HB 870

UNOFFICIAL COPY  26 RS BR 858
1AN ACT relating to public transportation, making an appropriation therefor, and
2 declaring an emergency.
3 Be it enacted by the General Assembly of the Commonwealth of Kentucky:
4Section 1. KRS 96A.096 is amended to read as follows:
5 (1)    There is created in the State Treasury a special fund to be known as the ["]Kentucky
6public transportation development fund.["]
7 (2)    The fund shall be administered by the Transportation Cabinet.
8 (3)    All moneys deposited[ or paid] into the[this] fund are appropriated and shall be
9available to the Transportation Cabinet for the purposes of KRS 96A.095 and[. All
10moneys in this fund] shall be expended for public transportation capital and
11operating subsidies, public transportation development, or administrative costs
12incidental to these developments.
13 (4)    The fund shall consist of:
14(a)    Moneys[ all money] appropriated by the state;
15(b)    Moneys[ and all money] received from the United States or from any other
16source for the purpose of providing public transportation capital and operating
17subsidies and public transportation development funds; and
18(c)    Voluntary contributions made by Kentucky employers, which shall not
19exceed five-hundredths of one percent (0.05%) of the employer's total
20payroll.
21 (5)    All moneys in the[ Kentucky public transportation development] fund shall be
22deposited, administered, and dispersed in the same manner and under the same
23conditions and requirements as are provided by law for other special funds in the
24State Treasury, except that:
25(a)    Moneys in the fund received through voluntary contributions specified in
26subsection (4)(c) of this section shall be used for providing public transit for
27workforce mobility needs;
  Page 1 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1(b)    Moneys distributed to public transit systems from the fund shall be allocated
2based on the following percentages:
31.  Thirty-five percent (35%) of the total amount distributed shall go to
4each eligible public transit system as a guaranteed minimum base
5amount;
62.  Thirty-five percent (35%) of the total amount distributed shall be
7based on the needs of the public transit systems, which shall be
8weighted by unlinked passenger trips, service hours, and the number
9of low-income or no-vehicle households served;
103.  Twenty percent (20%) of the total amount distributed shall be based on
11rural equity; and
124.  Ten percent (10%) of the total amount distributed shall be based on
13performance using prior-year metrics that include cost efficiency, on-
14time performance, ridership recovery, and safety; and
15(c)    Any balance in this fund shall not lapse at any time but shall be continuously
16available to the Transportation Cabinet for the purposes of carrying out the
17provisions of KRS 96A.095.
18 (6)    A general statement that all continuing appropriations are repealed shall not be
19construed as abolishing this fund.
20 (7)    Each public transit system that receives moneys from this fund shall provide an
21annual report on the use of the moneys to the Transportation Cabinet on or
22before October 1 of each year.
23 (8)    The Transportation Cabinet shall provide an annual report on or before
24December 1 to the Legislative Research Commission for referral to the Interim
25Joint Committees on Appropriations and Revenue and Transportation. The
26report shall include the following information for the previous fiscal year:
27(a)    The total moneys deposited in the fund;
  Page 2 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1(b)    The total moneys distributed to each public transit system;
2(c)    An explanation of the methods used to determine the amount of funds
3distributed to each public transit system based on the allocation
4requirements under subsection (5)(b) of this section; and
5(d)    The use of the moneys received by each public transit system.
6SECTION 2. A NEW SECTION OF KRS CHAPTER 141 IS CREATED TO
7 READ AS FOLLOWS:
8 (1)    As used in this section:
9(a)    "Kentucky public transportation development fund" means the fund
10established in Section 1 of this Act;
11(b)    "Public transportation contribution" means the:
121.  Amounts of moneys contributed to the Kentucky public transportation
13development fund; or
142.  Monetary value of transit authority passes, vouchers, tickets or any
15other form of fare that provides for transfer on transit authority
16vehicles utilized by employees of the employer making the contribution
17in commuting to and from their place of employment; and
18(c)    "Transit authority" means a transit authority established in accordance
19with KRS 96A.020.
20 (2)    For taxable years beginning on or after January 1, 2027, but before January 1,
212031, there is hereby established the nonrefundable, nontransferable public
22transportation contribution credit allowed against the tax imposed in KRS
23141.020 or 141.040 and 141.0401 with the ordering of the credit as provided in
24Section 3 of this Act.
25 (3)    The credit shall:
26(a)    Equal the public transportation contribution made by an employer in this
27state to promote the utilization of transit authority transportation by its
  Page 3 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1employees; and
2(b)    Not exceed fifty percent (50%) of the total amount of the public
3transportation contribution made for the taxable year by the employer.
4 (4)    (a)    By November 1 of each year in which a public transportation contribution
5credit is claimed, the department shall report to the Legislative Research
6Commission for referral to the Interim Joint Committee on Appropriations
7and Revenue:
81.  The number of taxpayers, by county that claimed the credit for each
9taxable year;
102.  The total amount of credit, by county claimed for each taxable year;
11and
123.  a.    In the case of taxpayers other than corporations, based on
13ranges of adjusted gross income of no larger than five thousand
14dollars ($5,000) for the taxable year, the total amount of credit
15claimed and the total number of returns claiming this credit for
16each adjusted gross income range; and
17b.    In the case of corporations, based on net income of no larger
18than fifty thousand dollars ($50,000) for the taxable year, the
19total amount of credit claimed and the total number of returns
20claiming this credit for each net income range.
21 (b)    The information required to be reported under this section shall not be
22considered confidential taxpayer information and shall not be subject to KRS
23Chapter 131 or any other provisions of the Kentucky Revised Statutes prohibiting
24disclosure or reporting of information.
25Section 3. KRS 141.0205 is amended to read as follows:
26 If a taxpayer is entitled to more than one (1) of the tax credits allowed against the tax
27 imposed by KRS 141.020, 141.040, and 141.0401, the priority of application and use of
  Page 4 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1 the credits shall be determined as follows:
2 (1)    The nonrefundable business incentive credits against the tax imposed by KRS
3141.020 shall be taken in the following order:
4(a)    The limited liability entity tax credit permitted by KRS 141.0401;
5(b)    The economic development credits computed under KRS 141.347, 141.381,
6141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and
7154.12-2088;
8(c)    The qualified farming operation credit permitted by KRS 141.412;
9(d)    The certified rehabilitation credit permitted by KRS 171.397(1)(a);
10(e)    The health insurance credit permitted by KRS 141.062;
11(f)    The tax paid to other states credit permitted by KRS 141.070;
12(g)    The credit for hiring the unemployed permitted by KRS 141.065;
13(h)    The recycling or composting equipment credit permitted by KRS 141.390;
14(i)    The [tax ]credit for cash contributions in investment funds permitted by KRS
15154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS
16154.20-258;
17(j)    The research facilities credit permitted by KRS 141.395;
18(k)    The employer High School Equivalency Diploma program incentive credit
19permitted under KRS 151B.402;
20(l)    The voluntary environmental remediation credit permitted by KRS 141.418;
21(m) The biodiesel and renewable diesel credit permitted by KRS 141.423;
22(n)    The clean coal incentive credit permitted by KRS 141.428;
23(o)    The ethanol credit permitted by KRS 141.4242;
24(p)    The cellulosic ethanol credit permitted by KRS 141.4244;
25(q)    The energy efficiency credits permitted by KRS 141.436;
26(r)    The railroad maintenance and improvement credit permitted by KRS 141.385;
27(s)    The Endow Kentucky credit permitted by KRS 141.438;
  Page 5 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1(t)    The New Markets Development Program credit permitted by KRS 141.434;
2(u)    The distilled spirits credit permitted by KRS 141.389;
3(v)    The angel investor credit permitted by KRS 141.396;
4(w) The film industry credit permitted by KRS 141.383 for applications approved
5on or after April 27, 2018, but before January 1, 2022;
6(x)    The inventory credit permitted by KRS 141.408;
7(y)    The renewable chemical production credit permitted by KRS 141.4231;[ and]
8(z)    The qualified broadband investment [tax ]credit permitted by KRS 141.391;
9and
10(aa) The public transportation contribution credit permitted by Section 2 of this
11Act;
12 (2)    After the application of the nonrefundable credits in subsection (1) of this section,
13the nonrefundable personal tax credits against the tax imposed by KRS 141.020
14shall be taken in the following order:
15(a)    The individual credits permitted by KRS 141.020(3);
16(b)    The credit permitted by KRS 141.066;
17(c)    The tuition credit permitted by KRS 141.069;
18(d)    The household and dependent care credit permitted by KRS 141.067;
19(e)    The income gap credit permitted by KRS 141.066; and
20(f)    The Education Opportunity Account Program [tax ]credit permitted by KRS
21141.522;
22 (3)    After the application of the nonrefundable credits provided for in subsection (2) of
23this section, the refundable credits against the tax imposed by KRS 141.020 shall be
24taken in the following order:
25(a)    The individual withholding tax credit permitted by KRS 141.350;
26(b)    The individual estimated tax payment credit permitted by KRS 141.305;
27(c)    The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and
  Page 6 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1171.397(1)(b);
2(d)    The film industry [tax ]credit permitted by KRS 141.383 for applications
3approved prior to April 27, 2018, or on or after January 1, 2022;
4(e)    The development area [tax ]credit permitted by KRS 141.398;
5(f)    The decontamination [tax ]credit permitted by KRS 141.419; and
6(g)    The pass-through entity tax credit permitted by KRS 141.209;
7 (4)    The nonrefundable credit permitted by KRS 141.0401 shall be applied against the
8tax imposed by KRS 141.040;
9 (5)    The following nonrefundable credits shall be applied against the sum of the tax
10imposed by KRS 141.040 after subtracting the credit provided for in subsection (4)
11of this section, and the tax imposed by KRS 141.0401 in the following order:
12(a)    The economic development credits computed under KRS 141.347, 141.381,
13141.384, 141.3841, 141.400, 141.403, 141.407, 141.415, 154.12-207, and
14154.12-2088;
15(b)    The qualified farming operation credit permitted by KRS 141.412;
16(c)    The certified rehabilitation credit permitted by KRS 171.397(1)(a);
17(d)    The health insurance credit permitted by KRS 141.062;
18(e)    The unemployment credit permitted by KRS 141.065;
19(f)    The recycling or composting equipment credit permitted by KRS 141.390;
20(g)    The coal conversion credit permitted by KRS 141.041;
21(h)    The enterprise zone credit permitted by KRS 154.45-090, for taxable periods
22ending prior to January 1, 2008;
23(i)    The [tax ]credit for cash contributions to investment funds permitted by KRS
24154.20-263 in effect prior to July 15, 2002, and the credit permitted by KRS
25154.20-258;
26(j)    The research facilities credit permitted by KRS 141.395;
27(k)    The employer High School Equivalency Diploma program incentive credit
  Page 7 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1permitted by KRS 151B.402;
2(l)    The voluntary environmental remediation credit permitted by KRS 141.418;
3(m) The biodiesel and renewable diesel credit permitted by KRS 141.423;
4(n)    The clean coal incentive credit permitted by KRS 141.428;
5(o)    The ethanol credit permitted by KRS 141.4242;
6(p)    The cellulosic ethanol credit permitted by KRS 141.4244;
7(q)    The energy efficiency credits permitted by KRS 141.436;
8(r)    The ENERGY STAR home or ENERGY STAR manufactured home credit
9permitted by KRS 141.437;
10(s)    The railroad maintenance and improvement credit permitted by KRS 141.385;
11(t)    The railroad expansion credit permitted by KRS 141.386;
12(u)    The Endow Kentucky credit permitted by KRS 141.438;
13(v)    The New Markets Development Program credit permitted by KRS 141.434;
14(w) The distilled spirits credit permitted by KRS 141.389;
15(x)    The film industry credit permitted by KRS 141.383 for applications approved
16on or after April 27, 2018, but before January 1, 2022;
17(y)    The inventory credit permitted by KRS 141.408;
18(z)    The renewable chemical production [tax ]credit permitted by KRS 141.4231;
19(aa) The Education Opportunity Account Program [tax ]credit permitted by KRS
20141.522;[ and]
21(ab) The qualified broadband investment [tax ]credit permitted by KRS 141.391;
22and
23(ac) The public transportation contribution credit permitted by Section 2 of this
24Act; and
25 (6)    After the application of the nonrefundable credits in subsection (5) of this section,
26the refundable credits shall be taken in the following order:
27(a)    The corporation estimated tax payment credit permitted by KRS 141.044;
  Page 8 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1(b)    The certified rehabilitation credit permitted by KRS 171.3961, 171.3963, and
2171.397(1)(b);
3(c)    The film industry tax credit permitted by KRS 141.383 for applications
4approved prior to April 27, 2018, or on or after January 1, 2022;
5(d)    The decontamination [tax ]credit permitted by KRS 141.419; and
6(e)    The pass-through entity tax credit permitted by KRS 141.209.
7Section 4. KRS 131.190 is amended to read as follows:
8 (1)    No present or former commissioner or employee of the department, present or
9former member of a county board of assessment appeals, present or former property
10valuation administrator or employee, present or former secretary or employee of the
11Finance and Administration Cabinet, former secretary or employee of the Revenue
12Cabinet, or any other person, shall intentionally and without authorization inspect
13or divulge any information acquired by him or her of the affairs of any person, or
14information regarding the tax schedules, returns, or reports required to be filed with
15the department or other proper officer, or any information produced by a hearing or
16investigation, insofar as the information may have to do with the affairs of the
17person's business.
18 (2)    The prohibition established by subsection (1) of this section shall not extend to:
19(a)    Information required in prosecutions for making false reports or returns of
20property for taxation, or any other infraction of the tax laws;
21(b)    Any matter properly entered upon any assessment record, or in any way made
22a matter of public record;
23(c)    Furnishing any taxpayer or his or her properly authorized agent with
24information respecting his or her own return;
25(d)    Testimony provided by the commissioner or any employee of the department
26in any court, or the introduction as evidence of returns or reports filed with the
27department, in an action for violation of state or federal tax laws or in any
  Page 9 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1action challenging state or federal tax laws;
2(e)    Providing an owner of unmined coal, oil or gas reserves, and other mineral or
3energy resources assessed under KRS 132.820, or owners of surface land
4under which the unmined minerals lie, factual information about the owner's
5property derived from third-party returns filed for that owner's property, under
6the provisions of KRS 132.820, that is used to determine the owner's
7assessment. This information shall be provided to the owner on a confidential
8basis, and the owner shall be subject to the penalties provided in KRS
9131.990(2). The third-party filer shall be given prior notice of any disclosure
10of information to the owner that was provided by the third-party filer;
11(f)    Providing to a third-party purchaser pursuant to an order entered in a
12foreclosure action filed in a court of competent jurisdiction, factual
13information related to the owner or lessee of coal, oil, gas reserves, or any
14other mineral resources assessed under KRS 132.820. The department may
15promulgate an administrative regulation establishing a fee schedule for the
16provision of the information described in this paragraph. Any fee imposed
17shall not exceed the greater of the actual cost of providing the information or
18ten dollars ($10);
19(g)    Providing information to a licensing agency, the Transportation Cabinet, or
20the Kentucky Supreme Court under KRS 131.1817;
21(h)    Statistics of gasoline and special fuels gallonage reported to the department
22under KRS 138.210 to 138.448;
23(i)    Providing any utility gross receipts license tax return information that is
24necessary to administer the provisions of KRS 160.613 to 160.617 to
25applicable school districts on a confidential basis;
26(j)    Providing documents, data, or other information to a third party pursuant to an
27order issued by a court of competent jurisdiction;
  Page 10 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1(k)    Publishing administrative writings on its official website in accordance with
2KRS 131.020(1)(b); or
3(l)    Providing information to the Legislative Research Commission under:
41.  KRS 139.519 for purposes of the sales and use tax refund on building
5materials used for disaster recovery;
62.  KRS 141.436 for purposes of the energy efficiency products credits;
73.  KRS 141.437 for purposes of the ENERGY STAR home and the
8ENERGY STAR manufactured home credits;
94.  KRS 141.383 for purposes of the film industry incentives;
105.  KRS 154.26-095 for purposes of the Kentucky industrial revitalization
11credit and the job assessment fees;
126.  KRS 141.068 for purposes of the Kentucky investment fund;
137.  KRS 141.396 for purposes of the angel investor credit;
148.  KRS 141.389 for purposes of the distilled spirits credit;
159.  KRS 141.408 for purposes of the inventory credit;
1610.        KRS 141.390 for purposes of the recycling and composting credits;
1711.        KRS 141.3841 for purposes of the selling farmer credit;
1812.        KRS 141.4231 for purposes of the renewable chemical production
19credit;
2013.        KRS 141.524 for purposes of the Education Opportunity Account
21Program credit;
2214.        KRS 141.398 for purposes of the development area credit;
2315.        KRS 139.516 for purposes of the sales and use tax exemptions for the
24commercial mining of cryptocurrency;
2516.        KRS 141.419 for purposes of the decontamination credit;
2617.        KRS 141.391 for purposes of the qualified broadband investment credit;
2718.        KRS 139.499 for purposes of the sales and use tax exemptions for a
  Page 11 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1qualified data center project;[ and]
219.        KRS 139.5325 for purposes of the sales and use tax incentive for a
3qualifying attraction; and
420.        Section 2 of this Act for purposes of the public transportation
5contribution credit.
6 (3)    The commissioner shall make available any information for official use only and on
7a confidential basis to the proper officer, agency, board or commission of this state,
8any Kentucky county, any Kentucky city, any other state, or the federal
9government, under reciprocal agreements whereby the department shall receive
10similar or useful information in return.
11 (4)    Access to and inspection of information received from the Internal Revenue Service
12is for department use only, and is restricted to tax administration purposes.
13Information received from the Internal Revenue Service shall not be made available
14to any other agency of state government, or any county, city, or other state, and
15shall not be inspected intentionally and without authorization by any present
16secretary or employee of the Finance and Administration Cabinet, commissioner or
17employee of the department, or any other person.
18 (5)    Statistics of crude oil as reported to the department under the crude oil excise tax
19requirements of KRS Chapter 137 and statistics of natural gas production as
20reported to the department under the natural resources severance tax requirements
21of KRS Chapter 143A may be made public by the department by release to the
22Energy and Environment Cabinet, Department for Natural Resources.
23 (6)    Notwithstanding any provision of law to the contrary, beginning with mine-map
24submissions for the 1989 tax year, the department may make public or divulge only
25those portions of mine maps submitted by taxpayers to the department pursuant to
26KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined-
27out parcel areas. These electronic maps shall not be relied upon to determine actual
  Page 12 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed
 UNOFFICIAL COPY  26 RS BR 858
1boundaries of mined-out parcel areas. Property boundaries contained in mine maps
2required under KRS Chapters 350 and 352 shall not be construed to constitute land
3surveying or boundary surveys as defined by KRS 322.010 and any administrative
4regulations promulgated thereto.
5Section 5. There is hereby appropriated General Fund moneys in the amount of
6 $30,000,000 in each fiscal year of the 2026-2028 fiscal biennium to the Kentucky Public
7 Transportation Development Fund established under Section 1 of this Act.
8Section 6.       Whereas public transportation provides environmental, economic,
9 and social equity domain benefits for communities in the Commonwealth, an emergency
10 is declared to exist, and this Act takes effect upon its passage and approval by the
11 Governor or upon its otherwise becoming a law.
  Page 13 of 13
 XXXX 3/3/2026 11:17 AM  Jacketed