This bill amends the law regarding the insurance premium tax in Arkansas by repealing the existing credit that insurers could apply against the premium tax based on the salaries and wages of their employees. Specifically, it removes provisions that allowed authorized life or accident and health insurers to claim a credit for noncommissioned salaries and wages paid to Arkansas employees in connection with their insurance operations. The bill also eliminates various stipulations related to the application and limits of this credit, including the maximum allowable offsets against the premium tax and the requirement for employees to be employed for a minimum of six months to qualify for the credit.

Additionally, the bill introduces a new provision allowing a premium tax credit for the amount of the Arkansas historic rehabilitation income tax credit, which can be used to offset the premium tax imposed. This new credit can be claimed up to the amount of premium tax due and any unused credit may be carried forward for up to five consecutive taxable years. The Insurance Commissioner is tasked with promulgating rules to implement this section, ensuring that the new provisions are effectively integrated into the existing tax framework.

Statutes affected:
Old version HB1665 V2 - 3-17-2025 11:36 AM: 26-57-604(a)
Old version HB1665 V3 - 4-2-2025 10:39 AM: 26-57-604(a)