HB378 creates a new nonrefundable individual income tax credit for certain costs incurred to make a qualified home modification to a Kentucky residence. The credit is available for taxable years beginning on or after January 1, 2026, and before January 1, 2030, and equals the actual cost of the modification up to $7,500 per taxable year. A qualifying modification must increase accessibility for an occupant who is either age 65 or older or has a qualifying physical or mental impairment lasting at least 12 months. The bill defines eligible taxpayers, occupants, qualified residences, and qualified home modifications, and allows the Department of Revenue to require invoices and documentation to verify eligibility.
The bill also amends Kentucky’s tax credit ordering rules so the new home modification credit is applied among the state’s nonrefundable personal income tax credits. In addition, it amends the state tax confidentiality statute to allow the Department of Revenue to share information with the Legislative Research Commission for reporting on this new credit. The department must submit annual reports beginning November 1, 2027, including county-level location data, credit amounts claimed, cumulative totals, and income-range data. The bill expressly states that the reported information is not confidential taxpayer information for purposes of disclosure restrictions.
The stated purpose of the credit is to help aging adults and people with physical or mental impairments cover the cost of accessibility-related home changes so they can remain in their homes longer. In practical terms, the bill would reduce Kentucky income tax liability for eligible taxpayers who pay for ramps, accessible bathrooms, widened doorways, or similar modifications, subject to the annual cap and the fact that the credit is nonrefundable.
Because no committee transcripts or recorded votes were provided, there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears policy-focused and targeted at aging-in-place and disability accessibility goals, with the main implementation issues likely centered on eligibility verification, administrative reporting, and the fiscal cost of the credit.
HB378 would add a new section to KRS Chapter 141 establishing a temporary nonrefundable individual income tax credit for qualified home modifications, and it would amend KRS 141.0205 to place that credit in the state’s credit-priority ordering. It would also amend KRS 131.190 to authorize disclosure of related credit information to the Legislative Research Commission for oversight reporting. The bill affects individual taxpayers who incur accessibility-related home modification costs for elderly or disabled occupants, and it gives the Department of Revenue authority to verify claims through invoices and documentation.
No committee discussion or vote history was provided, so the available record does not show formal support or opposition. The bill’s text suggests a generally favorable policy intent, aimed at helping older adults and people with disabilities remain in their homes by offsetting accessibility modification costs. The measure is framed as a targeted tax relief and housing-accessibility initiative rather than a broad tax change.
The main potential points of contention are likely to be fiscal cost, administrative complexity, and eligibility verification. Because the credit is nonrefundable and capped at $7,500 per year, some may question whether the benefit is sufficient, while others may object to the revenue loss or the reporting requirements that disclose county and income-range data. The bill also requires proof that the occupant meets age or disability criteria and that the costs were directly associated with a qualified modification, which could raise concerns about documentation burdens and enforcement.