This bill amends the Arkansas state income tax laws to introduce a new income tax credit specifically for certain baby supplies. The newly added section, designated as 26-51-517, defines "baby supplies" to include items such as diapers, baby formula, baby wipes, and prepackaged baby food. Taxpayers can claim a credit of up to $1,000 for expenses incurred on these supplies during the tax year in which the credit is claimed. Additionally, if the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded to the taxpayer.

The provisions of this act will take effect for tax years beginning on or after January 1, 2023. This initiative aims to provide financial relief to families with infants by reducing their tax burden related to essential baby supplies.