{"data":{"id":"us-ky/krs-151b.402","jurisdiction":"us-ky","citation":"KRS 151B.402","heading":"Legislative findings relating to need for High School Equivalency","body":"Diplomas -- Incentives -- Administrative regulations -- Learning contracts --\nTuition discounts -- Tax credit for employers -- Annual report.\n(1) The General Assembly recogn izes the critical condition of the educational level of\nKentucky's adult population and seeks to stimulate the attendance at, and successful\ncompletion of, programs that provide a High School Equivalency Diploma.\nIncentives shall be provided to full -time employees who complete a High School\nEquivalency Diploma program within one (1) year and their employers.\n(2) The Office of Adult Education within the Department of Workforce Development\nin the Education and Labor Cabinet shall promulgate administrative reg ulations to\nestablish the operational procedures for this section. The administrative regulations\nshall include but not be limited to the criteria for:\n(a) A learning contract that includes the process to develop a learning contract\nbetween the student and  the adult education instructor with the employer's\nagreement to participate and support the student;\n(b) Attendance reports that validate that the student is enrolled and studying for\nthe High School Equivalency Diploma during the release time from work; and\n(c) Final reports that qualify the student for the tuition discounts under subsection\n(3)(a) of this section and that qualify the employer for tax credits under\nsubsection (4) of the section.\n(3) (a) An individual who has been out of secondary school f or at least three (3)\nyears, develops and successfully completes a learning contract that requires a\nminimum of five (5) hours per week to study for the High School Equivalency\nDiploma program, and successfully earns a High School Equivalency\nDiploma shall earn a tuition discount of two hundred fifty dollars ($250) per\nsemester for a maximum of four (4) semesters at one (1) of Kentucky's public\npostsecondary institutions.\n(b) The program shall work with the postsecondary institutions to establish\nnotification procedures for students who qualify for the tuition discount.\n(4) For taxable years beginning before January 1, 2028, an employer who assists an\nindividual to complete his or her learning contract under the provisions of this\nsection shall receive a sta te tax credit against the income tax imposed by KRS\n141.020 or 141.040, and the limited liability entity tax imposed by KRS 141.0401,\nwith credit ordering as provided in KRS 141.0205 for a portion of the released time\ngiven to the employee to study for the  tests. The application for the tax credit shall\nbe supported with attendance documentation provided by the Office of Adult\nEducation and calculated by multiplying fifty percent (50%) of the hours released\nfor study by the student's hourly salary, and not to exceed a credit of one thousand\ntwo hundred fifty dollars ($1250).\n(5) (a) By November 1, 2026, and each November 1 thereafter as long as the\nemployer High School Equivalency Diploma program incentive credit is\nclaimed under this section, the department shall report to the Legislative\nResearch Commission for referral to the Inter im Joint Committee on\nAppropriations and Revenue:\n1. The total number of returns claiming the credit for the taxable year;\n2. The total amount of credit claimed for the taxable year;\n3. By county, the total:\na. Number of employers participating in the High  School\nEquivalency Diploma program;\nb. Amount of High School Equivalency Diploma program incentive\ncredit claimed; and\nc. Number of full -time employees who complete the High School\nEquivalency Diploma program;\n4. By taxpayer:\na. The name and location of the taxpayer claiming the credit as listed\non the tax return;\nb. The total number of tax credits claimed for the taxable year;\nc. The total amount of credit claimed for the taxable year; and\nd. The number of individuals assisted with completion of the High\nSchool Equivalency Diploma for the taxable year; and\n5. a. In the case of taxpayers other than corporations, based on ranges\nof adjusted gross income of no larger than five thousand dollars\n($5,000) for the taxable year, the total amount of credit claimed\nand the total number of returns claiming this credit for each\nadjusted gross income range.\nb. In the case of corporations, based on ranges of net income of no\nlarger than fifty thousand dollars ($50,000) for the taxable year,\nthe total amount of credit cla imed and the total number of returns\nclaiming this credit for each net income range.\n(b) The Office of Adult Education shall assist by providing the department with\nthe information necessary to help fulfill the requirements under this\nsubsection.\n(c) The i nformation required to be reported under this subsection shall not be\nconsidered confidential taxpayer information and shall not be subject to KRS\nChapter 131 or any other provisions of the Kentucky Revised Statutes\nprohibiting disclosure or reporting of information.","path":["KRS Chapter 151B"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57946","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:47Z","sha256":"62df69c2b58cd09432aa77f04c83e1e4df060802bb3d61fbd359be502896a0cc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-151b.401","next":"us-ky/krs-151b.403"},"notice":"GroundRules: Original legal text. Not legal advice."}