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 sixty-five years old and have an annual gross income that does not exceed twenty-five thousand dollars ($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.

Additionally, the bill amends the Arkansas Code to introduce a new section that outlines the criteria for this tax exemption. It specifies that the exemption will be effective for tax years beginning on or after January 1, 2026. This initiative is intended to provide financial relief to eligible seniors, acknowledging their unique economic circumstances.