This bill amends the Arkansas Income Tax Act to enhance the tax treatment of employer contributions to healthcare sharing ministries and other medical cost-sharing programs. Specifically, it introduces a new provision that excludes these employer contributions from an employee's gross income, thereby not subjecting them to income tax. Additionally, the bill allows employers to deduct their contributions to these healthcare sharing ministries or medical cost-sharing programs when calculating their net income for tax purposes.

The new legal language added to the Arkansas Code includes a specific exclusion for employer contributions to healthcare sharing ministries and a provision for a tax deduction for these contributions. The effective date for these changes is set for tax years beginning on or after January 1, 2026.

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)