This bill proposes an amendment to the Arkansas Income Tax Act of 1929, specifically by adding a new section that allows for a deduction of certain qualified business expenses. The new section, designated as 26-51-462, adopts the provisions of Title 26 U.S.C. 199A(a)-(h) as they are effective on January 1, 2025, for the purpose of calculating Arkansas income tax liability. This change aims to align state tax regulations with federal guidelines regarding deductions for qualified business income.

Additionally, the bill specifies that the new provisions will take effect for tax years beginning on or after January 1, 2025. This timeline allows businesses to prepare for the changes in tax deductions that will be available under the new law. Overall, the bill seeks to provide tax relief to qualifying businesses in Arkansas by enabling them to deduct certain expenses from their taxable income.