Arkansas 2025 Regular Session

Arkansas House Bill HB1015

Introduced
11/20/24  
Refer
1/13/25  

Caption

To Amend The Individual Income Tax Laws; And To Create An Income Tax Credit For Dependent Children.

Notes

Overall, HB1015 reflects an effort to provide direct financial support to families with children, advocating for adjustments in state tax policy to enhance family welfare. If enacted, it would signify a strategic shift in addressing the financial needs of families to ensure better economic health and stability within the community.

Impact

The introduction of HB1015 is expected to have a significant impact on state tax laws by creating a new category of tax credits. This bill is designed to adjust annually based on the cost of living, which suggests that the state intends to maintain the relevance of this credit amid inflation or rising living costs. If passed, the measure would serve to alleviate the income tax burden on lower and moderate-income families, allowing them to retain more of their income for essential expenses and investments in their children's welfare.

Summary

House Bill 1015 aims to amend Arkansas's individual income tax laws by introducing a new tax credit specifically for taxpayers with dependent children. The credit is proposed to provide financial relief of $300 for each qualifying child under the age of 18, targeting taxpayers with a net income threshold of up to $100,000 for individuals and $200,000 for joint filers. This initiative seeks to enhance financial support for families and individuals with children, thus acknowledging the economic pressures faced by taxpayers.

Contention

However, there may be points of contention, as discussions surrounding the bill could focus on its fiscal implications on state revenues. Critics may argue that while supporting families is vital, the reduction in tax revenue could hinder state funding for essential services such as education and infrastructure. The bill's reliance on the Consumer Price Index for adjustments could also be debated, especially regarding its predictability and adequacy for capturing real economic conditions affecting families.

Companion Bills

No companion bills found.

Previously Filed As

AR SB352

To Create Income Tax Incentives For Employer-based Dependent Care Assistance; And To Create An Income Tax Credit For Employer Payments Related To Dependent Care Assistance.

AR HB1003

To Create Income Tax Credits For Beginning Farmers And Owners Of Agricultural Assets.

AR SB8

To Reduce The Income Tax Rates Applicable To Individuals, Trusts, Estates, And Corporations; To Create An Inflationary Relief Income Tax Credit For Certain Taxpayers; And To Declare An Emergency.

AR HB1815

To Create An Income Tax Credit For Family Caregivers.

AR HB1398

To Amend Paisley's Law; And To Amend The Stillborn Child Income Tax Credit.

AR HB1779

To Amend The Wood Energy Products And Forest Maintenance Income Tax Credit; And To Allow An Income Tax Credit For Wood Energy Products And Forest Maintenance Expansion Projects.

AR HB1382

To Create The Reboot Pilot Program; And To Create An Income Tax Credit For Businesses That Hire Certain Former Offenders.

AR HB1421

To Create An Income Tax Credit For Contributions To Certain Rural Hospital Organizations; And To Create The Helping Enhance Access To Rural Treatment (heart) Act.

AR HB1680

To Create The Arkansas Private Lands Conservation Income Tax Credit Act.

AR HB1158

To Create The Early Childhood Education Workforce Quality Incentive Act; And To Create Income Tax Credits For Certain Early Childhood Education Workers And For Eligible Business Childcare Expenses.

Similar Bills

No similar bills found.