HB 869 — AN ACT relating to fiscal matters and declaring an emergency.

Summary

AN ACT relating to fiscal matters and declaring an emergency.

Bill Text

Action History

1. Free Conference Committee Report 1

2. Create a new section of KRS 141 to allow a refundable credit for economic development projects under the Kentucky Business Investment program of up to 2.25% of the wages paid to full-time employees of a project located in a heritage county or up to 1.25%of the wages paid to full-time employees of a project located in any other county within this state; amend KRS 154.12-207 to increase the maximum amount of skills training investment credit that may be allowed to $4,500 per trainee for approved companies in a heritage county or $3,500 per trainee for locations in any other county; remove the provisions that allow a refundable credit for economic development projects under the Kentucky Product Development Initiative for wages paid to full-time employees; remove the provisions that limit eligible costs to be recovered at $20,000 for each new full-time job created; increase the wage target to 200% of the federal minimum wage in heritage counites or 300% of the federal minimum wage for certain economic development projects; create a new section of subchapter 20 of KRS chapter 154 to allow a refundable certified mixed-use rehabilitation credit under approval by the Kentucky Economic Development Finance Authority; create a process by which an eligible taxpayer may apply for the credit; require KEDFA to approve the credit and report to the Department of Revenue; provide that the certified mixed-use credit be available against income taxes or insurance premium taxes that are imposed; allow the credit to be transferrable; create a new section of KRS Chapter 141 to provide for the administration and reporting of the credit by the department; create new sections of KRS Chapter 136 to provide for the administration and ordering of the credit as it relates to insurance premiums tax; amend KRS 148.853 to allow an approved company to enter into a new tourism development agreement for an entertainment destination center project, if the approved company has an expired agreement and has not been a party to an agreement in the last 5 years; require 100% of the incentives received under the new agreement to be reinvested into the project; require reporting of the incentives to the Kentucky Tourism Development Finance Authority; amend KRS 65.490 to define "existing development area," and "new development area"; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend the definition of "pilot program" to include a new development area that exists for 30 years; amend KRS 154.30-050 to increase the capital investment requirement for a state participation project to $500,000,000 from $200,000,000; require the project be owned by a Section 501(c)(3) organization; amend KRS 424.110 and 61.805 to define "time" in order to require that time be stated in both Eastern Standard Time and Central Standard Time in advertisements and notices made by governmental agencies; amend KRS 140.070 and 140.080 to include a nephew, niece, or nephew or niece of the half-blood as a Class A beneficiary; delete language that only applies to deaths occurring prior to July 1, 1995, or between July 1, 1995, and June 30, 1998; apply to estates of decedents who die on or after January 1, 2026; create a new section of KRS Chapter 141 to establish a nonrefundable income tax credit for alternative jet fuel producers; require the Department of Revenue, in conjunction with the Department of Agriculture and the Energy and Environment Cabinet, to promulgate administrative regulations; require the department to report on the credit to the Legislative Research Commission; amend KRS 141.0205 to order the credit; amend KRS 131.190 to allow the Department of Revenue to report on the credit; create a new section of KRS Chapter 139 to define terms; provide a rebate of 75% of the Kentucky sales tax generated by the sale of alternative jet fuel and agriculturally based alternative jet fuel ata commercial airport located in Kentucky; require that the rebate be used for reinvestment back into airport facilities and operations; amend KRS 67C.147 to disallow payments and reimbursements for a fire district operating under KRS Chapter 75 that received a payment or reimbursement from a consolidated local government for an emergency response made prior to July 1, 2025 into an urban service tax district; amend KRS 367.990 to establish what constitutes a separate violation of KRS 367.170; direct the Kentucky Film Leadership Council to perform a study on the needs of Kentucky's musicians and music venues; amend 2026 RS HB 757/VO, Sections 7 and 8 to make a technical correction; amend 2026 RS HB 757/VO, Section 118, to amend the definition of "new development area" to be independent of an existing development area; amend 2026 RS SB 185/EN, Section 1, to allow organizations that have entered into a public private lease agreement with Kentucky State University to be eligible to transact business or enter into a contract with the university or any other agency or instrumentality of the Commonwealth or subdivision thereof; amend 2026 RS HB 757/VO, Section 5, to extend the sunset the Signature Projects Program to December 31, 2028; amend KRS 186.456 to extend the pilot program for operator's license skills testing from June 30, 2026, to December 31, 2028; amend HB 707/VO, Section 107, to amend the definition of "modifier" to allow a reduction of 3.3% in calendar year 2026 and an additional 1.1% reduction in each calendar year after 2026 to 2048; amend 26 RS HB 904/VO, Section 22, to require that certain licensees not contract with entities offering sports event contracts or sports prediction markets, and allow the corporation to take administrative action if this section is violated; amend 2026 RS HB 677/EN, Section 25, to remove proposed facilities used in connection with the storage of electricity from solar or wind power from the construction certificate exemption and application requirements; amend 2026 RS HB 677/EN, Section 26, to amend the decommission plan requirements; direct the Cabinet for Economic Development to report on tax credits and incentives for hyperscale data centers and data centers in Kentucky and its surrounding states and provide the report to the Legislative Research Commission by August 1, 2027; amend 2026 RS HB 757/VO, section 97 to make technical correction; amend 2026 RS HB 757/VO sections 136, 139, and 140 to make technical correction to effective dates; RETROACTIVE, in part, July 1, 2025; EMERGENCY, EFFECTIVE, in part, August 1, 2026, January 1, 2027, July 1, 2027.

3. Administrative Regulations And Proceedings - Department of Revenue, airports, sales tax rebate Administrative Regulations And Proceedings - Department of Revenue, alternative jet fuel producers, tax credit Advertising - Advertisements, Eastern and Central Standard Times, reporting requirement Aeronautics And Aviation - Airport, alternative jet fuel sales, sales tax rebate Aeronautics And Aviation - Alternative jet fuel, income tax credit Children And Minors - Inheritance tax, nephew and niece, Class A beneficiaries Consolidated Local Governments - Emergency medical response payments or reimbursements Deaths - Inheritance tax, nephew and niece, Class A beneficiaries Driver Licensing - Operator's license skills testing pilot program, extension Economic Development - Certified mixed-use rehabiltaiton credit, approval Economic Development - Hyperscale data centers, tax credits and incentives, report Elections And Voting - Advertisements, Eastern and Central Standard Times, reporting requirement Firefighters And Fire Departments - Emergency medical response payments or reimbursements Fuel - Alternative jet fuel, income tax credit Gaming And Wagering - Wagering, regulation Insurance - Insurance premiums tax, certified mixed-use rehabilitation credit Police, State - Operator's license skills testing pilot program, extension Public Utilities - Merchant electric generating facilities Reports Mandated - Department of Revenue, alternative jet fuel producers, tax credit State Agencies - Advertisements, Eastern and Central Standard Times, reporting requirement State Agencies - Department of Revenue, alternative jet fuel producers, tax credit Studies Directed - Hyperscale data centers, tax credits and incentives, report Sunset Legislation - Operator's license skills testing pilot program, extension Sunset Legislation - TIF, Signature Projects Program, extension Taxation - Alternative jet fuel, income tax credit Taxation - Certified mixed-use rehabilitation credit, income tax Taxation - Certified mixed-use rehabilitation credit, insurance premiums tax Taxation - Hyperscale data centers, tax credits and incentives, report Taxation - Income tax, modified new revenues, calculation Taxation - Inheritance tax, nephew and niece, Class A beneficiaries Taxation - Motor fuels, gasoline, definition, technical correction Taxation - Professional golf sporting event, definition Taxation - Sales tax, airports, alternative jet fuel, rebate Taxation - TIF, Signature Projects Program, sunset extension and qualification requirements Taxation, Income--Corporate - Alternative jet fuel producers, tax credit Taxation, Income--Corporate - Certified mixed-use rehabilitation credit Taxation, Income--Corporate - Modified new revenues, calculation Taxation, Income--Individual - Alternative jet fuel producers, tax credit Taxation, Income--Individual - Certified mixed-use rehabilitation credit Taxation, Income--Individual - Modified new revenues, calculation Taxation, Inheritance And Estate - Class A beneficiaries, nephew and niece Taxation, Sales And Use - Airports, alternative jet fuel, rebate Taxation, Sales And Use - Professional golf sporting event, definition Technical Corrections - Effective dates Universities And Colleges - Kentucky State University, organizations with public private lease agreement, authority Urban Renewal - Qualified abandoned building, urban core area, tax credit

Sponsors

• J. Petrie A. Bowling · Primary

Votes

Subjects