This bill amends the law regarding the net operating loss income tax deduction in Arkansas, primarily by increasing the carry-forward period 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 among taxpayers. The bill recognizes that longer carry-forward provisions can benefit businesses, particularly those with cyclical income or those facing economic downturns, and aligns Arkansas's regulations more closely with federal standards and practices in other states.

Specific amendments include changes to various sections of the Arkansas Code, which extend the carry-forward period for net operating losses for different types of taxpayers, including steel manufacturers and qualified medical companies. The bill also establishes that these changes will take effect for tax years beginning on or after January 1, 2025. Overall, the legislation aims to provide greater flexibility for businesses in managing their tax liabilities related to net operating losses.

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