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The Kentucky Pro-Entrepreneurship & AI Workforce Act (KY-AI-Workforce)

Kentucky state companion to AI Workforce. Builds on KRS Ch. 271B and Ch. 275 (business entities), KRS Ch. 141 tax credits, the Cabinet for Economic Development, and the Kentucky Financial Services Regulatory Sandbox (KRS Ch. 292.890 et seq.).

THE KENTUCKY PRO-ENTREPRENEURSHIP & AI WORKFORCE ACT (KY-AI-WORKFORCE)

Vehicle: State passage. Kentucky General Assembly, regular session. Primary referral to House / Senate Economic Development / Appropriations and Revenue.

SECTION 1. SHORT TITLE

This Act may be cited as the “Kentucky Pro-Entrepreneurship & AI Workforce Act (KY-AI-Workforce).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The General Assembly finds that Kentucky business entities are governed by KRS Ch. 271B (business corporations) and Ch. 275 (LLCs); that KRS Ch. 141 provides income-tax credits; that the Cabinet for Economic Development operates under KRS Ch. 154; that Kentucky operates the Kentucky Business Investment Program under KRS Sec. 154.32-010 et seq.; and that Kentucky operates a financial-services regulatory sandbox under KRS Ch. 292.890 et seq. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH KENTUCKY LAW

Sec. 101. Definitions

  1. (a) “Qualified KY AI Workforce Training” means training toward a KYRMC or Federal FRAC in AI fields.
  2. (b) “Kentucky Innovation Sandbox” means a regulatory sandbox under Title III.
  3. (c) “Qualified small business” has the meaning given in KRS Ch. 271B or Ch. 275.

Sec. 102. Coordination with Existing Kentucky Law

  1. (a) Consistent with:
  • KRS Ch. 271B (business corporations); Ch. 275 (LLCs).
  • KRS Ch. 141 (income tax).
  • KRS Ch. 154 (Cabinet for Economic Development).
  • KRS Ch. 292.890 et seq. (financial-services regulatory sandbox).

TITLE II — KENTUCKY AI WORKFORCE TRAINING CREDIT

Sec. 201. Income-Tax Credit

  1. (a) A new credit is added to KRS Ch. 141 for qualified AI workforce training expenditures.
  2. (b) Coordinated with federal IRC Sec. 45BB; aggregate cap.
  3. (c) Credit equals 30% of eligible expenditures capped at $3,000 per employee / $150,000 per employer annually.
  4. (d) Kentucky Department of Revenue administers.

Sec. 202. Coordination with Cabinet for Economic Development

  1. (a) The Cabinet for Economic Development shall publish a list of qualifying KYRMC and Federal FRAC pathways.

TITLE III — KENTUCKY INNOVATION SANDBOX

Sec. 301. Expansion of the Regulatory Sandbox

  1. (a) KRS Ch. 292.890 et seq. is expanded to cover occupational-licensure activities under KRS Title XXVI in addition to financial-product innovation.
  2. (b) Twenty-four-month terms; renewable.

Sec. 302. Scope

  1. (a) Covers state-licensed activities in occupational-licensure boards under KRS Title XXVI and financial activities under KRS Ch. 286 and Ch. 292, to the extent not preempted.

TITLE IV — SMALL-BUSINESS FORMATION

Sec. 401. Expedited Formation Pathway

  1. (a) The Secretary of State shall implement an expedited formation pathway for KRS Ch. 271B and Ch. 275 entities within 24 hours.

Sec. 402. Single-Portal Licensing

  1. (a) The One Stop Business Portal shall operate a single-portal licensing system for state-level occupational licenses under KRS Title XXVI.

TITLE V — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 501. Severability

If any provision is held invalid, the invalidity shall not affect the remainder.

Sec. 502. Effective Date

This Act shall take effect July 1 of the year following enactment, except that Sec. 201 shall apply to tax years beginning on or after January 1 of the year following enactment.

Canonical federal version: AI Workforce. Other Kentucky bills: KY-ACSA, KY-MEWRA, KY-GT&P.