HB1400
To Adopt The Federal Tax Credit For Employers Who Provide Paid Family And Medical Leave For Their Employees.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1400 proposes an amendment to Arkansas income tax law to incorporate the federal tax credit for employers who provide paid family and medical leave for their employees. By adopting Title 26 U.S.C. § 45S, the bill allows Arkansas employers to compute their state income tax liability by utilizing the standards set forth in the federal tax code as of January 1, 2022. The legislation applies to paid family and medical leave provided to employees on or after January 1, 2023. The act is intended to incentivize businesses to offer paid leave benefits to their workforce. The effective date for these tax provisions is for tax years beginning on or after January 1, 2023.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are Arkansas employers who provide paid family and medical leave to their employees, as they would be eligible for state income tax credits. Additionally, employees working for these businesses may benefit if the tax incentive encourages their employers to adopt or maintain paid leave policies that might not otherwise be offered.
Who Might Suffer?
The primary entity negatively impacted by this bill is the State of Arkansas, which would experience a decrease in state income tax revenue due to the newly provided tax credits. Taxpayers generally may also be indirectly affected by the potential reduction in the state's overall tax collection, which could impact the funding available for other public services.
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