HB1438
To Create An Income Tax Credit For Taxpayers Sixty-five And Older In An Amount Equal To The Taxpayer's Property Tax Payment On A Homestead.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1438 proposes an amendment to Arkansas income tax laws to provide a refundable income tax credit for residents aged 65 and older. The credit amount is equal to the real property taxes paid on the taxpayer's homestead during the tax year, excluding any delinquent taxes or related penalties. Because the credit is refundable, any amount exceeding the taxpayer's total income tax liability will be paid out 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 taxpayers who are 65 years of age or older and own their own homes. This group would benefit financially through a reduction in their state income tax burden or through a direct refund if their credit exceeds their tax liability, effectively offsetting the cost of their homestead property taxes.
Who Might Suffer?
The primary entity negatively impacted is the State of Arkansas, specifically its budget and revenue collection. By creating a refundable tax credit, the state will experience a reduction in general revenue funds that would otherwise be available for state appropriations and public services.
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