This 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. The current law allows exemptions for payments made under the Market Facilitation Program and recovery rebates from the Department of the Treasury. The new language adds an additional exemption for payments made under programs authorized by the American Relief Act of 2025, thereby broadening the scope of eligible payments for tax exemption.

Furthermore, the bill specifies that the amendments will take effect for tax years beginning on or after January 1, 2025. This change aims to provide financial relief to taxpayers who receive specific federal payments, thereby supporting economic recovery and stability in the state.

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