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