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Read. Follow. Verify.Kentucky creates a nonrefundable tax credit for educational savings plan trust account contributions up to $19,000
Last action · January 14, 2026: to Appropriations & Revenue (H)Sponsors: Chad Aull and 1 other
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What This Bill Proposed
Kentucky establishes a nonrefundable tax credit for resident taxpayers contributing to Kentucky Educational Savings Plan Trust accounts, beginning for taxable years 2027 through 2030, capped at $19,000 per taxpayer annually.
Resident taxpayers making contributions to designated educational savings trusts can reduce their state tax liability by up to $19,000 per year, while state revenue departments must annually report usage statistics to legislative committees.
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.
Resident Taxpayers
Resident taxpayers contributing to Kentucky Educational Savings Plan Trust accounts become eligible for a nonrefundable state tax credit up to $19,000 per year.
Legislative Research Commission
The Commission receives annual reports from the department detailing the utilization, distribution by county, and income ranges of taxpayers claiming the credit.
Key Facts
- A new nonrefundable, nontransferable tax credit is established for resident taxpayers making contributions to a Kentucky Educational Savings Plan Trust account.
- The tax credit is available for taxable years beginning on or after January 1, 2027, and before January 1, 2031.
- The credit equals total contributions made to the savings plan trust account for the taxable year, up to a maximum of $19,000 per taxpayer per taxable year.
- By November 1 of each year, the department must report credit claim statistics, county breakdowns, and adjusted gross income ranges to the Legislative Research Commission.
Show all 6 facts
- The credit is added to the priority list of nonrefundable personal tax credits against the tax imposed by KRS 141.020.
- Statutory confidentiality provisions are amended to permit the department to provide information regarding the new credit to the Legislative Research Commission.
Frequently Asked Questions
Who is eligible for the Kentucky Educational Savings Plan Trust account contribution credit?
What is the maximum amount of the tax credit a taxpayer can claim in a single year?
Is the tax credit refundable or transferable?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Jan 14, 2026HouseCommitteeto Appropriations & Revenue (H)
- Jan 7, 2026HouseIntroducedintroduced 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.
Sponsors
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 60)
- Controversy15Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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