From the Office of Sen Scott Madon
After a brief, constitutionally required recess, the Kentucky General Assembly is back in session and hard at work. One of our first major accomplishments was passing House Bill (HB) 1, which will lower Kentucky’s income tax from 4 percent to 3.5 percent starting in January 2026. This is part of a thoughtful and responsible plan established by HB 8 in 2022 to gradually phase out the state income tax.
Lowering the income tax is a priority for Republicans, but we know it has to be done the right way. That means measured, responsible steps that protect taxpayers, ensure fiscal stability, and maintain essential government services. Since implementing these policies, Kentucky taxpayers have already saved an estimated $1.8 billion, and this latest cut will provide an additional $718 million in annual savings. That’s real money going back into the pockets of hardworking Kentuckians, allowing families to spend, save, and invest as they see fit.
I was proud to cast my first vote on the Senate floor with this tax cut, and I will continue supporting policies that help keep Kentucky growing and thriving.
This week, I filed a couple of bills that I am sponsoring this session. Senate Bill (SB) 89 and SB 104. SB 89 updates Kentucky’s water regulations by refining the definition of “waters of the Commonwealth” and clarifying statutory definitions. It also establishes a clear process for calculating additional bond amounts for permits requiring long-term water treatment. These changes aim to provide regulatory certainty while ensuring responsible environmental management across the state.
SB 104 enhances the Kentucky’s Deferred Compensation program by authorizing self-directed brokerage accounts (SDBAs), giving participants more investment choices while ensuring compliance with federal regulations. It also strengthens fiduciary protections, allowing the board to obtain liability insurance and clarifying that trustees are not liable for individual investment decisions. These updates provide greater flexibility and safeguards for public employees planning for retirement.
It’s a privilege to serve you in Frankfort. If you have questions or ideas, feel free to contact my office at (502)-564-8100 or email me at Scott.Madon@kylegislature.gov.
We’ll be back next week to continue our work for the 2025 Regular Session.
Sen. Scott Madon, R-Pineville, represents the 29th Senate District, which includes Bell, Floyd, Harlan, Knott, and Letcher Counties.