The 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 apply for a credit for noncommissioned salaries and wages paid to Arkansas employees in connection with their insurance operations. This repeal includes the elimination of specific percentages that limited the offset against the premium tax for various tax years and the annual cap on credits that could be claimed by insurers.

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. The amount of this new credit that can be claimed in a tax year is capped at the amount of 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)