SB57
To Amend The Income Tax Credit For Certain Individual Political Contributions; And To Amend A Portion Of The Arkansas Code That Resulted From Initiated Act 1 Of 1996.
Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
Senate Bill 57 proposes an amendment to the Arkansas Code regarding state income tax credits for individual political contributions. The bill seeks to increase the maximum allowable tax credit for these contributions. Specifically, it proposes doubling the limit for individual tax returns from $50 to $100 and increasing the limit for joint tax returns from $100 to $200. This change applies to provisions originally established by Initiated Act 1 of 1996. The act is set to become effective for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas taxpayers who choose to make political contributions to candidates or political parties, as they will be eligible to claim a higher income tax credit. Additionally, political candidates and organizations may benefit from increased donation activity incentivized by the higher tax credit limits.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, which will experience a reduction in general revenue tax collections due to the increased value of the tax credits allowed. Taxpayers who do not contribute to political campaigns do not receive this benefit and may indirectly see a slightly larger share of the tax burden if the state budget requires offsetting revenue adjustments.
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