Department of Finance and Administration
Legislative Impact Statement
Bill: SB261 Amendment Number: S1
Bill Subtitle: TO PROVIDE FOR AN INCOME TAX CREDIT FOR AN UNBORN CHILD; AND TO
PROVIDE THAT THE "DEPENDENT" INCLUDES AN UNBORN CHILD FOR PURPOSES OF THE
PERSONAL INCOME TAX CREDIT.
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Basic Change :
Sponsors: Sen. J. Payton and Rep. Haak
Senate Amendment No. 1 --- SB261-S1 (engrossed S2/21/23) amends the expanded definition of
"dependent" to include an "unborn child of a woman who, as of the last day of the tax year, was at least
12 weeks pregnant, as documented in the woman's medical records."
Original Bill --- SB261 allows a "child at any stage of development who is carried in the womb" to
qualify as a dependent for income tax purposes.
Currently, the definition of "dependent" is tied to the federal definition found in 26 U.S.C. § 152 as in
effect on January 1, 2005. SB261 adds without limitation a "child at any stage of development who is
carried in the womb" as a dependent for the purposes of computing state income tax.
SB261 is effective for tax years beginning on or after January 1, 2023.
Revenue Impact :
FY2024 - $650,000 General Revenue Reduction
Taxpayer Impact :
A taxpayer whose dependent was carried in the womb for at least 12 weeks during the taxable year
may claim a personal tax credit in the amount of $29.
Resources Required :
Computer programs, tax forms, and instructions will need to be updated. Programming for the
Arkansas Integrated Revenue System (AIRS) will be required at an estimated cost of $8,000.
Time Required :
Adequate time is provided for implementation.
Procedural Changes :
Department employees will need to be educated as well as the tax community.
Other Comments :
None.
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 Department of Finance and Administration
Legislative Impact Statement
Bill: SB261 Amendment Number: S1
Bill Subtitle: TO PROVIDE FOR AN INCOME TAX CREDIT FOR AN UNBORN CHILD; AND TO
PROVIDE THAT THE "DEPENDENT" INCLUDES AN UNBORN CHILD FOR PURPOSES OF THE
PERSONAL INCOME TAX CREDIT.
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Legal Analysis :
None.
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Statutes affected:
Old version SB261 Original - 2-14-2023 09:17 AM: 26-51-501(a)
Old version SB261 V2 - 2-21-2023 09:31 AM: 26-51-501(a)
SB 261: 26-51-501(a)