Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas
 95th General Assembly                         A Bill
 Regular Session, 2025                                                              HOUSE BILL 1018
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 By: Representative A. Collins
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                                   For An Act To Be Entitled
                AN ACT TO CREATE THE STRONG FAMILIES ACT; TO CREATE
                AN INCOME TAX CREDIT FOR EMPLOYERS THAT PROVIDE PAID
                FAMILY AND MEDICAL LEAVE FOR CERTAIN EMPLOYEES; AND
                FOR OTHER PURPOSES.
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                                               Subtitle
                         TO CREATE THE STRONG FAMILIES ACT; AND
                         TO CREATE AN INCOME TAX CREDIT FOR
                         EMPLOYERS THAT PROVIDE PAID FAMILY AND
                         MEDICAL LEAVE FOR CERTAIN EMPLOYEES.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.      Arkansas Code Title 26, Chapter 51, is amended to add an
 additional subchapter to read as follows:
                             Subchapter 29 — Strong Families Act
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         26-51-2901.      Title.
         This subchapter shall be known and may be cited as the “Strong Families
 Act”.
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         26-51-2902.      Definitions.
         As used in this subchapter:
                (1)(A)     “Family and medical leave” means leave from work for:
                                 (i)    A serious health condition of the employee that
 prevents the employee from performing his or her essential job duties;
                                 (ii)   The birth or adoption of a child of the
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 employee; or
                               (iii)    The care of a child, spouse, or parent of the
 employee who has a serious health condition.
                        (B)   "Family and medical leave" does not include:
                               (i)     Earned sick leave;
                               (ii)    Earned annual leave; or
                               (iii)    Earned compensatory leave;
                (2)   “Qualified employee” means an employee who has been employed
 by the employer for at least twelve (12) consecutive months;
                (3)   "Serious health condition" means an illness, injury,
 impairment, or physical or mental condition that involves:
                        (A)   Inpatient care in a hospital, hospice, or residential
 medical care facility; or
                        (B)   Continuing treatment by a healthcare provider; and
                (4)   "Wages" means remuneration paid for personal services.
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          26-51-2903.    Strong families tax credit.
          (a)(1)(A)     An employer is allowed an income tax credit against the
 income tax imposed by this chapter in an amount equal to twenty-five percent
 (25%) of the amount of wages paid to a qualified employee during the period
 in which the qualified employee is on family and medical leave.
                        (B)   If a qualified employee is not paid on an hourly
 basis, the wages of the qualified employee shall be prorated to an hourly
 basis.
                (2)   The income tax credit allowed under this section shall not
 exceed four thousand dollars ($4,000) per qualified employee in a tax year.
          (b)   An employer is eligible for the income tax credit allowed under
 this section if the employer:
                (1)   Provides full-time qualified employees with at least four
 (4) weeks of paid family and medical leave over a twelve-month period;
                (2)   Provides part-time qualified employees with an amount of
 paid family and medical leave that bears the same ratio to four (4) weeks of
 family and medical leave as the number of hours the part-time qualified
 employee is expected to work in a week bears to the number of hours an
 equivalent full-time qualified employee is expected to work during a week;
                (3)   Provides family and medical leave on the smallest increment
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 of time permitted under the employer's payroll system; and
            (4)    Adopts a policy regarding family and medical leave that
 states that the employer will not:
                   (A)   Interfere with, restrain, or deny the exercise of or
 the attempt to exercise a right provided under the employer's family and
 medical leave policy; or
                   (B)   Discharge or in any other manner discriminate against
 an employee for opposing a practice prohibited by the policy.
      (c)   The maximum amount of time for which an employer may claim an
 income tax credit under this section for providing family and medical leave
 for a qualified employee is twelve (12) weeks in a twelve-month period.
      (d)   Family and medical leave may run concurrently with leave that is
 required under state or federal law, including without limitation the Family
 and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.
      (e)   The amount of the income tax credit allowed under this section
 that may be claimed by the taxpayer in a tax year shall not exceed the amount
 of income tax due by the taxpayer.
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      SECTION 2.    EFFECTIVE DATE.   Section 1 of this act is effective for tax
 years beginning on or after January 1, 2025.
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