The bill amends various sections of the Arkansas Code to update the income tax deductions for moving and travel expenses. It authorizes the Department of Finance and Administration to set the per-mile amount for the income tax deduction for travel and transportation expenses through a proclamation. Specifically, it allows the Secretary of the Department to determine the per-mile deduction for vehicle miles, which cannot exceed one dollar ($1.00) per mile, and mandates that this amount be set in alignment with the most recent per-mile deduction established by the Internal Revenue Service.

Additionally, the bill modifies existing legal language by adding new provisions and removing outdated references. For instance, it replaces the previous method of determining travel expenses with a new proclamation-based approach and updates the definitions related to deductions for moving expenses. The bill also clarifies the conditions under which deductions for interest or intangible-related expenses paid to related parties can be claimed, ensuring compliance with state tax regulations. Overall, these changes aim to streamline the process for taxpayers while ensuring that deductions remain fiscally responsible.

Statutes affected:
SB 412: 10-3-309(b), 25-15-202(9), 26-51-403(b), 26-51-423(a), 26-51-423(c), 26-51-423(g), 26-51-437(b)
Act 614: 10-3-309(b), 25-15-202(9), 26-51-403(b), 26-51-423(a), 26-51-423(c), 26-51-423(g), 26-51-437(b)