The bill amends the law regarding the insurance premium tax in Arkansas by repealing the credit previously allowed against the insurance premium tax based on the salaries and wages of the insurer's employees. Specifically, it removes provisions that permitted authorized life or accident and health insurers to apply for a credit for noncommissioned salaries and wages paid to Arkansas employees in connection with their insurance operations. The bill also eliminates the stipulations regarding the maximum offsets allowed against the premium tax for different tax years and the annual credit cap of eighteen million dollars.

Additionally, the bill introduces new language that allows for a premium tax credit related to the Arkansas historic rehabilitation income tax credit, which can be used to offset the premium tax imposed. The amount of this credit that can be claimed in a tax year is limited to the premium tax due, and any unused credit can be carried forward for up to five consecutive taxable years. The Insurance Commissioner is tasked with promulgating rules to implement this new section.

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)