Arkansas 2025 Regular Session

Arkansas House Bill HB1216 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	JLL100 01/23/2025 2:48:18 PM JLL100
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1216 3
6	6	4
7	7	By: Representative Long 5
8	8	6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO CREATE THE FREE MARKET ZONES ACT; TO 9
12	12	PROVIDE TAX INCENTIVES FOR BUSINESS ENTITIES LOCATED 10
13	13	IN AN OPPORTUNITY ZONE; TO EXEMPT A BUSINESS LOCATED 11
14	14	IN AN OPPORTUNITY ZONE FROM THE INCOME TAX, THE 12
15	15	CORPORATE FRANCHISE TAX, AND THE ELECTIVE PASS -13
16	16	THROUGH ENTITY TAX; AND FOR OTHER PURPOSES. 14
17	17	15
18	18	16
19	19	Subtitle 17
20	20	TO CREATE THE FREE MARKET ZONES ACT; AND 18
21	21	TO EXEMPT A BUSINESS LOCATED IN AN 19
22	22	OPPORTUNITY ZONE FROM THE INCOME TAX, 20
23	23	THE CORPORATE FRANCHISE TAX, AND THE 21
24	24	ELECTIVE PASS-THROUGH ENTITY TAX. 22
25	25	23
26	26	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
27	27	25
28	28	SECTION 1. DO NOT CODIFY. Title. 26
29	29	This act shall be known and may be cited as the "Free Market Zones 27
30	30	Act". 28
31	31	29
32	32	SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 3, is 30
33	33	amended to add an additional section to read as follows: 31
34	34	26-51-317. Business located in opportunity zone — Definition. 32
35	35	(a) As used in this section, “opportunity zone” means a population 33
36	36	census tract located in Arkansas that is designated as a qualified 34
37	37	opportunity zone under 26 U.S.C. § 1400Z -1, as of January 1, 2019. 35
38	38	(b) There is allowed an exemption from the income tax imposed by this 36 HB1216
39	39
40	40	2 01/23/2025 2:48:18 PM JLL100
41	41	chapter for a business entity that is: 1
42	42	(1) Located in an opportunity zone; and 2
43	43	(2) Required to file a corporate income tax return under this 3
44	44	chapter. 4
45	45	5
46	46	SECTION 3. Arkansas Code § 26 -51-460 is repealed. 6
47	47	26-51-460. Opportunity zones — Definition. 7
48	48	(a) Except as provided in subsection (b) of this section, 26 U.S.C. § 8
49	49	1400Z-2, as in effect on January 1, 2018, regarding opportunity zones, is 9
50	50	adopted for the purpose of computing Arkansas income tax liability. 10
51	51	(b) As used in this section and for purposes of the adoption of 26 11
52	52	U.S.C. § 1400Z-2, “opportunity zone” means a population census tract located 12
53	53	in Arkansas that is designated as a qualified opportunity zone under 26 13
54	54	U.S.C. § 1400Z-1, as of January 1, 2019. 14
55	55	15
56	56	SECTION 4. Arkansas Code § 26 -54-102(b), concerning the entities that 16
57	57	are not included in the definition of "corporation" under the Arkansas 17
58	58	Corporate Franchise Tax Act of 1979, is amended to add an additional 18
59	59	subdivision to read as follows: 19
60	60	(4) A business entity that is: 20
61	61	(A) Located in an opportunity zone, as defined in § 26 -51-21
62	62	317; and 22
63	63	(B) Required to file a: 23
64	64	(i) Corporate income tax return under the Income Tax 24
65	65	Act of 1929, § 26-51-101 et seq.; or 25
66	66	(ii) A tax return under the Elective Pass -Through 26
67	67	Entity Tax Act, § 26 -65-101 et seq. 27
68	68	28
69	69	SECTION 5. Arkansas Code Title 26, Chapter 65, Subchapter 1, is 29
70	70	amended to add an additional section to read as follows: 30
71	71	26-65-109. Exemption for business located in opportunity zone — 31
72	72	Definition. 32
73	73	(a) As used in this section, “opportunity zone” means a population 33
74	74	census tract located in Arkansas that is designated as a qualified 34
75	75	opportunity zone under 26 U.S.C. § 1400Z -1, as of January 1, 2019. 35
76	76	(b) There is allowed an exemption from the tax imposed by this chapter 36 HB1216
77	77
78	78	3 01/23/2025 2:48:18 PM JLL100
79	79	for a business entity that is: 1
80	80	(1) Located in an opportunity zone; and 2
81	81	(2) Subject to the tax levied under this chapter. 3
82	82	4
83	83	SECTION 6. EFFECTIVE DATE. Sections 1 -5 of this act are effective for 5
84	84	tax years beginning on or after January 1, 2025. 6
85	85	7
86	86	8
87	87	9
88	88	10
89	89	11
90	90	12
91	91	13
92	92	14
93	93	15
94	94	16
95	95	17
96	96	18
97	97	19
98	98	20
99	99	21
100	100	22
101	101	23
102	102	24
103	103	25
104	104	26
105	105	27
106	106	28
107	107	29
108	108	30
109	109	31
110	110	32
111	111	33
112	112	34
113	113	35
114	114	36