The proposed bill aims to create an income tax exemption for certain individuals based on their age and income level. It specifically targets senior citizens who are at least 65 years old and have an annual gross income that does not exceed $25,000. The bill includes legislative findings that highlight the financial challenges faced by senior citizens, particularly the rising costs of living and the fact that many are on fixed incomes, often below $1,600 per month.

To implement this exemption, the bill amends the Arkansas Code Title 26, Chapter 51, Subchapter 3, by adding a new section that outlines the criteria for eligibility. Additionally, it establishes that the exemption will take effect for tax years beginning on or after January 1, 2026. This legislation seeks to provide financial relief to eligible senior citizens in Arkansas, acknowledging their unique economic circumstances.