The bill amends Arkansas income tax law concerning the depreciation and expensing of property by adopting specific provisions from federal income tax law. It incorporates Title 26 U.S.C. 167 and 168(a)-(j) as they were effective on January 1, 2019, for property purchased in tax years starting on or after January 1, 2014. Additionally, it includes new provisions from Title 26 U.S.C. 168(k), effective January 1, 2024, for property purchased in tax years beginning on or after January 1, 2025, and Title 26 U.S.C. 179, effective January 1, 2022, for property purchased in tax years starting on or after that date.

Furthermore, the bill increases the amount allowed for the expensing of certain depreciable business assets to align with federal law. The effective date for these changes is set for tax years beginning on or after January 1, 2025. This alignment with federal standards aims to simplify the tax process for businesses and ensure consistency between state and federal tax regulations.

Statutes affected:
HB 1501: 26-51-428(a)