The bill amends Arkansas Code 26-51-316(a) to expand the income tax exemption for certain payments received by taxpayers from the United States Department of Agriculture. Specifically, it adds a new category of exempt payments under the American Relief Act of 2025, while retaining exemptions for payments made under the Market Facilitation Program and recovery rebates from the Department of the Treasury. The language that previously connected the first two categories with "and" has been deleted, and the new category is inserted as a third exemption.

Additionally, the bill establishes an effective date for these changes, stating that the new provisions will apply to tax years beginning on or after January 1, 2025. This ensures that the expanded exemptions will be in place for taxpayers in the upcoming tax years following the specified date.

Statutes affected:
SB 408: 26-51-316(a)
Act 696: 26-51-316(a)