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Bill > HB1907

AR HB1907

AR HB1907
To Amend The Income Tax Deduction For Depreciation And The Expensing Of Property; And To Adopt Federal Income Tax Law Concerning The Deduction For Depreciation And The Expensing Of Property.

summary

Introduced
03/31/2025
In Committee
03/31/2025
Crossed Over
Passed
Dead
05/05/2025

Introduced Session

95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO AMEND THE INCOME TAX DEDUCTION FOR DEPRECIATION AND THE EXPENSING OF PROPERTY; TO ADOPT FEDERAL INCOME TAX LAW CONCERNING THE DEDUCTION FOR DEPRECIATION AND THE EXPENSING OF PROPERTY; AND FOR OTHER PURPOSES.

AI Summary

This bill amends Arkansas state income tax law regarding depreciation and property expensing by adopting updated federal tax code provisions (specifically Title 26 U.S.C. §§ 167 and 168) for tax years starting on or after January 1, 2025. Currently, the state follows federal depreciation rules as they existed on January 1, 2019, but this bill updates the reference to the federal tax code as it exists on January 1, 2025. The change means that businesses and individuals in Arkansas will be able to calculate their state income tax depreciation deductions using the most recent federal tax guidelines for property purchased in tax years beginning on or after January 1, 2025. This update ensures that Arkansas's tax code remains aligned with current federal tax treatment of depreciation and property expensing, which can provide potential tax benefits for taxpayers by allowing them to account for the declining value of business assets according to the latest federal standards.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Died in House Committee at Sine Die adjournment. (on 05/05/2025)

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