This bill amends the Arkansas income tax deduction for depreciation and the expensing of property by adopting federal income tax law as it pertains to these deductions. Specifically, it updates the reference to Title 26 U.S.C. 167 and 168, changing the effective date for computing Arkansas income tax liability from January 1, 2019, to January 1, 2025. This means that property purchased in tax years beginning on or after January 1, 2025, will be subject to the updated federal guidelines for depreciation and expensing.

Additionally, the bill establishes that the changes will take effect for tax years beginning on or after January 1, 2025. This aligns Arkansas tax law with federal standards, potentially simplifying the tax process for individuals and businesses regarding property depreciation and expensing.

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