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Taxes & Budget

SB261

To Provide For An Income Tax Credit For An Unborn Child; And To Provide That The "dependent" Includes An Unborn Child For Purposes Of The Personal Income Tax Credit.

Failed

Last Action (May 1, 2023): Sine Die adjournment

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AI-Generated Summary

Senate Bill 261 amends the Arkansas income tax code to expand the definition of a "dependent" for personal income tax credit purposes. Specifically, it includes an unborn child of a woman who is at least twelve weeks pregnant as of the last day of the tax year. The pregnancy must be documented in the woman's medical records to qualify. This change allows individuals to claim a tax credit for an unborn child beginning with tax years starting on or after January 1, 2023.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are pregnant individuals and families in Arkansas who will be eligible for additional personal income tax credits based on the inclusion of their unborn child as a dependent, provided the pregnancy has reached at least twelve weeks by the end of the tax year.

Who Might Suffer?

The primary negative impact falls upon the state's budget, as the expanded definition of a dependent for tax credits will result in a decrease in total state income tax revenue. There is no specified group that is negatively impacted in a punitive sense, though administrative requirements for documenting pregnancy to claim the credit may impose a procedural burden on taxpayers and state tax authorities.

Read Full Bill on arkleg.state.ar.us