Bill > HB1665

This bill amends Arkansas law concerning the insurance premium tax by eliminating the existing tax credit that insurers could previously claim for noncommissioned salaries and wages of their Arkansas employees. Specifically, the bill removes several provisions that allowed life, accident, and health insurers to offset their premium tax liability based on employee salaries, including graduated reductions of the credit from 80% to 50% over recent years and an annual credit limit of $18 million. The bill maintains other existing provisions related to premium tax payments, including the requirement to pay a 2.5% tax rate on net premiums and preserving a separate tax credit for Arkansas historic rehabilitation income tax credits. Insurers will now be required to pay the full premium tax without the previous employee-related offset, which could potentially increase tax revenues for the state. The bill retains provisions for quarterly estimated tax payments and annual reconciliation, and continues to allow insurers to carry forward unused historic rehabilitation tax credits for up to five consecutive years.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=hb1665&ddBienniumSession=2025%2F2025R