HB1862
To Amend The Income Tax Credit And The Income Tax Deduction Related To Maintaining, Supporting, And Caring For An Individual With A Disability.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1862 modifies Arkansas state income tax provisions related to the care of individuals with disabilities. The bill repeals the existing $500 income tax deduction currently allowed for taxpayers who maintain, support, and care for a child with a total and permanent disability. Concurrently, it increases the existing income tax credit for taxpayers who maintain, support, and care for an individual with a developmental disability from $500 to $750 per tax year. The bill also updates the legal definition of 'developmental disability' to align with federal standards found in 42 U.S.C. § 15002. These changes are slated to be effective for tax years beginning on or after January 1, 2025.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are taxpayers who provide care for individuals with developmental disabilities as defined by the bill, as they will receive a higher tax credit ($750 instead of $500). Families and caregivers of individuals with specific conditions such as autism, Down syndrome, intellectual disabilities, or other qualifying developmental impairments stand to benefit from this increased financial support.
Who Might Suffer?
The primary groups negatively impacted are taxpayers who currently claim the $500 income tax deduction for maintaining, supporting, and caring for a child with a 'total and permanent' disability who does not meet the specific criteria for a 'developmental disability.' These individuals will lose their existing tax deduction without receiving the benefit of the increased tax credit.
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