This bill amends the 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. sections 167 and 168, as they were effective on January 1, 2019, for property purchased in tax years starting on or after January 1, 2014. Additionally, it includes Title 26 U.S.C. section 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. section 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 potentially enhance their financial planning regarding asset depreciation and expensing.

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