The Arkansas Renter Refund Act establishes a new income tax credit for residential tenants who meet specific criteria. Under the provisions of the act, a taxpayer who rents their primary residence for the entire tax year, has a net income of less than $40,000, and is not claimed as a dependent on another taxpayer's income tax return is eligible for a credit of $500 against their income tax. Additionally, the credit amount that can be claimed cannot exceed the taxpayer's total income tax due for the year.

This act will be codified as Section 26-51-518 of the Arkansas Code and is set to take effect for tax years beginning on or after January 1, 2025. The act aims to provide financial relief to low-income renters in Arkansas by allowing them to benefit from this tax credit, thereby supporting housing affordability in the state.