This bill amends the Arkansas income tax law to provide favorable tax treatment for employer contributions to healthcare sharing ministries and other medical cost-sharing programs. Specifically, it adds a new exclusion to the definition of "gross income" under the Income Tax Act of 1929, allowing contributions made by employers to their employees' healthcare sharing ministries to be excluded from taxable income. Additionally, the bill introduces a new section that permits employers to deduct these contributions when calculating their net income for tax purposes.

The effective date for these changes is set for tax years beginning on or after January 1, 2026. This legislation aims to encourage the use of healthcare sharing ministries and medical cost-sharing programs by providing tax incentives for employers who contribute to these alternative healthcare solutions.

Statutes affected:
Old version HB1698 V2 - 3-17-2025 11:49 AM: 26-51-404(b)
Old version HB1698 V3 - 3-31-2025 11:24 AM: 26-51-404(b)
Old version HB1698 Original - 3-6-2025 10:51 AM: 26-51-404(b)
HB 1698: 26-51-404(b)