This bill amends the Arkansas income tax deduction for depreciation and the expensing of property by adopting federal income tax law as outlined in Title 26 U.S.C. Sections 167 and 168. The amendment specifies that the federal provisions in effect as of January 1, 2025, will be used to compute Arkansas income tax liability for property purchased in tax years beginning on or after that date. This change updates the previous adoption of the federal law that was based on the provisions in effect as of January 1, 2019.

Additionally, the bill establishes an effective date for these changes, stating that the new provisions will apply to tax years starting on or after January 1, 2025. This ensures that taxpayers will follow the updated federal guidelines for depreciation and expensing of property in their Arkansas income tax calculations moving forward.

Statutes affected:
HB 1907: 26-51-428(a)