The proposed bill, known as the "Access to Credit for Our Rural Economy (ACRE) Act," aims to amend the income tax laws in Arkansas by providing income tax deductions for certain financial institutions, specifically those involved in agricultural lending. The bill introduces a new section to the Arkansas Code that defines "qualified agricultural loans" and outlines the criteria for eligible lending institutions, which include national banking associations, state banks, and federal savings banks. It specifies that net interest income received from these qualified loans can be deducted when computing net income for tax purposes, thereby incentivizing financial institutions to support agricultural activities.

Additionally, the bill establishes that the provisions will take effect for tax years beginning on or after January 1, 2024. This legislative change is intended to enhance access to credit for rural economies by encouraging lending to agricultural businesses, ultimately supporting the agricultural sector's growth and sustainability in Arkansas.