The proposed legislation aims to eliminate barriers for starting new businesses in Arkansas by amending the state's income tax law and creating the Arkansas Entrepreneur Extension Program. It introduces a new section to the Arkansas Code that allows certain newly formed businesses, defined as "eligible new businesses," to waive licensing fees, permit fees, and registration costs for the first five years of operation. To qualify, these businesses must be owned by individuals who have not owned a business in Arkansas in the past five years and must submit a waiver request at the time of registration. Additionally, the bill specifies that licensing entities cannot require fees from eligible business owners during this initial five-year period, although certain fees, such as those for background checks and examinations, are excluded from the waiver.

Furthermore, the bill establishes a tax deferral process for eligible new businesses, allowing them to defer payment of annual income taxes for up to five years. The Secretary of the Department of Finance and Administration is tasked with creating an application process for businesses to demonstrate their eligibility for this tax deferral under the Arkansas Entrepreneur Extension Program. The act is set to take effect on January 1, 2024, and includes provisions for the Secretary to promulgate necessary rules for implementation.