 |  | January 27, 2025
| 2025 legislative session
| Being almost a month into the new year, we are a week away from the legislature coming back from break and beginning to deliberate in earnest on hundreds of bills and issues that were brought up during last year’s interim. The November election did not change the party seat ratio in the House and Senate, we still have a republican supermajority with 80 of the 100 seats in the House and 31 of the 38 in the Senate. However, there will be some new faces this year, and we are excited to work with them to navigate some of the many issues facing the CPA profession.
While KyCPA advocates work hard to ensure your voice is heard in Frankfort and Washington, nothing influences a legislator more than hearing from a friend or constituent. Key Contacts are crucial to personalizing and localizing the political impact of state and federal legislation. If you have a relationship with a state or federal lawmaker, become a Key Contact and let us know how you can help us. Responsibilities of a Key Contact include:
- Contact legislators about key legislation impacting the CPA profession when requested by KyCPA
- Maintain and build relationships with your legislators
- Keep KyCPA in the loop about issues you’ve discussed with legislators
- Deliver KyCPA-PAC contributions as requested by the PAC board of trustees
| CPA Day at the Capitol
| February 12 from 9-11:30 a.m. Kentucky Capitol Building in Frankfort
Free for KyCPA members
Each Session, the Society hosts CPA Day at the Kentucky Capitol in Frankfort. This event provides KyCPA members with the opportunity to meet, speak with, and hear from key policymakers impacting Kentucky’s business community and accounting professionals. You are welcome to register for CPA Day at the Capitol and spend the morning with fellow CPAs interested in impacting Kentucky’s policy process.
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Pictured above are those that attended CPA Day at the Capitol during the 2024 legislative session.
| Bills to keep an eye on
| With the start of the 2025 Session’s fourth week, hundreds more bills were introduced but only a handful saw forward movement in the legislative process to either committee assignments or floor votes. As we are in a “short session”, the budget is not on the table. However, many other bills related to policy and proposals from interim task forces over the past year have been introduced. With one week left until the legislators come back from their break, we’ve tried to cut through the noise of so many pieces of legislation, by highlighting bills and issues that would be of interest to KyCPA. Tracking is below.
House Bill (HB)1: Amend KRS 141.020 to reduce the individual income tax rate from 4 percent to 3.5 percent for taxable years beginning on or after January 1, 2026.
Last action: 1/10/2025 - to Appropriations & Revenue (S)
HB103: Amend KRS 335B.010 to define terms related to licensing and public employment qualifications; amend KRS 335B.020 to narrow the class of offenses to which the chapter applies, prohibit disqualifying individuals from pursing a professional license solely due to a finding that the applicant lacks good character, add consideration of the age of the person at the time the crime was committed, the evidence relevant to the circumstances of the crime, and evidence of rehabilitation in making licensure decisions; amend KRS 335B.030 to require that before a hiring or licensing authority denies an individual a professional license due to a prior conviction of a crime to notify the individual in writing of the specific offense that is the basis of the denial, the reasons the offense was determined to directly relate to the duties and responsibilities of the occupation and pose a reasonable threat to public safety, and that the applicant has a right to submit additional information within 30 days which the licensing authority is required to consider; require that upon a hiring or licensing authority denying an individual a professional license due to a prior conviction of a crime to notify the individual in writing of the specific offense that is the basis of the denial and the reasons the offense was determined to directly relate to the duties and responsibilities of the occupation and pose a reasonable threat to public safety; create new sections of KRS Chapter 335B to allow a person with a prior conviction of a crime to request an initial determination regarding whether a prior conviction of crime would disqualify the individual from licensure and require that this initial determination is binding on the hiring or licensing authority; require each hiring or licensing authority to publish information on its website pertaining to applicants with a prior conviction of a crime; require each hiring or licensing authority that is authorized to consider the criminal conviction of an applicant to provide an annual report to the Legislative Research Commission; amend various sections of KRS Chapters 309, 317A, and 327 to conform; EFFECTIVE January 1, 2026. Last action: 1/8/2025 - to Committees on Committees (H)
HB133: Create new sections of KRS Chapter 335B to allow universal recognition of occupational licenses and government certifications; include work experience as a basis for licensure or certification; explicitly include military personnel and their spouses; provide that the Act may be cited as the Universal Recognition of Occupational Licenses Act.
Last action: 1/8/2025 - to Committees on Committees (H)
Review all priority legislation KyCPA is tracking HERE.
| Tax season begins today!
| Tax filing season officially begin today, January 27, 2025. The U.S. Internal Revenue Service will start accepting and processing tax returns, and the IRS is anticipating it will receive over 140 million individual tax returns by the April 15, 2025, tax deadline.
Important Kentucky Tax Update:
The Kentucky Department of Revenue is implementing a new tax filing system, with a pause on certain tax filings from February 26 to March 14. Click here for additional information.
| Ongoing Corporate Transparency Act (CTA)
| Ongoing Corporate Transparency Act (CTA) Beneficial Ownership Information (BOI) changes continuing to evolve in courts around the country. Click here for additional information.
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| The KyCPA Political Action Committee (KyCPA-PAC) enables the CPA profession to elect business-minded legislators who support our position on issues related to tax, licensing, and client advisory services. By pooling our resources, together we can ensure the accounting profession continues to have a strong presence in Kentucky's legislative and regulatory activities.
For more information on KyCPA-PAC, what it is, why it is important, and how you can support, visit kycpa.org/advocacy/pac.
| Questions, concerns or comments
| Be sure to stay up to date on what's happening in Frankfort and Washington by reading the Society’s Legislative Updates and joining the discussions on Member Meetup.
Please do not hesitate to reach out regarding any questions, concerns or comments to Cash Cassady at 502-736-1366 or ccassady@kycpa.org.
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