HB1015
To Amend The Individual Income Tax Laws; And To Create An Income Tax Credit For Dependent Children.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1015 proposes the creation of a new income tax credit in Arkansas for taxpayers with dependent children under the age of 18. The credit is set at $300 per qualifying child. Eligibility is restricted to individual taxpayers with a net income of up to $100,000 or joint filers with a net income of up to $200,000. The bill includes a provision for the credit amount to be adjusted annually based on the Consumer Price Index to account for cost-of-living changes. If the credit amount exceeds the taxpayer's total income tax liability, the excess will be refunded to the taxpayer. The legislation is intended to be effective for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas families with dependent children under the age of 18 who meet the specified income thresholds. Middle- and lower-income households within the $100,000 individual or $200,000 joint income limits will benefit from reduced tax burdens or potential tax refunds, providing increased financial resources for child-rearing expenses.
Who Might Suffer?
The state government of Arkansas would be negatively impacted in the sense that the bill would lead to a reduction in state general revenue due to the provision of a refundable tax credit. This reduction in tax collection may necessitate adjustments to the state budget, potentially impacting the funding available for other public services or programs.
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