Attention Investors:
2025 Policy Distilled: Week One
Last week the Kentucky General Assembly gaveled in for the first week of what is sure to be an eventful short legislative session. During the first four days of session they moved quickly to start the process of once again reducing Kentucky’s personal income tax reduction and filed over 250 bills. While legislators are now on a break until February 4, GLI is prepared to be the voice of the Greater Louisville business community when they reconvene and pass our top priority legislation.
INCOME TAX REDUCTION
As promised, the House moved quickly to pass the individual income tax reduction in their first week. House Bill 1 reduces the individual tax rate from 4% to 3.5%, as outlined in the revenue triggers adopted in previous sessions. The bill passed the House with bipartisan support on Thursday . It is now in the Senate, where it was given a reading and favorably reported by the Appropriations and Revenue Committee on Friday. GLI has been proud to advocate for a more competitive tax structure in Kentucky and applauds the General Assembly’s hard work to meet another trigger and bring the rate closer to the goal of eventually eliminating the state income tax.
STATE OF THE COMMONWEALTH
Last week Governor Andy Beshear delivered the State of the Commonwealth. Within the address, the governor discussed developments across the state over the past year including the establishment of “Our New Kentucky Home”, a talent initiative aimed at marketing the state for those looking to relocate. He also highlighted top economic development projects that have landed in the past year including Stellar Snacks in West Louisville. The speech took place in the legislative chambers and outlined the governor’s top priorities for the next year.
OTHER TOP PRIORITIES
- House Bill 87: Sponsored by Louisville representative Emily Callaway, this bill focuses on getting those with a history of criminal involvement back into the workforce. The bill would require employers to disclose if the applicant’s criminal history would disqualify them from the opportunity in advance to eliminate unnecessary expenses for training and certification.
- House Bill 135: Sponsored by Louisville representative Jared Bauman, this bill expands assault in the third degree to include causing or attempting to cause physical injury to a driver of any form of public transportation acting in the course and scope of the driver’s employment.
- House Bill 195: Sponsored by Louisville representative Susan Witten, this bill establishes a tax deduction for contributions made to an eligible savings account by a first-time home buyer and allow an exclusion from income for any interest earned from an eligible savings account of a first-time home buyer effective for taxable years beginning on or after January 1, 2026.