The bill amends the Arkansas Corporate Franchise Tax Act of 1979 by reducing the minimum annual franchise tax for certain corporations from $150 to $100. This change aims to alleviate the financial burden on smaller corporations, making it more manageable for them to comply with tax obligations.

Additionally, the bill specifies that the new minimum franchise tax rate will take effect for tax years beginning on or after January 1, 2026. This timeline allows corporations to prepare for the change in tax liability.

Statutes affected:
SB 256: 26-54-104(a)