AR HB1240

Creates an earned income tax credit against Arkansas income tax liability equal to 5% of the federal earned income tax credit allowed under 26 U.S.C. § 32 as of January 1, 2013

Any excess credit amount that exceeds a taxpayer's income tax liability shall be refunded to the taxpayer

Requires the Department of Finance and Administration to annually notify taxpayers of their potential eligibility for the credit

Effective for tax years beginning on and after January 1, 2013