HB1018
To Create The Strong Families Act; And To Create An Income Tax Credit For Employers That Provide Paid Family And Medical Leave For Certain Employees.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1018, known as the 'Strong Families Act,' creates a state income tax credit for employers in Arkansas who provide paid family and medical leave to their employees. To qualify for the credit, employers must offer at least four weeks of paid leave for serious health conditions, the birth or adoption of a child, or caring for immediate family members with serious health conditions. The credit is valued at 25% of the wages paid to the employee during the leave, capped at $4,000 per qualified employee per tax year. Eligible employers must implement specific policies prohibiting interference or discrimination against employees exercising their leave rights. The credit is non-refundable and cannot exceed the total income tax liability of the employer for the tax year. The act applies to tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas employers who already provide or are willing to implement paid family leave, as they will receive a tax incentive to offset a portion of their payroll costs. Employees of these businesses also benefit from increased access to paid leave during life events such as the birth of a child or a serious medical issue, allowing for financial security while away from the workplace.
Who Might Suffer?
The primary group negatively impacted consists of the state government and taxpayers, as the implementation of this tax credit will reduce total state income tax revenue. Additionally, small businesses that lack the financial resources to provide paid leave, even with the tax credit, may experience a competitive disadvantage in the labor market compared to larger, better-funded companies that can afford to utilize the credit.
Get Notified
Receive an email when this bill's status changes.