The bill amends the apportionment of business income for income tax purposes in Arkansas by repealing the "throwback rule." It modifies the criteria for determining if a taxpayer is taxable in another state by removing the requirement that the taxpayer must have activities in that state exceeding those protected by federal law. Additionally, the bill clarifies the conditions under which sales of tangible personal property are considered to occur within the state, specifically eliminating certain conditions related to sales to the United States government and the taxpayer's tax status in the purchaser's state.

Furthermore, the bill establishes an effective date for these changes, stating that the amendments will apply to tax years beginning on or after January 1, 2023. This legislative change aims to streamline the tax process for businesses operating across state lines and to clarify the rules governing the apportionment of income for tax purposes.