AR HB2220

Allows first-time homebuyers who purchase a principal residence in Arkansas to claim an income tax credit equal to the greater of $2,500 or 10% of the purchase price.

Defines first-time homebuyer as an individual with no ownership interest in a principal residence during the three-year period before purchase, including the individual's spouse if married.

Reduces the credit based on modified adjusted gross income, phasing out for single filers over $75,000 and married filers over $150,000.

Limits the credit to the first 4,000 taxpayers claiming it, with credits claimed by multiple individuals on the same property counting as one claim.

Denies the credit to non-residents, nonresident aliens, and taxpayers who dispose of or cease to use the property as their principal residence before the end of the taxable year.