The proposed bill aims to amend the state income tax laws by introducing a new income tax credit specifically for taxpayers aged sixty-five (65) and older. This credit will be equal to the amount of property tax paid on their homestead in the previous calendar year, with certain deductions for past due property taxes or penalties. If the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded to the taxpayer.

Additionally, the bill specifies that this new tax credit will be effective for tax years beginning on or after January 1, 2023. The legal language for this credit is added to Arkansas Code Title 26, Chapter 51, Subchapter 5, establishing a clear framework for eligible individuals to benefit from this financial relief.