KRS 151B.402: Legislative findings relating to need for High School Equivalency

Diplomas -- Incentives -- Administrative regulations -- Learning contracts --

Tuition discounts -- Tax credit for employers -- Annual report.

(1) The General Assembly recogn izes the critical condition of the educational level of

Kentucky's adult population and seeks to stimulate the attendance at, and successful

completion of, programs that provide a High School Equivalency Diploma.

Incentives shall be provided to full -time employees who complete a High School

Equivalency Diploma program within one (1) year and their employers.

(2) The Office of Adult Education within the Department of Workforce Development

in the Education and Labor Cabinet shall promulgate administrative reg ulations to

establish the operational procedures for this section. The administrative regulations

shall include but not be limited to the criteria for:

(a) A learning contract that includes the process to develop a learning contract

between the student and the adult education instructor with the employer's

agreement to participate and support the student;

(b) Attendance reports that validate that the student is enrolled and studying for

the High School Equivalency Diploma during the release time from work; and

(c) Final reports that qualify the student for the tuition discounts under subsection

(3)(a) of this section and that qualify the employer for tax credits under

subsection (4) of the section.

(3) (a) An individual who has been out of secondary school f or at least three (3)

years, develops and successfully completes a learning contract that requires a

minimum of five (5) hours per week to study for the High School Equivalency

Diploma program, and successfully earns a High School Equivalency

Diploma shall earn a tuition discount of two hundred fifty dollars ($250) per

semester for a maximum of four (4) semesters at one (1) of Kentucky's public

postsecondary institutions.

(b) The program shall work with the postsecondary institutions to establish

notification procedures for students who qualify for the tuition discount.

(4) For taxable years beginning before January 1, 2028, an employer who assists an

individual to complete his or her learning contract under the provisions of this

section shall receive a sta te tax credit against the income tax imposed by KRS

141.020 or 141.040, and the limited liability entity tax imposed by KRS 141.0401,

with credit ordering as provided in KRS 141.0205 for a portion of the released time

given to the employee to study for the tests. The application for the tax credit shall

be supported with attendance documentation provided by the Office of Adult

Education and calculated by multiplying fifty percent (50%) of the hours released

for study by the student's hourly salary, and not to exceed a credit of one thousand

two hundred fifty dollars ($1250).

(5) (a) By November 1, 2026, and each November 1 thereafter as long as the

employer High School Equivalency Diploma program incentive credit is

claimed under this section, the department shall report to the Legislative

Research Commission for referral to the Inter im Joint Committee on

Appropriations and Revenue:

1. The total number of returns claiming the credit for the taxable year;

2. The total amount of credit claimed for the taxable year;

3. By county, the total:

a. Number of employers participating in the High School

Equivalency Diploma program;

b. Amount of High School Equivalency Diploma program incentive

credit claimed; and

c. Number of full -time employees who complete the High School

Equivalency Diploma program;

4. By taxpayer:

a. The name and location of the taxpayer claiming the credit as listed

on the tax return;

b. The total number of tax credits claimed for the taxable year;

c. The total amount of credit claimed for the taxable year; and

d. The number of individuals assisted with completion of the High

School Equivalency Diploma for the taxable year; and

5. a. In the case of taxpayers other than corporations, based on ranges

of adjusted gross income of no larger than five thousand dollars

($5,000) for the taxable year, the total amount of credit claimed

and the total number of returns claiming this credit for each

adjusted gross income range.

b. In the case of corporations, based on ranges of net income of no

larger than fifty thousand dollars ($50,000) for the taxable year,

the total amount of credit cla imed and the total number of returns

claiming this credit for each net income range.

(b) The Office of Adult Education shall assist by providing the department with

the information necessary to help fulfill the requirements under this

subsection.

(c) The i nformation required to be reported under this subsection shall not be

considered confidential taxpayer information and shall not be subject to KRS

Chapter 131 or any other provisions of the Kentucky Revised Statutes

prohibiting disclosure or reporting of information.