HB 158 — AN ACT relating to a tax credit for qualified home modifications.

Summary

Create a new section of KRS Chapter 141 to establish the qualified home modification credit against the tax imposed in KRS 141.020; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit.

Bill Text

• Introduced View text Current pdf

Compared against the Kentucky Revised Statutes as published AI-generated reading aid — verify against the official bill.

The bill introduces a nonrefundable tax credit for qualified home modifications, prioritizes its application, and amends existing tax credit regulations.

• KRS 141.0205

  The qualified home modification credit permitted by Section 1 of this Act;

  Adds the new qualified home modification tax credit to the list of nonrefundable personal tax credits.

• For taxable years beginning on or after January 1, 2027, but before January 1, 2031, an eligible taxpayer may claim a nonrefundable credit against the tax imposed under KRS 141.020 for a qualified home modification.

  Establishes a new nonrefundable tax credit for individuals making qualified home modifications to improve accessibility.

• The amount of the credit allowed in paragraph (a) of this subsection shall be equal to the actual costs of the qualified home modification, up to seven thousand five hundred dollars ($7,500) for each taxable year in which a qualified home modification is made to a qualified residence.

  Sets a limit on the nonrefundable credit amount available for qualified home modifications.

• In order to verify the tax credit claimed, the department may require: Invoices to substantiate the costs associated with the qualified home modification; and Documentation that the eligible taxpayer and occupant meet the definitions established in subsection (1) of this section.

  Allows the tax department to request documentation to verify claims for the new home modification tax credit.

• The purpose of the qualified home modification tax credit is to assist occupants with physical and mental impairments and aging adults with costs associated with making necessary adjustments to a qualified residence to allow the occupant to remain in the qualified residence longer.

  Clarifies the intent behind the qualified home modification tax credit to support aging adults and individuals with disabilities.

• In order for the General Assembly to evaluate the effectiveness of the qualified home modification tax credit, the department shall submit a report to the Interim Joint Committee on Appropriations and Revenue on or before November 1, 2028, and on or before each November 1 thereafter as long as the credit may be claimed.

  Requires the department to report on the effectiveness of the new home modification tax credit.

• The information required to be reported under this section shall not be considered confidential taxpayer information and shall not be subject to KRS Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting disclosure or reporting of information.

  Ensures that the data collected for the new home modification tax credit is not treated as confidential.

Action History

1. January 14, 2026

   to Appropriations & Revenue (H)

2. January 07, 2026

   to Committee on Committees (H)

3. January 07, 2026

   introduced in House

Sponsors

• Rachel Roarx · Primary
• Al Gentry · Primary
• Adrielle Camuel · Primary

Subjects