Kentucky provides several categories of credits that may reduce the amount of tax owed or increase a taxpayer's refund. Depending on the credit, additional information, supporting documentation, or state-issued forms may be required.
Education Credit
Use this section to enter any qualifying Kentucky education credits.
For more information, please see this article.
Business Incentive and Other Tax Credits
Kentucky has a variety of different business incentive credits available. For more information, see this article.
Credit for Taxes Paid to Another State
Use this section if income was taxed by both Kentucky and another state and the taxpayer may qualify for a credit for taxes paid to the other state.
Refundable Certified Rehabilitation Credit
The credit is for completing a certified rehabilitation to a certified historic structure which is located:
- within the jurisdiction of a consolidated local government or urban-county government; and
- within one-half (1/2) mile of a tax increment financing that has received at least preliminary approval.
For more information, see Kentucky website.
Refundable Development Area Tax Credit
A refundable credit for approved development projects located in designated development areas.
Refundable Decontamination Tax Credit
A refundable credit for qualified environmental cleanup and decontamination activities.
Refundable Pass-Through Entity Tax Credit
A refundable credit passed through from a partnership, S corporation, or other pass-through entity that elected to pay Kentucky tax at the entity level. For more information, see this article.
Kentucky Education Credit:
Kentucky offers their own version of the American Opportunity and Lifetime Learning Credits. You can review the full qualifications in this article.
Child and dependent care:
Kentucky residents may claim the non-refundable tax credit for household and dependent care services necessary for employment. For more information, please see the instruction booklet.
Program Entry
- State
- Edit Kentucky using the three dots
- Credits
Notes
- Some credits require additional forms, schedules, certificates, or other supporting documentation.
- Refundable credits may increase a taxpayer's refund even if no tax is owed.
- Nonrefundable credits can reduce tax liability but generally cannot reduce the tax below zero.