This bill cuts the individual income tax rate from 4.0% to 3.5% beginning January 1, 2026, letting Kentucky families and job creators keep more of what they earn. CPAC strongly supports broad-based income tax reductions and supported this bill. The Senate passed this bill on 2025-02-04 by a vote of 34-3. The House passed this bill on 2025-01-09 by a vote of 90-7. The bill later became law.