| 1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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| 2 | 2 | | *JLL249* 03/06/2025 7:43:47 AM JLL249 |
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| 3 | 3 | | State of Arkansas 1 |
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| 4 | 4 | | 95th General Assembly A Bill 2 |
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| 5 | 5 | | Regular Session, 2025 HOUSE BILL 1698 3 |
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| 6 | 6 | | 4 |
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| 7 | 7 | | By: Representative Torres 5 |
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| 8 | 8 | | By: Senator J. Petty 6 |
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| 9 | 9 | | 7 |
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| 10 | 10 | | For An Act To Be Entitled 8 |
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| 11 | 11 | | AN ACT TO AMEND THE LAW CONCERNING THE INCOME TAX 9 |
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| 12 | 12 | | TREATMENT OF EMPLOYER CONTRIBUTIONS TO A HEALTHCARE 10 |
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| 13 | 13 | | SHARING MINISTRY OR OTHER MEDICAL COST -SHARING 11 |
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| 14 | 14 | | PROGRAM; TO EXCLUDE EMPLOYER CONTRIBUTIONS TO AN 12 |
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| 15 | 15 | | EMPLOYEE'S HEALTHCARE SHARING MINISTRY OR OTHER 13 |
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| 16 | 16 | | MEDICAL COST-SHARING PROGRAM FROM INCOME TAX; TO 14 |
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| 17 | 17 | | ALLOW AN INCOME TAX DEDUCTION FOR AN EMPLOYER'S 15 |
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| 18 | 18 | | CONTRIBUTION TO AN EMPLOYEE'S HEALTHCARE SHARING 16 |
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| 19 | 19 | | MINISTRY OR OTHER MEDICAL COST -SHARING PROGRAM; AND 17 |
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| 20 | 20 | | FOR OTHER PURPOSES. 18 |
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| 22 | 22 | | 20 |
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| 23 | 23 | | Subtitle 21 |
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| 24 | 24 | | TO AMEND THE LAW CONCERNING THE INCOME 22 |
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| 25 | 25 | | TAX TREATMENT OF EMPLOYER CONTRIBUTIONS 23 |
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| 26 | 26 | | TO A HEALTHCARE SHARING MINISTRY OR 24 |
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| 27 | 27 | | OTHER MEDICAL COST-SHARING PROGRAM. 25 |
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| 28 | 28 | | 26 |
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| 29 | 29 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27 |
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| 30 | 30 | | 28 |
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| 31 | 31 | | SECTION 1. Arkansas Code § 26 -51-404(b), concerning exclusions from 29 |
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| 32 | 32 | | "gross income" under the Income Tax Act of 1929, is amended to add an 30 |
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| 33 | 33 | | additional subdivision to read as follows: 31 |
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| 34 | 34 | | (36) Contributions by an employer to an employee's healthcare 32 |
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| 35 | 35 | | sharing ministry as defined in § 23 -60-104 or other medical cost -sharing 33 |
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| 36 | 36 | | program. 34 |
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| 37 | 37 | | 35 |
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| 38 | 38 | | SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 4, is 36 HB1698 |
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| 39 | 39 | | |
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| 40 | 40 | | 2 03/06/2025 7:43:47 AM JLL249 |
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| 41 | 41 | | amended to add an additional section to read as follows: 1 |
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| 42 | 42 | | 26-51-462. Deduction — Employer contributions to healthcare sharing 2 |
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| 43 | 43 | | ministry or other medical cost -sharing program. 3 |
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| 44 | 44 | | In computing net income for the purposes of this chapter, there is 4 |
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| 45 | 45 | | allowed as a deduction in addition to all other deductions allowed by law for 5 |
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| 46 | 46 | | an employer's contribution to an employee's health care sharing ministry or 6 |
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| 47 | 47 | | as defined in § 23-60-104 or other medical cost -sharing program. 7 |
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| 48 | 48 | | 8 |
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| 49 | 49 | | SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective 9 |
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| 50 | 50 | | for tax years beginning on or after January 1, 2026. 10 |
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