To Amend The Income Tax Credit And The Income Tax Deduction Related To Maintaining, Supporting, And Caring For An Individual With A Disability.
Impact
If adopted, HB1862 will enhance economic support for families caring for those with developmental disabilities, aligning the state's tax incentives more effectively with current needs. The proposed increase in credits aims to alleviate the financial burden on caregivers by allowing them to claim a higher amount on their tax returns, thus encouraging and supporting the upkeep of disabled individuals. This change will affect Arkansas's income tax law, potentially impacting the financial well-being of families and caregivers across the state who struggle to manage their expenses.
Summary
House Bill 1862 aims to amend existing provisions regarding income tax credits and deductions related to caring for individuals with disabilities. Specifically, the bill proposes to increase the income tax credit available for taxpayers maintaining, supporting, and caring for individuals diagnosed with developmental disabilities. The current deduction for those caring for individuals with total and permanent disabilities would be repealed, emphasizing a shift towards tax credits instead of deductions for supporting disabled children.
Contention
Notably, there may be concerns about the repeal of the deduction for caring for totally and permanently disabled individuals, as this could result in a loss of tax benefits for some families. The discussions around the bill may reveal an ongoing debate between maintaining existing benefits versus implementing new tax incentives. While proponents believe that tax credits are a more effective form of financial support, opponents might argue that repealing long-standing deductions may unfairly disadvantage certain taxpayers, particularly those with higher costs associated with caregiving.
To Reduce The Income Tax Rates Applicable To Individuals, Trusts, Estates, And Corporations; To Create An Inflationary Relief Income Tax Credit For Certain Taxpayers; And To Declare An Emergency.
To Amend The Wood Energy Products And Forest Maintenance Income Tax Credit; And To Allow An Income Tax Credit For Wood Energy Products And Forest Maintenance Expansion Projects.
To Amend The Tax Credit For The Support Of A Child With A Developmental Disability; And To Remove The Requirement For Recertification Of A Developmental Disability That Is Expected To Continue Indefinitely.