Legislators on the Appropriations and Revenue Committee heard more testimony on Wednesday advocating for a permanent fix to impacted Tax Increment Financing (TIF) districts.

The Kentucky League of Cities has been advocating for a permanent fix to affected TIF districts from the reduction in the income tax rate since 2022.

Brett Antle, a partner at Commonwealth Economics, testified in favor of a permanent solution as the legislature moves to do away with state income taxes.

House Budget Chairman Jason Petrie, R-Elkton, wants to look at all “the factors” as the General Assembly searches for a “more permanent solution,” which might not be the modified new revenues formula the state has used since 2022 as a temporary solution.

Sen. David Givens, R-Greensburg, who sponsored legislation in the 2024 session making the current TIF fix permanent, said he would be seeking data on how current TIFs in the state are performing.

“What this all boils down to is promises made should be kept,” Sen. Gary Boswell, R-Owensboro, said.

Kentucky is currently operating under a two-year TIF fix as part of the state budget, which expires in 2026.

The KLC Board of Directors voted in June to seek a permanent TIF fix in the upcoming 2025 legislative session.