The bill amends Arkansas income tax law to adopt a federal tax credit for employers who provide paid family and medical leave to their employees. Specifically, it introduces a new section, 26-51-517, which aligns Arkansas tax regulations with Title 26 U.S.C. 45S, effective as of January 1, 2022. This allows employers who offer paid family and medical leave to claim a tax credit when calculating their Arkansas income tax liability, starting from January 1, 2023.

Additionally, the bill establishes an effective date for this new provision, ensuring that the tax credit applies to tax years beginning on or after January 1, 2023. This legislative change aims to incentivize employers to support their employees through paid leave, thereby promoting family and medical care in the workforce.