AR
Arkansas House Bill HB1501

Arkansas 2025 Regular Session

Arkansas House Bill HB1501

Introduced
2/17/25  
Refer
2/17/25  

Caption

To Adopt Federal Income Tax Law Regarding Depreciation And The Expensing Of Property; And To Increase The Amount Allowed For The Expensing Of Certain Depreciable Business Assets To The Amount Allowed Under Federal Law.

Impact

The amendments proposed by HB1501 are set to take effect for tax years starting on or after January 1, 2025. They will specifically impact the calculation of Arkansas income tax liabilities for property purchased in previous years, with a focus on harmonizing state and federal tax treatment. This alignment may result in increased cash flow for businesses that can take advantage of larger deductions, potentially fostering more investment in equipment and property.

Summary

House Bill 1501 aims to update Arkansas state law regarding the income tax deductions allowed for depreciation and the expensing of property by adopting relevant provisions from federal income tax law. The bill seeks to enhance the financial framework for businesses in Arkansas by increasing the amount that can be expensed for certain depreciable business assets, aligning state tax regulations more closely with federal standards. This move is intended to improve the operational environment for businesses by providing greater tax relief and simplifying tax deductions related to asset depreciation.

Contention

One possible area of contention surrounding HB1501 could stem from varying opinions on the broader implications of adopting federal tax law at the state level. Proponents of the bill, likely to include certain business groups and legislators, may argue that it streamlines tax processes and enhances economic growth by offering businesses better financial incentives. However, critics might express concerns about the potential loss of state revenue or the prioritization of businesses' interests over the need for adequate funding in public sectors, such as education and infrastructure.

Companion Bills

No companion bills found.

Previously Filed As

AR HB1044

To Adopt Federal Law Concerning Income Tax Deductions For Depreciation And The Expensing Of Property.

AR HB1340

Regarding The Supplemental Nutrition Assistance Program; And To Require The Department Of Human Services To Apply For A Waiver Regarding Certain Veteran Disability Benefits If Allowed Under Federal Law.

AR HB1382

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

AR HB1400

To Adopt The Federal Tax Credit For Employers Who Provide Paid Family And Medical Leave For Their Employees.

AR HB1327

To Amend The Law Concerning Disposition Of Contraband And Seized Property; And To Allow Forfeited Firearms To Be Traded To Federally Licensed Firearms Dealers.

AR HB1492

To Amend The Income Tax Credit For Apprenticeship Programs; And To Increase The Income Tax Credit Allowed For Apprenticeship Programs.

AR HB1669

To Eliminate Barriers To Starting A New Business; To Amend Arkansas Income Tax Law; To Allow Certain New Businesses To Defer Paying Certain Income Taxes; And To Create The Arkansas Entrepreneur Extension Program.

AR HB1240

To Amend The Income Tax Laws Relating To Certain Trusts; To Preserve Certain Trust Assets; And To Exempt Certain Trusts From Income Tax.

AR HB1221

To Exclude Certain Involuntary Sales Of Livestock From Gross Income Under The Income Tax Act Of 1929.

AR HB1366

To Create An Income Tax Credit For Property Tax Paid On Certain Poultry Structures; And To Offset The Property Tax Burden On Poultry Farmers.

Similar Bills

No similar bills found.