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Bill

HB 802

AN ACT relating to an individual income tax credit for tolls.

2025 Regular Session

Kentucky bill creates income tax credit for toll road expenses paid by residents, offsetting transportation costs through state tax liability reduction.

to Appropriations & Revenue (H)
#motorvehicles #taxation #income--individual
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Bill Summary · HB 802

Legislative bill overview

HB 802 would establish a state income tax credit for Kentucky residents who pay tolls on roadways. The bill would allow taxpayers to claim a credit against their state income tax liability based on toll expenses incurred during the tax year. This represents a direct financial offset mechanism to reduce the tax burden on individuals who use toll roads.

Why is this important

Toll roads are increasingly common infrastructure financing tools, and this credit would effectively subsidize toll road usage by allowing drivers to recover costs through tax benefits. This could impact state revenue while also addressing concerns about regressive toll burdens on lower-income drivers who may have limited alternative routes. The policy reflects broader questions about how transportation infrastructure should be funded and who bears those costs.

Potential points of contention

  • Revenue impact: The tax credit would reduce state General Fund revenues with unclear fiscal implications, particularly if toll usage is widespread across the state
  • Fairness concerns: Tax credits may primarily benefit higher-income earners with greater tax liability to offset, potentially failing to help lower-income toll payers who owe little income tax
  • Toll road expansion incentives: The credit could inadvertently encourage more toll road development by making tolls more politically palatable to voters, raising questions about long-term infrastructure policy direction

Compiled from official sources — confirm details with the bill’s official record.

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