Bill > HB1015

This bill amends Arkansas income tax laws to create a new tax credit for dependent children, specifically allowing taxpayers to claim a $300 credit per qualifying child. A "qualifying child" is defined as a child under 18 years old, based on the federal tax code definition as of January 1, 2025. The tax credit is available for individual taxpayers with net income up to $100,000 and joint filers with net income up to $200,000. If both spouses file separately on the same return, the credit will be equally divided between them. The bill also includes a provision for annual cost-of-living adjustments to the credit amount, which will be calculated using the Consumer Price Index for All Urban Consumers published by the U.S. Department of Labor. If the tax credit exceeds the taxpayer's income tax liability, the excess amount will be refunded to the taxpayer. The new tax credit provision will take effect for tax years beginning on or after January 1, 2025.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1015&ddBienniumSession=2025%2F2025R