Department of Finance and Administration
Amended Legislative Impact Statement
Bill: HB1398
Bill Subtitle: TO AMEND PAISLEY'S LAW; AND TO AMEND THE STILLBORN CHILD INCOME
TAX CREDIT.
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Basic Change :
Sponsor: Rep. Eaves
Act 935 of 2021 created an individual income tax credit for a stillborn child, known as Paisley's Law.
Paisley's Law provides a credit against a taxpayer's individual income tax liability in the amount of $500
for a stillborn child for whom a certificate of birth resulting in stillbirth has been issued and who would
have been a dependent of the taxpayer during the taxable year. HB1398 amends Paisley's Law to:
 Increase the credit against the taxpayer's income tax liability from $500 to $1,500 for a stillborn
child; and
 Require that all manuals, forms, and other documents created by a state agency identify the tax
credit as "Paisley's Law."
HB1398 is effective for tax years beginning on or after January 1, 2023.
Revenue Impact :
FY2024 - $59,339 to $257,000 General Revenue Reduction
Taxpayer Impact :
The available tax credit under Paisley’s Law would be increased from $500 to $1,500.
Resources Required :
Computer programs, tax forms, and instructions will need to be updated. The Arkansas Integrated
Revenue System (AIRS) will require programming at an estimated cost of $8,000.
Time Required :
Adequate time is provided for implementation.
Procedural Changes :
Income Tax rules will be updated. Department employees and the tax community will need to be
educated. Individual Income Tax forms and instructions will need to be updated.
Other Comments :
None.
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3/30/2023 9:14 AM 1
 Department of Finance and Administration
Amended Legislative Impact Statement
Bill: HB1398
Bill Subtitle: TO AMEND PAISLEY'S LAW; AND TO AMEND THE STILLBORN CHILD INCOME
TAX CREDIT.
----------------------------------------------------------------------------------------------------- ----------------------------------
Legal Analysis :
None.
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