Arkansas 2025 Regular Session

Arkansas House Bill HB1540 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	JLL136 02/20/2025 9:59:29 AM JLL136
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1540 3
6	6	4
7	7	By: Representatives J. Mayberry, K. Brown 5
8	8	6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE INCOME TAX CREDIT AND THE INCOME 9
12	12	TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, AND 10
13	13	CARING FOR AN INDIVIDUAL WITH A DISABILITY; TO AMEND 11
14	14	AND INCREASE THE INCOME TAX CREDIT ALLOWED FOR 12
15	15	MAINTAINING, SUPPORTING, AND CARING FOR AN INDIVIDUAL 13
16	16	WITH A DEVELOPMENTAL DISABILITY; TO REPEAL THE INCOME 14
17	17	TAX DEDUCTION ALLOWED FOR MAINTAINING, SUPPORTING, 15
18	18	AND CARING FOR AN INDIVIDUAL WITH A TOTAL AND 16
19	19	PERMANENT DISABILITY; AND FOR OTHER PURPOSES. 17
20	20	18
21	21	19
22	22	Subtitle 20
23	23	TO AMEND THE INCOME TAX CREDIT AND THE 21
24	24	INCOME TAX DEDUCTION RELATED TO 22
25	25	MAINTAINING, SUPPORTING, AND CARING FOR 23
26	26	AN INDIVIDUAL WITH A DISABILITY. 24
27	27	25
28	28	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
29	29	27
30	30	SECTION 1. Arkansas Code § 26 -51-418 is repealed. 28
31	31	26-51-418. Deductions — Child with disability — Definitions. 29
32	32	(a) In addition to any other state income tax deduction permitted by 30
33	33	law, a taxpayer in this state who is maintaining, supporting, and caring for 31
34	34	a totally and permanently disabled child in his or her home shall be 32
35	35	permitted a deduction on his or her Arkansas income taxes of five hundred 33
36	36	dollars ($500) for each income year that the taxpayer maintains, supports, 34
37	37	and cares for such totally and permanently disabled child. 35
38	38	(b) As used in this section: 36 HB1540
39	39
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41	41	(1) “Child” means a natural or adopted child of the taxpayer; 1
42	42	and 2
43	43	(2)(A) “Totally and permanently disabled” means any child who is 3
44	44	unable to engage in any substantial gainful activity by reason of any 4
45	45	medically determinable physical or mental impairment which can be expected to 5
46	46	result in death or which has lasted or can be expected to last for a 6
47	47	continuous period of not less than twelve (12) months. 7
48	48	(B) A physical or mental impairment is an impairment that 8
49	49	results from anatomical, physiological, or psychological abnormalities which 9
50	50	are demonstrable by medically acceptable clinical or laboratory diagnostic 10
51	51	techniques. 11
52	52	(c) The Secretary of the Department of Finance and Administration may 12
53	53	adopt appropriate rules to carry out the purpose and intent of this section 13
54	54	and to prevent abuse of the deduction provided for in this section. 14
55	55	15
56	56	SECTION 2. Arkansas Code § 26 -51-503 is amended to read as follows: 16
57	57	26-51-503. Support of a child an individual with a developmental 17
58	58	disability — Definitions. 18
59	59	(a) In addition to the state income tax credit permitted by § 26 -51-19
60	60	501(a) and (b), any taxpayer in this state who is maintaining, supporting, 20
61	61	and caring for an individual with a diagnosis of a developmental disability 21
62	62	in the taxpayer's home is permitted, in addition to all other income tax 22
63	63	credits, a credit of five hundred dollars ($500) one thousand dollars 23
64	64	($1,000) for each income year for that individual. 24
65	65	(b)(1) Any person wishing to take advantage of this tax credit must 25
66	66	have certification by a licensed physician, licensed psychologist, or 26
67	67	licensed psychological examiner , licensed advanced practice registered nurse, 27
68	68	or licensed physician assistant that the individual has a diagnosis of a 28
69	69	developmental disability. 29
70	70	(2) A certification provided before January 1, 2025, on the form 30
71	71	required by the Department of Finance and Administration under this section 31
72	72	is effective for a person to take advantage of the tax credit allowed under 32
73	73	this section. 33
74	74	(c) As used in this section: 34
75	75	(1) “Diagnosis of a developmental disability” means a disability 35
76	76	of a person that: 36 HB1540
77	77
78	78	3 02/20/2025 9:59:29 AM JLL136
79	79	(A) Is attributable to: 1
80	80	(i) An intellectual disability, cerebral palsy, 2
81	81	epilepsy, spina bifida, Down syndrome, or autism; 3
82	82	(ii) Another condition of the person found to be 4
83	83	closely related to an intellectual disability because the condition results 5
84	84	in an impairment of general intellectual functioning or adaptive behavior 6
85	85	similar to that of a person with an intellectual disability or requires 7
86	86	treatment and services similar to that required for a person with an 8
87	87	intellectual disability; or 9
88	88	(iii) Dyslexia resulting from a disability or 10
89	89	condition described in subdivision (c)(1)(A)(i) or subdivision (c)(1)(A)(ii) 11
90	90	of this section; 12
91	91	(B) Originates before the person reaches twenty -two (22) 13
92	92	years of age; 14
93	93	(C) Has continued or can be expected to continue 15
94	94	indefinitely; and 16
95	95	(D) Constitutes a substantial handicap to the person's 17
96	96	ability to function without appropriate support services, including without 18
97	97	limitation: 19
98	98	(i) Planned recreational activities; 20
99	99	(ii) Medical services such as physical therapy and 21
100	100	speech therapy; and 22
101	101	(iii) Possibilities for sheltered employment or job 23
102	102	training "Developmental disability" means the same as defined in 42 U.S.C. § 24
103	103	15002, as it existed on January 1, 2025 ; and 25
104	104	(2) “Individual” means a child of the taxpayer's blood, an 26
105	105	adopted child, or a dependent within the meaning of § 26 -51-501(a)(3)(B). 27
106	106	28
107	107	SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective 29
108	108	for tax years beginning on or after January 1, 2025. 30
109	109	31
110	110	32
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114	114	36