The proposed bill aims to amend the state income tax laws by introducing an income tax credit specifically for taxpayers aged sixty-five and older. This credit will be equal to the amount of property tax paid on their homestead during the tax year, with certain deductions for delinquent property tax payments and penalties. If the credit exceeds the taxpayer's income tax liability, the excess amount will be refunded to the taxpayer.

Additionally, the bill specifies that the new provisions will take effect for tax years beginning on or after January 1, 2025. The new section added to the Arkansas Code is designated as 26-51-518, which outlines the eligibility and calculation of the credit for homestead property tax paid by senior taxpayers.