The Arkansas Renter Refund Act is proposed legislation aimed at providing an income tax credit for certain residential tenants in the state. Under the new law, eligible taxpayers who rent their primary residence for the entire tax year, have a net income of less than $40,000, and are not claimed as dependents on another taxpayer's return can receive a tax credit of $500. This credit is designed to alleviate some of the financial burdens faced by renters and will be applicable against the income tax imposed by the state.

The bill also specifies that the amount of the tax credit that can be claimed cannot exceed the taxpayer's income tax due for that year. The provisions of this act will take effect for tax years beginning on or after January 1, 2025. The act is intended to support low-income renters and enhance housing affordability in Arkansas.