General Assembly resumes session; key bills filed including income tax reduction

General Assembly resumes session; key bills filed including income tax reduction

Economics
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Clark Welch Vice President of Economic Development | Greater Louisville Inc.

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The General Assembly has resumed its session after a brief hiatus in January. This week, legislators filed 200 bills, unveiling several priorities that align with the business community's goals for 2025. The legislative activities are being closely monitored by Policy Distilled and updates are available on X @GLIAdvocacy.

One of the significant legislative proposals is House Bill 1, which aims to reduce the income tax rate by half a percent to 3.5 percent. The intention behind this bill is to allow working Kentuckians to retain more of their earnings while enhancing competitiveness with neighboring states. This proposal builds upon previous reforms designed to bolster the economy and create a more competitive tax framework.

House Bill 87, introduced by Louisville legislator Emily Callaway in early January, addresses second chance licensing. It mandates public employers and licensing boards to establish protocols for responding to applicants who inquire about whether past criminal offenses would disqualify them from positions or licenses. Currently, there is no state guidance on handling such inquiries, often leading applicants or those involved in reskilling initiatives to incur costs for unattainable career paths. The bill is under review by the House Committee on Licensing, Occupations, and Administrative Regulations.

Another bill of note is House Bill 135, filed by Louisville legislator Jared Bauman also in early January. This legislation seeks to expand third-degree assault definitions to include attempts or actions causing physical injury to public transportation drivers during their employment duties. Protecting this workforce sector aligns with GLI's focus on crime reduction at both state and local levels. The bill is currently before the House Judiciary Committee.

In federal matters, President Trump announced plans over the weekend for imposing a 25% tariff on steel and aluminum as part of ongoing trade escalations. Further details are anticipated later this week.

GLI remains vigilant regarding federal changes, including recent executive orders, providing updates through its channels.

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