Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas Call Item 1
2 93rd General Assembly A Bill
3 Third Extraordinary Session, 2022 HOUSE BILL 1001
4
5 By: Representatives A. Collins, Clowney, D. Ferguson, V. Flowers, D. Garner, Godfrey, Magie,
6 McCullough, Richardson, Scott, D. Whitaker
7 By: Senator C. Tucker
8
9 For An Act To Be Entitled
10 AN ACT TO AMEND ARKANSAS INCOME TAX LAW; TO ADOPT
11 FEDERAL LAW REGARDING DEPRECIATION AND EXPENSING OF
12 PROPERTY; TO CREATE AN INFLATIONARY RELIEF INCOME-TAX
13 CREDIT FOR CERTAIN TAXPAYERS; AND FOR OTHER PURPOSES.
14
15
16 Subtitle
17 TO AMEND ARKANSAS INCOME TAX LAW; TO
18 ADOPT FEDERAL LAW REGARDING DEPRECIATION
19 AND EXPENSING OF PROPERTY; AND TO CREATE
20 AN INFLATIONARY RELIEF INCOME-TAX CREDIT
21 FOR CERTAIN TAXPAYERS.
22
23
24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
25
26 SECTION 1. Arkansas Code 26-51-428(a), as in effect until the
27 contingency set out in Acts 2007, No. 613, 2, is met, and concerning the
28 income tax deduction for depreciation and expensing of property, is amended
29 to read as follows:
30 (a)(1) Title 26 U.S.C. 167 and 168(a)-(j), as in effect on January
31 1, 2019, and 26 U.S.C. 179, as in effect on January 1, 2009, regarding
32 depreciation and expensing of property, are adopted for the purpose of
33 computing Arkansas income tax liability for property purchased in tax years
34 beginning on or after January 1, 2014.
35 (2) Title 26 U.S.C. 179, as in effect on January 1, 2022, is
36 adopted for the purpose of computing Arkansas income tax liability for
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1 property purchased in tax years beginning on or after January 1, 2022.
2
3 SECTION 2. DO NOT CODIFY. TEMPORARY LANGUAGE. Inflationary relief
4 income-tax credit.
5 (a) As used in this section, resident means natural persons and
6 includes, for the purpose of determining liability for the tax imposed by the
7 Income Tax Act of 1929, 26-51-101 et seq., upon or with reference to the
8 income of any taxable year, any person domiciled in the State of Arkansas and
9 any other person who maintains a permanent place of abode within this state
10 and spends in the aggregate more than six (6) months of the taxable year
11 within this state.
12 (b)(1)(A) For the tax year beginning January 1, 2022, a resident
13 individual taxpayer who files an Arkansas full-year resident income-tax
14 return, other than a joint return, having net income up to one hundred
15 sixteen thousand dollars ($116,000) is allowed an income-tax credit against
16 the individual income tax imposed by the Income Tax Act of 1929, 26-51-101
17 et seq., in accordance with the following table:
18 From Less Than or Equal to Credit Amount
19 $1 $87,000 $300
20 $87,001 $88,000 $290
21 $88,001 $89,000 $280
22 $89,001 $90,000 $270
23 $90,001 $91,000 $260
24 $91,001 $92,000 $250
25 $92,001 $93,000 $240
26 $93,001 $94,000 $230
27 $94,001 $95,000 $220
28 $95,001 $96,000 $210
29 $96,001 $97,000 $200
30 $97,001 $98,000 $190
31 $98,001 $99,000 $180
32 $99,001 $100,000 $170
33 $100,001 $101,000 $160
34 $101,001 $102,000 $150
35 $102,001 $103,000 $140
36 $103,001 $104,000 $130
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1 $104,001 $105,000 $120
2 $105,001 $106,000 $110
3 $106,001 $107,000 $100
4 $107,001 $108,000 $90
5 $108,001 $109,000 $80
6 $109,001 $110,000 $70
7 $110,001 $111,000 $60
8 $111,001 $112,000 $50
9 $112,001 $113,000 $40
10 $113,001 $114,000 $30
11 $114,001 $115,000 $20
12 $115,001 $116,000 $10
13 $116,001 and up $0
14
15 (B) Spouses filing separately on the same income-tax return may each
16 claim one (1) credit under subdivision (b)(1)(A) of this section against the
17 tax on the return of each spouse.
18 (2)(A) For the tax year beginning January 1, 2022, resident
19 individual taxpayers who file a joint Arkansas full-year resident income-tax
20 return having net income up to two hundred forty-seven thousand dollars
21 ($247,000) are allowed an income tax credit against the individual income tax
22 imposed by the Income Tax Act of 1929, 26-51-101 et seq., in accordance
23 with the following table:
24 From Less Than or Equal to Credit Amount
25 $1 $174,000 $600
26 $174,001 $176,000 $590
27 $176,001 $178,000 $580
28 $178,001 $180,000 $570
29 $180,001 $182,000 $560
30 $182,001 $184,000 $550
31 $184,001 $186,000 $540
32 $186,001 $188,000 $530
33 $188,001 $190,000 $520
34 $190,001 $192,000 $510
35 $192,001 $194,000 $500
36 $194,001 $196,000 $490
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1 $196,001 $198,000 $480
2 $198,001 $200,000 $470
3 $200,001 $202,000 $460
4 $202,001 $203,000 $450
5 $203,001 $204,000 $440
6 $204,001 $205,000 $430
7 $205,001 $206,000 $420
8 $206,001 $207,000 $410
9 $207,001 $208,000 $400
10 $208,001 $209,000 $390
11 $209,001 $210,000 $380
12 $210,001 $211,000 $370
13 $211,001 $212,000 $360
14 $212,001 $213,000 $350
15 $213,001 $214,000 $340
16 $214,001 $215,000 $330
17 $215,001 $216,000 $320
18 $216,001 $217,000 $310
19 $217,001 $218,000 $300
20 $218,001 $219,000 $290
21 $219,001 $220,000 $280
22 $220,001 $221,000 $270
23 $221,001 $222,000 $260
24 $222,001 $223,000 $250
25 $223,001 $224,000 $240
26 $224,001 $225,000 $230
27 $225,001 $226,000 $220
28 $226,001 $227,000 $210
29 $227,001 $228,000 $200
30 $228,001 $229,000 $190
31 $229,001 $230,000 $180
32 $230,001 $231,000 $170
33 $231,001 $232,000 $160
34 $232,001 $233,000 $150
35 $233,001 $234,000 $140
36 $234,001 $235,000 $130
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1 $235,001 $236,000 $120
2 $236,001 $237,000 $110
3 $237,001 $238,000 $100
4 $238,001 $239,000 $90
5 $239,001 $240,000 $80
6 $240,001 $241,000 $70
7 $241,001 $242,000 $60
8 $242,001 $243,000 $50
9 $243,001 $244,000 $40
10 $244,001 $245,000 $30
11 $245,001 $246,000 $20
12 $246,001 $247,000 $10
13 $247,101 and up $0
14
15 (B) Spouses filing jointly on the same income-tax return
16 shall receive only one (1) credit under subdivision (b)(2)(A) of this section
17 against their aggregate tax.
18 (c) The credits allowed under subdivisions (b)(1) and (b)(2) of this
19 section cannot be claimed by a taxpayer:
20 (1) For any tax year other than the tax year beginning on
21 January 1, 2022; or
22 (2) Who files a nonresident return or a part-year resident
23 return.
24 (d) If the amount of the income tax credit allowed under this section
25 exceeds the taxpayer's income tax liability, the excess shall be refunded to
26 the taxpayer.
27
28 SECTION 3. EFFECTIVE DATE.
29 (a) Section 1 this act is effective for tax years beginning on or after
30 January 1, 2022.
31 (b) Section 2 this act is effective for the tax year beginning on
32 January 1, 2022.
33
34
35
36
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Statutes affected: HB 1001: 26-51-428(a)