Arkansas 2025 Regular Session

Arkansas Senate Bill SB73 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	JLL105 01/16/2025 7:15:35 AM JLL105
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 SENATE BILL 73 3
6	6	4
7	7	By: Senator B. Johnson 5
8	8	By: Representative Beaty Jr. 6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE INCOME TAX LAWS; TO PROVIDE FOR 9
12	12	INCOME TAX DEDUCTIONS FOR CERTAIN FINANCIAL 10
13	13	INSTITUTIONS; TO CREATE THE ACCESS TO CREDIT FOR OUR 11
14	14	RURAL ECONOMY (ACRE) ACT; TO PROVIDE AN INCOME TAX 12
15	15	DEDUCTION FOR CERTAIN AGRICULTURAL LOANS; AND FOR 13
16	16	OTHER PURPOSES. 14
17	17	15
18	18	16
19	19	Subtitle 17
20	20	TO CREATE THE ACCESS TO CREDIT FOR OUR 18
21	21	RURAL ECONOMY (ACRE) ACT; AND TO PROVIDE 19
22	22	AN INCOME TAX DEDUCTION FOR CERTAIN 20
23	23	AGRICULTURAL LOANS. 21
24	24	22
25	25	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
26	26	24
27	27	SECTION 1. DO NOT CODIFY. Title. 25
28	28	This act shall be known and may be cited as the "Access to Credit for 26
29	29	Our Rural Economy (ACRE) Act". 27
30	30	28
31	31	SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 4, is 29
32	32	amended to add an additional section to read as follows: 30
33	33	26-51-462. Deduction — Qualified agricultural loans — Definitions. 31
34	34	(a) As used in this section: 32
35	35	(1) “Eligible lending institution” means a: 33
36	36	(A) National banking association; 34
37	37	(B) State bank and a registered out -of-state bank, as 35
38	38	those terms are defined in § 23 -45-102; 36 SB73
39	39
40	40	2 01/16/2025 7:15:35 AM JLL105
41	41	(C) State trust company, as defined in § 23 -51-102; or 1
42	42	(D) Federal savings bank; 2
43	43	(2) “Interest” means interest on indebtedness attributed to the 3
44	44	state and incurred in the ordinary course of the active conduct of any 4
45	45	business; 5
46	46	(3) “Net interest income received from qualified agricultural 6
47	47	loans” means the product of the ratio of the interest income earned on 7
48	48	qualified agricultural loans over total interest income earned, in relation 8
49	49	to the adjusted gross income of the eligible lending institution without 9
50	50	regard to the deduction allowed under this section; and 10
51	51	(4) “Qualified agricultural loan” means a loan that: 11
52	52	(A) Is made on personal property used for an agricultural 12
53	53	purpose, including without limitation equipment and machinery, livestock, and 13
54	54	crops; or 14
55	55	(B) Has the following characteristics: 15
56	56	(i) Is made on real property that is substantially 16
57	57	used for the production of one (1) or more agricultural products; 17
58	58	(ii) Is secured by a: 18
59	59	(a) First lien interest in real property; or 19
60	60	(b) Second lien interest in the real property; 20
61	61	and 21
62	62	(iii) Has an outstanding loan balance that is: 22
63	63	(a) Less than eighty -five percent (85%) of the 23
64	64	appraised value of the real estate; or 24
65	65	(b) More than eighty -five percent (85%) of the 25
66	66	appraised value of the real estate if the loan balance in excess of eighty -26
67	67	five percent (85%) of the appraised value is insured by private mortgage 27
68	68	insurance. 28
69	69	(b) In computing net income for the purposes of this chapter, there is 29
70	70	allowed as a deduction in addition to all other deductions allowed by law for 30
71	71	the net interest income received from qualified agricultural loans that is 31
72	72	received by an eligible lending institution. 32
73	73	33
74	74	SECTION 3. EFFECTIVE DATE. Section 2 of this act is effective for tax 34
75	75	years beginning on or after January 1, 2025. 35
76	76	36