This bill amends the Arkansas income tax law to provide an exemption for certain retirement benefits received by law enforcement officers and firefighters. Specifically, it adds new provisions to Arkansas Code 26-51-307, allowing retirement benefits from these professions to be exempt from income tax. The bill defines "law enforcement officer" and "firefighter," detailing the qualifications for each category, and includes specific language to clarify the types of retirement benefits that qualify for the exemption.

Additionally, the bill modifies existing tax exemption rules by allowing taxpayers who claim an exemption of less than $6,000 for military, law enforcement, or firefighter retirement benefits to also claim additional exemptions under certain conditions. The effective date for these changes is set for tax years beginning on or after January 1, 2026.

Statutes affected:
HB 1787: 26-51-307(e)