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HB 167KENTUCKYSession 2026RSState Billdead

Did Not Advance

Kentucky Bill Allows Individual Income Tax Deductions for Theft Losses

Original title: AN ACT relating to a tax deduction for theft losses.

Last action · January 14, 2026: to Appropriations & Revenue (H)Sponsor: Ken Fleming

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Proposed

Kentucky House Bill 167 permits individual taxpayers to deduct theft losses under Section 165(e) of the Internal Revenue Code when calculating for state tax purposes.

Why it matters

Individual taxpayers who experience theft losses can potentially lower their state taxable income by utilizing deductions previously excluded under state rules, altering how personal financial losses are reported on state tax returns.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

individual taxpayers

Individual taxpayers are permitted to deduct theft losses when calculating their state net income.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Does this bill allow me to deduct general financial losses on my state taxes?

No. The bill continues to disallow general deductions for losses under 26 U.S.C. sec. 165, but creates a specific exception allowing theft losses under Section 165(e) and wagering losses under Section 165(d).

Who does this tax law change apply to?

It applies to individual taxpayers other than corporations in the Commonwealth of Kentucky.

What else do you want to know?

News Coverage

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Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

2 actions

Jan 14, 2026HouseCommittee
to Appropriations & Revenue (H)
Jan 7, 2026HouseIntroduced
introduced in House to Committee on Committees (H)

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Connected Entities

Internal Revenue Service

OrganizationInternal Revenue Service“Mentioned regarding rulings on employee pension contributions.”Map →

Sources

Open source document

apps.legislature.ky.gov

Analysis Score

0–100

Significance20
Lowered because this bill did not pass (its text scored 45)
Controversy15
Intensity of disagreement among stakeholders
Entertainment5
Compellingness for a non-policy-wonk reader
Buzz10
Current news / social attention level

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