The proposed bill, known as the "Access to Credit for Our Rural Economy (ACRE) Act," aims to amend Arkansas's income tax laws 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 "eligible lending institutions" and outlines the criteria for what constitutes a "qualified agricultural loan." These loans can be secured by personal or real property used for agricultural purposes and must meet specific conditions regarding lien interests and loan balances.

Additionally, the bill allows eligible lending institutions to deduct net interest income received from qualified agricultural loans when computing their net income for tax purposes. This deduction is intended to support rural economies by incentivizing financial institutions to provide loans for agricultural activities. The provisions of this act will take effect for tax years beginning on or after January 1, 2025.