AN ACT relating to education opportunity accounts.

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AN ACT relating to education opportunity accounts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 141.0205 is amended to read as follows: 3
If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax 4
imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of 5
the credits shall be determined as follows: 6
(1) The nonrefundable business incentive credits against the tax imposed by KRS 7
141.020 shall be taken in the following order: 8
(a) The limited liability entity tax credit permitted by KRS 141.0401; 9
(b) The economic development credits computed under KRS 141.347, 141.381, 10
141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12 -207, and 11
154.12-2088; 12
(c) The qualified farming operation credit permitted by KRS 141.412; 13
(d) The certified rehabilitation credit permitted by KRS 171.397(1)(a); 14
(e) The health insurance credit permitted by KRS 141.062; 15
(f) The tax paid to other states credit permitted by KRS 141.070; 16
(g) The credit for hiring the unemployed permitted by KRS 141.065; 17
(h) The recycling or composting equipment credit permitted by KRS 141.390; 18
(i) The[ tax] credit for cash contributions in 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 under 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
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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 railroad maintenance and improvement credit permitted by KRS 141.385; 4
(s) The Endow Kentucky credit permitted by KRS 141.438; 5
(t) The New Markets Development Program credit permitted by KRS 141.434; 6
(u) The distilled spirits credit permitted by KRS 141.389; 7
(v) The angel investor credit permitted by KRS 141.396; 8
(w) 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
(x) The inventory credit permitted by KRS 141.408; 11
(y) The renewable chemical production credit permitted by KRS 141.4231; and 12
(z) The qualified broadband investment[ tax] credit permitted by KRS 141.391; 13
(2) After the application of the nonrefundable credits in subsection (1) of this section, 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; and 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 the 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 ap plications 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 th e 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 Hig h School Equivalency Diploma 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 approved 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
and 21
(aa) [The Education Opportunity Account Program tax credit permitted by KRS 22
141.522; and 23
(ab) ]The qualified broadband investment[ tax] credit permitted by KRS 141.391; 24
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 2. KRS 131.190 is amended to read as follows: 8
(1) No present o r 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 inspect 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 asse ssment 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 federal 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 minerals 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 on a confidential 8
basis, and the owner shall be subject to the penalties prov ided 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 actio n 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 132.820. 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 Transpo rtation 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 renewable 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
14.[15.] KRS 139.516 for purposes of the sales and use tax exemption s for 24
the commercial mining of cryptocurrency; 25
15.[16.] KRS 141.419 for purposes of the decontamination credit; 26
16.[17.] KRS 141.391 for purposes of the qualified broadband investment 27
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credit; 1
17.[18.] KRS 139.499 for purposes of the sales and use tax exemp tions for 2
a qualified data center project; and 3
18.[19.] KRS 139.5325 for purposes of the sales and use tax incentive for a 4
qualifying attraction. 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 o ther 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 department 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 boundaries of mined -26
out parcel areas. These elect ronic 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 land 2
surveying or boundary surveys as defi ned by KRS 322.010 and any administrative 3
regulations promulgated thereto. 4
Section 3. The following KRS sections are repealed: 5
141.500 Education Opportunity Account Program. (See LRC Note below) 6
141.502 Definitions for KRS 141.500 to 141.528 (See LRC Note below) 7
141.504 Uniform process for education opportunity account allocation -- Qualifying 8
expenses -- Provision for eligible student in county with population of 90,000 or 9
more -- Duration of education opportun ity account -- Prioritization of funding -- 10
Restrictions. (See LRC Note below) 11
141.506 Application to establish an education opportunity account for eligible students -12
- Renewal -- Process to cease funding student account. (See LRC Note below) 13
141.508 Application for tax credit -- Preliminary approval subject to annual tax credit 14
cap -- Taxpayer notification -- Taxpayer contribution – Account-granting 15
organization certification of contribution. (See LRC Note below) 16
141.510 Certification and renewal of certification of an account-granting organization -- 17
Application -- Required information -- Department certification. (See LRC Note 18
below) 19
141.512 Minimal allocation of contributions required to education opportunity accounts 20
by account-granting organization -- Standard application process for establishment 21
of student eligibility for an account -- Transfer of funds from one account –granting 22
organization to another -- Donations. (See LRC Note below) 23
141.514 Administration of education opportunity account tax credit and cap -- Required 24
annual publications on department Web site. (See LRC Note below) 25
141.516 Audit of account -granting organization by department -- Notice of violation -- 26
Revocation of certificate. (See LRC Note below) 27
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141.518 Account-granting organization system of payment to education service 1
providers -- Payments to an education opportunity account -- Approval of education 2
service providers. (See LRC Note below) 3
141.520 Effect of Education Opportunity Account Program o n education service 4
provider -- Authority of government entities. (See LRC Note below) 5
141.522 Education Opportunity Account Program tax credit -- Cap on credit -- 6
Prioritization. (See LRC Note below) 7
141.524 Report by department on Education Oppor tunity Account Program. (See LRC 8
Note below) 9
141.526 Standing for parents of eligible students. (See LRC Note below) 10
141.528 Short title for KRS 141.500 to 141.528. (See LRC Note below) 11