This bill amends the law regarding the net operating loss (NOL) income tax deduction in Arkansas, primarily by increasing the carry-forward period for NOL deductions from ten years to twenty years. The legislative findings emphasize the need to modernize and simplify the tax code to enhance competitiveness, promote job creation, and ensure fairness for all taxpayers. The bill aligns Arkansas's NOL carry-forward provisions with federal standards and practices in other states, which often allow for longer carry-forward periods.

Specific amendments include changes to various sections of the Arkansas Code, which now stipulate that taxpayers can carry forward their NOL deductions for a total of twenty years or until the loss is exhausted. This change applies to different categories of taxpayers, including steel manufacturers and qualified medical companies. The effective date for these amendments is set for tax years beginning on or after January 1, 2025.

Statutes affected:
HB 1538: 15-4-2404(a), 26-51-427(1), 26-51-1203(a), 26-51-1213(a)