance of such fund 4
notes. The corporation may provide for the replacement of any fund notes which 5
shall become mutilated or shall be destroyed or lost. 6
(4) Fund notes may be issued under the provisions of this section without obtaining the 7
consent of any department, division, commission, board, body, bureau, or agency of 8
the state, and without any other proceedings or the happening of any condit ions or 9
things other than those proceedings, conditions, or things which are specifically 10
required by this chapter and the provisions of the resolution authorizing the 11
issuance of such fund notes. 12
(5) The purpose of the housing development fund is to provide a source from which the 13
corporation may make loans and grants, and the corporation is authorized to make 14
loans and grants from the housing development fund, at such interest rate or rates 15
and such term or terms as may be determined by the corporation to be for the best 16
interest of the corporation and best effectuate the purpose of this chapter, and with 17
such security for repayment as the corporation deems reasonably necessary and 18
practicable, to: 19
(a) Defray development costs of sponsors, builders, and de velopers of residential 20
housing, or 21
(b) Provide to persons and families of lower and moderate income who are 22
applying for mortgages, either for purchase or rehabilitation of residential 23
housing the amounts required to make down payments, pay closing costs, or 24
make interest payments, or 25
(c) Make or participate in the making of construction loans which are not 26
federally insured to sponsors, builders, and developers of land development or 27
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residential housing; provided, however, that such loans shall be made on ly 1
upon the determination by the corporation that construction loans are not 2
otherwise available, wholly or in part, from private lenders upon reasonably 3
equivalent terms and conditions. 4
(6) No temporary loans shall be made by the corporation from the hous ing 5
development fund except in accordance with a written agreement which shall 6
include, without limitation, the following terms and conditions: 7
(a) The proceeds of such loan shall be used only for the purpose for which such 8
loan shall have been made as provided in the agreement; 9
(b) Such loan shall be repaid in full as provided in the agreement; 10
(c) All repayments in connection with a loan to defray development costs shall be 11
made concurrent with receipt by the borrower of the proceeds of a 12
construction loan or mortgage loan, as the case may be, or at such other times 13
as the corporation deems reasonably necessary or practicable; and 14
(d) Such security for repayment shall be specified and shall be upon such terms 15
and conditions as the corporation deems reasona bly necessary or practicable 16
to ensure[insure] all repayments. 17
(7) No funds from the housing development fund shall be used to carry on propaganda 18
or otherwise attempt to influence legislation. 19
(8) (a) Notwithstanding other provisions of this section, the corporation may make 20
loans secured by a mortgage from the housing development fund to enable a 21
person[ sixty-two (62) years of age or older] who owns the home in which he 22
or she resides, whose household income [combined with his spouse ]does not 23
exceed one hundred percent (100%) of the area median income [six 24
thousand dollars ($6,000)] , and who meets any other reasonable standards 25
established by the corporation to make repairs to his or her home, including 26
but not limited to siding, weatherstripping, roofin g, gutters, electrical wiring, 27
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plumbing, and installation of sewers. 1
(b) The maximum principal amount of such loans shall not exceed twenty-five 2
thousand dollars ($25,000) [seven thousand dollars ($7,000)] and the 3
maximum interest rate shall not exceed thre e percent (3%). All loans shall be 4
repayable over a period of thirty (30) years. Upon the death of the borrowers 5
prior to maturity, the unpaid balance shall be paid in full by the person to 6
whom the house has passed by devise or descent[. 7
(c) The corporati on shall make loans under this section in an equal number in 8
each of the six (6) congressional districts]. 9
(9) The corporation shall provide notice of the availability of moneys from the fund 10
at least twice each calendar year to the general public through press releases, 11
social media, and other affordable housing organizations. 12
(10) (a) The corporation shall provide technical and administrative assistance to 13
applicants applying for assistance from the fund. 14
(b) The corporation may use fund moneys to provide technical and 15
administrative assistance to applicants. 16
(c) Technical and administrative costs may not exceed ten percent (10%) of the 17
loan funds appropriated for that fiscal year. 18
SECTION 3. A NEW SECTION OF KRS CHAPTER 198A IS CREATED TO 19
READ AS FOLLOWS: 20
(1) As used in this section: 21
(a) "Affordable housing credit" means the credit established in Section 4 of 22
this Act; 23
(b) "Department" means the Department of Revenue; 24
(c) "Eligibility statement" means the certificate issued by the corporation 25
indicating approval amount of the affordable housing credit; 26
(d) "Eligible taxpayer" means any taxpayer, corporation, pass -through entity, 27
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partner, member, or shareholder that has ownership of the qualified low -1
income housing project and has been approved for the federal lo w-income 2
housing tax credit for the construction or substantial rehabilitation of a 3
qualified low-income housing project in this state; 4
(e) "Federal low-income housing tax credit" means the federal credit claimed 5
in accordance with 26 U.S.C. sec. 42 and awarded by the corporation; 6
(f) "Qualified allocation plan" has the same meaning as in 26 U.S.C. sec. 42; 7
and 8
(g) "Qualified low -income housing project" has the same meaning as in 26 9
U.S.C. sec. 42. 10
(2) Beginning with applications received for federal low -income housing tax credit 11
approval during calendar year 2027, the corporation shall also review and 12
approve credit for the affordable housing credit. 13
(3) Approval for the affordable housing credit shall be: 14
(a) Awarded in the same manner as the federal low -income housing tax credit, 15
in accordance with the corporation's qualified allocation plan and subject 16
to the limits in subsection (5) of this section; and 17
(b) In an amount that shall be determined by the corporation on a project -18
specific basis for maximum utilization of available credit. 19
(4) Eligible taxpayers seeking approval of the affordable housing credit shall request 20
the credit on a separate statement or form as prescribed by the corporation, and 21
attach it to the federal low-income housing tax credit application. 22
(5) The affordable housing credit is limited to: 23
(a) Two million dollars ($2,000,000) per eligible taxpayer; and 24
(b) An aggregate total of twenty million dollars ($20,000,000) for all credits in 25
each year for which the credit is available. 26
(6) The corporation shall notify taxpayers of the affordable housing credit approval 27
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in the same manner as the federal low -income housing tax credit and provide an 1
eligibility statement. 2
(7) The affordable housing credit is available for taxable years beginn ing on or after 3
January 1, 2027, but before January 1, 2031. The corporation shall report to the 4
department on or before December 1, 2028, and on or before each December 1 5
thereafter as long as the Kentucky affordable housing credit is available, the 6
following: 7
(a) The name of the qualified low-income housing project; 8
(b) The name and federal employer identification number of the eligible 9
taxpayer; and 10
(c) The amount of affordable housing credit awarded. 11
(8) The corporation shall also report to the departme nt, on an annual basis, any 12
qualified low -income housing project that is no longer in compliance in 13
accordance with the federal low -income housing tax credit guidelines established 14
in 26 U.S.C. sec. 42, and include: 15
(a) The name of the qualified low-income housing project; 16
(b) The name and federal employer identification number of the eligible 17
taxpayer; 18
(c) The amount of affordable housing credit subject to recapture which shall be 19
based on the portion of federal low -income housing tax credit also subject 20
to recapture; and 21
(d) The date for which the low -income housing project was found to be 22
noncompliant. 23
SECTION 4. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO 24
READ AS FOLLOWS: 25
(1) As used in this section: 26
(a) "Corporation" means the Kentucky Housing Corporation established in 27
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KRS 198A.030; 1
(b) "Eligibility statement" has the same meaning as in Section 3 of this Act; 2
(c) "Eligible taxpayer" has the same meaning as in Section 3 of this Act; 3
(d) "Federal low -income housing tax credit" has the same meaning as in 4
Section 3 of this Act; and 5
(e) "Qualified low -income housing project" has the same meaning as in 26 6
U.S.C. sec. 42. 7
(2) (a) For taxable years beginning on or after January 1, 2027, but before 8
January 1, 2031, there shall be allowed a nonrefundable, transferable 9
affordable housing credit allowed against the tax imposed in KRS 141.020 10
or 141.040 and 141.0401, wi th the ordering of the credit as provided in 11
Section 5 of this Act. 12
(b) The credit shall be: 13
1. Awarded by the corporation on a project specific basis; 14
2. Subject to the limits in Section 3 of this Act; 15
3. Claimed in the taxable year in which the qualified low-income 16
housing project is placed in service; and 17
4. Available for carryforward for a period not to exceed ten (10) 18
consecutive years, after which any excess credit shall be lost. 19
(3) The affordable housing credit shall not be used in conjunction with any other 20
credit established within this chapter for the construction or substantial 21
rehabilitation of a qualified low-income housing project. 22
(4) If the eligible taxpayer is a pass -through entity, and the credit is not transferred 23
in accordance with subsection (5) of this section, the credit shall be distributed to 24
each partner, member, or shareholder in accordance with that partner's, 25
member's, or shareholder's distributive share for the taxable year in which credit 26
is awarded. 27
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(5) At the option of the el igible taxpayer, all or a portion of the credit may be 1
transferred or allocated to another party. The eligible taxpayer shall notify the 2
department within thirty (30) days of the date of transfer and include: 3
(a) The name, address, and federal employer ide ntification number of the party 4
to which the credits are transferred; 5
(b) The amount of credit transferred; and 6
(c) Any additional information the department may require. 7
(6) If the federal low -income housing tax credit is recaptured, the same portion of 8
the state affordable housing credit shall also be recaptured in accordance with 9
Section 3 of this Act and repaid by the eligible taxpayer. 10
(7) The recapture of the affordable housing credit shall be paid for the taxable year 11
in which the noncompliance occurred and shall be reflected as an increase in the 12
eligible taxpayer's tax liability. Additional tax, interest, and penalties shall be 13
assessed against the eligible taxpayer and not any transfer recipient. 14
(8) In order to verify the affordable housing credit, the department may: 15
(a) Require a copy of the eligibility statement; and 16
(b) Work with the corporation. 17
(9) The department may promulgate administrative regulations in accordance with 18
KRS Chapter 13A to implement policies and procedures that assist with the 19
administration of this credit. 20
(10) (a) By November 1 of each year in which an affordable housing credit is 21
claimed, the department shall report to the Legislative Research 22
Commission for referral to the Interim Joint Committee on Appropriations 23
and Revenue: 24
1. The total number of returns claiming the affordable housing credit; 25
2. The location and name of each qualified low-income housing project; 26
3. The amount of credit claimed for each qualified low -income housing 27
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project, by county location of the low-income housing project; 1
4. The total amoun t of credit claimed for each taxable year for each 2
qualified housing project; and 3
5. a. In the case of taxpayers other than corporations, based on 4
ranges of adjusted gross income of no larger than five thousand 5
dollars ($5,000) for the taxable year, the to tal amount of credits 6
claimed and the number of returns claiming a credit for each 7
adjusted gross income range; and 8
b. In the case of all corporations, based on ranges of net income no 9
larger than fifty thousand dollars ($50,000) for the taxable year, 10
the total amount of credit claimed and the number of returns 11
claiming a credit for each net income range. 12
(b) The information required to be reported under this section shall not be 13
considered confidential taxpayer information and shall not be subject to 14
KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes 15
prohibiting disclosure or reporting of information. 16
Section 5. KRS 141.0205 is amended to read as follows: 17
If a taxpayer is entitled to more than one (1 ) of the tax credits allowed against the tax 18
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 19
the credits shall be determined as follows: 20
(1) The nonrefundable business incentive credits against the tax imposed by KRS 21
141.020 shall be taken in the following order: 22
(a) The limited liability entity tax credit permitted by KRS 141.0401; 23
(b) The economic development credits computed under KRS 141.347, 141.381, 24
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12 -207, and 25
154.12-2088; 26
(c) The qualified farming operation credit permitted by KRS 141.412; 27
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(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 1
(e) The health insurance credit permitted by KRS 141.062; 2
(f) The tax paid to other states credit permitted by KRS 141.070; 3
(g) The credit for hiring the unemployed permitted by KRS 141.065; 4
(h) The recycling or composting equipment credit permitted by KRS 141.390; 5
(i) The [tax ]credit for cash contributions in investment funds permitted by KRS 6
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 7
154.20-258; 8
(j) The research facilities credit permitted by KRS 141.395; 9
(k) The employer High School Equivalency Diploma program incentive credit 10
permitted under KRS 151B.402; 11
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 12
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 13
(n) The clean coal incentive credit permitted by KRS 141.428; 14
(o) The ethanol credit permitted by KRS 141.4242; 15
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 16
(q) The energy efficiency credits permitted by KRS 141.436; 17
(r) The railroad maintenance and improvement credit permitted by KRS 141.385; 18
(s) The Endow Kentucky credit permitted by KRS 141.438; 19
(t) The New Markets Development Program credit permitted by KRS 141.434; 20
(u) The distilled spirits credit permitted by KRS 141.389; 21
(v) The angel investor credit permitted by KRS 141.396; 22
(w) The film industry credit permitted by KRS 141.383 for applicatio ns approved 23
on or after April 27, 2018, but before January 1, 2022; 24
(x) The inventory credit permitted by KRS 141.408; 25
(y) The renewable chemical production credit permitted by KRS 141.4231;[ and] 26
(z) The qualified broadband investment tax credit permitted by KRS 141.391; 27
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and 1
(aa) The affordable housing credit permitted by Section 4 of this Act; 2
(2) After the application of the nonrefundable credits in subsection (1) of this section, 3
the nonrefundable personal tax credits against the tax imposed by KRS 141. 020 4
shall be taken in the following order: 5
(a) The individual credits permitted by KRS 141.020(3); 6
(b) The credit permitted by KRS 141.066; 7
(c) The tuition credit permitted by KRS 141.069; 8
(d) The household and dependent care credit permitted by KRS 141.067; 9
(e) The income gap credit permitted by KRS 141.066; and 10
(f) The Education Opportunity Account Program [tax ]credit permitted by KRS 11
141.522; 12
(3) After the application of the nonrefundable credits provided for in subsection (2) of 13
this section, the refundable credits against the tax imposed by KRS 141.020 shall be 14
taken in the following order: 15
(a) The individual withholding tax credit permitted by KRS 141.350; 16
(b) The individual estimated tax payment credit permitted by KRS 141.305; 17
(c) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 18
171.397(1)(b); 19
(d) The film industry [tax ] credit permitted by KRS 141.383 for applications 20
approved prior to April 27, 2018, or on or after January 1, 2022; 21
(e) The development area [tax ]credit permitted by KRS 141.398; 22
(f) The decontamination [tax ]credit permitted by KRS 141.419; and 23
(g) The pass-through entity tax credit permitted by KRS 141.209; 24
(4) The nonrefundable credit permitted by KRS 141.0401 shall be applied against the 25
tax imposed by KRS 141.040; 26
(5) The following nonrefundable credits shall be applied against the sum of the tax 27
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imposed by KRS 141.040 after subtracting the credit provided for in subsection (4) 1
of this section, and the tax imposed by KRS 141.0401 in the following order: 2
(a) 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
(b) The qualified farming operation credit permitted by KRS 141.412; 6
(c) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 7
(d) The health insurance credit permitted by KRS 141.062; 8
(e) The unemployment credit permitted by KRS 141.065; 9
(f) The recycling or composting equipment credit permitted by KRS 141.390; 10
(g) The coal conversion credit permitted by KRS 141.041; 11
(h) The enterprise zone credit permitted by KRS 154.45 -090, for taxable periods 12
ending prior to January 1, 2008; 13
(i) The [tax ]credit for cash contributions to investment funds permitted by KRS 14
154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS 15
154.20-258; 16
(j) The research facilities credit permitted by KRS 141.395; 17
(k) The employer High School Equivalency Diploma program incentive credit 18
permitted by KRS 151B.402; 19
(l) The voluntary environmental remediation credit permitted by KRS 141.418; 20
(m) The biodiesel and renewable diesel credit permitted by KRS 141.423; 21
(n) The clean coal incentive credit permitted by KRS 141.428; 22
(o) The ethanol credit permitted by KRS 141.4242; 23
(p) The cellulosic ethanol credit permitted by KRS 141.4244; 24
(q) The energy efficiency credits permitted by KRS 141.436; 25
(r) The ENERGY STAR home or ENERGY STAR manufactured home credit 26
permitted by KRS 141.437; 27
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(s) The railroad maintenance and improvement credit permitted by KRS 141.385; 1
(t) The railroad expansion credit permitted by KRS 141.386; 2
(u) The Endow Kentucky credit permitted by KRS 141.438; 3
(v) The New Markets Development Program credit permitted by KRS 141.434; 4
(w) The distilled spirits credit permitted by KRS 141.389; 5
(x) The film industry credit permitted by KRS 141.383 for applications approved 6
on or after April 27, 2018, but before January 1, 2022; 7
(y) The inventory credit permitted by KRS 141.408; 8
(z) The renewable chemical production tax credit permitted by KRS 141.4231; 9
(aa) The Education Opportunity Account Program tax credit permitted by KRS 10
141.522;[ and] 11
(ab) The qualified broadband investment [tax ]credit permitted by KRS 141.391; 12
and 13
(ac) The affordable housing credit permitted by Section 4 of this Act; and 14
(6) After the application of the nonrefundable credits in subsection (5) of this section, 15
the refundable credits shall be taken in the following order: 16
(a) The corporation estimated tax payment credit permitted by KRS 141.044; 17
(b) The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and 18
171.397(1)(b); 19
(c) The film industry [tax ] credit permitted by KRS 141.383 for applicatio ns 20
approved prior to April 27, 2018, or on or after January 1, 2022; 21
(d) The decontamination [tax ]credit permitted by KRS 141.419; and 22
(e) The pass-through entity tax credit permitted by KRS 141.209. 23
Section 6. 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
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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 aff airs 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 penalti es 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
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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 establ ishing 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 informatio n 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; 17
(k) Publishing administrative writings on its official website in accordance with 18
KRS 131.020(1)(b); or 19
(l) Providing information to the Legislative Research Commission under: 20
1. KRS 139.519 for purposes of the sales and use tax refund on buildin g 21
materials used for disaster recovery; 22
2. KRS 141.436 for purposes of the energy efficiency products credits; 23
3. KRS 141.437 for purposes of the ENERGY STAR home and the 24
ENERGY STAR manufactured home credits; 25
4. KRS 141.383 for purposes of the film industry incentives; 26
5. KRS 154.26-095 for purposes of the Kentucky industrial revitalization 27
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credit and the job assessment fees; 1
6. KRS 141.068 for purposes of the Kentucky investment fund; 2
7. KRS 141.396 for purposes of the angel investor credit; 3
8. KRS 141.389 for purposes of the distilled spirits credit; 4
9. KRS 141.408 for purposes of the inventory credit; 5
10. KRS 141.390 for purposes of the recycling and composting credits; 6
11. KRS 141.3841 for purposes of the selling farmer credit; 7
12. KRS 141.4231 for purposes of the renewable chemical production 8
credit; 9
13. KRS 141.524 for purposes of the Education Opportunity Accoun t 10
Program credit; 11
14. KRS 141.398 for purposes of the development area credit; 12
15. KRS 139.516 for purposes of the sales and use tax exemptions for the 13
commercial mining of cryptocurrency; 14
16. KRS 141.419 for purposes of the decontamination credit; 15
17. KRS 141.391 for purposes of the qualified broadband investment credit; 16
18. KRS 139.499 for purposes of the sales and use tax exemptions for a 17
qualified data center project;[ and] 18
19. KRS 139.5325 for purposes of the sales and use tax incentive for a 19
qualifying attraction; and 20
20. Section 4 of this Act for purposes of the affordable housing credit. 21
(3) The commissioner shall make available any information for official use only and on 22
a confidential basis to the proper officer, agency, board or commission of thi s state, 23
any Kentucky county, any Kentucky city, any other state, or the federal 24
government, under reciprocal agreements whereby the department shall receive 25
similar or useful information in return. 26
(4) Access to and inspection of information received from the Internal Revenue Service 27
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is for department use only, and is restricted to tax administration purposes. 1
Information received from the Internal Revenue Service shall not be made available 2
to any other agency of state government, or any county, city, or other state, and 3
shall not be inspected intentionally and without authorization by any present 4
secretary or employee of the Finance and Administration Cabinet, commissioner or 5
employee of the department, or any other person. 6
(5) Statistics of crude oil as reported to the department under the crude oil excise tax 7
requirements of KRS Chapter 137 and statistics of natural gas production as 8
reported to the department under the natural resources severance tax requirements 9
of KRS Chapter 143A may be made public b y the department by release to the 10
Energy and Environment Cabinet, Department for Natural Resources. 11
(6) Notwithstanding any provision of law to the contrary, beginning with mine -map 12
submissions for the 1989 tax year, the department may make public or divu lge only 13
those portions of mine maps submitted by taxpayers to the department pursuant to 14
KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined -15
out parcel areas. These electronic maps shall not be relied upon to determine actual 16
boundaries of mined-out parcel areas. Property boundaries contained in mine maps 17
required under KRS Chapters 350 and 352 shall not be construed to constitute land 18
surveying or boundary surveys as defined by KRS 322.010 and any administrative 19
regulations promulgated thereto. 20
Section 7. There is hereby appropriated General Fund moneys from the Budget 21
Reserve Trust Fund Account established by KRS 48.705 in the amount of $100,000,000 22
in fiscal year 2026 -2027 to the Affordable Housing Loan Pool Fund for the purposes set 23
forth in Section 1 of this Act. 24
Section 8. There is hereby appropriated General Fund moneys from the Budget 25
Reserve Trust Fund Account established by KRS 48.705 in the amount o f $2,000,000 in 26
fiscal year 2026 -2027 to the Housing Development Fund for the purposes set forth in 27
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Section 2 of this Act. 1
Section 9. Whereas providing timely funding for housing initiatives in the 2
Commonwealth is important for the citizens of this state, an emergency is declared to 3
exist, and this Act takes effect July 1, 2026. 4