Bill > HB1540

This bill amends Arkansas tax law by repealing the existing tax deduction for caring for a totally and permanently disabled child and increasing the tax credit for supporting an individual with a developmental disability. Specifically, the bill increases the tax credit from $500 to $1,000 for taxpayers maintaining and supporting an individual with a developmental disability in their home. The bill updates the definition of "developmental disability" to reference the federal definition in 42 U.S.C. §15002 as of January 1, 2025, and expands the list of professionals who can certify the disability to include advanced practice registered nurses and physician assistants. The bill also broadens the definition of "individual" to include dependents, not just children. The changes will take effect for tax years beginning on or after January 1, 2025, providing taxpayers with a more substantial tax benefit for supporting individuals with developmental disabilities and modernizing the existing disability support tax provisions.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1540&ddBienniumSession=2025%2F2025R