The bill amends Arkansas Code 26-51-316(a) to expand the income tax exemption for certain payments made to taxpayers by the United States Department of Agriculture. Specifically, it adds an exemption for payments made under programs authorized by Division B, Title I, of the American Relief Act of 2025, while retaining existing exemptions for payments under the Market Facilitation Program and recovery rebates from the Department of the Treasury. The language "and" has been deleted from the previous list of exemptions to accommodate the new addition.

Additionally, the bill establishes that the new provisions will be effective for tax years beginning on or after January 1, 2025. This change aims to provide further financial relief to taxpayers receiving specific agricultural payments, thereby supporting the agricultural sector in Arkansas.

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