This bill amends the state income tax laws to establish a new income tax credit specifically for taxpayers aged sixty-five and older. The credit is designed to equal the amount of property tax paid by these taxpayers on their homestead, with certain deductions for delinquent property taxes and penalties. If the credit amount surpasses the taxpayer's income tax liability, the excess will be refunded to the taxpayer.

The new section added to the Arkansas Code, designated as 26-51-518, outlines the eligibility criteria and calculation for the credit. This provision will take effect for tax years beginning on or after January 1, 2025.