AR HB1807

Establishes an income tax credit for Arkansas taxpayers who pay premiums for long-term care insurance policies covering the taxpayer's own care.

Limits the annual credit to a maximum of $750 per taxpayer per tax year, and the credit cannot exceed the taxpayer's total income tax liability.

Defines eligibility based on "chronically ill person" status, including inability to perform at least two activities of daily living for 90+ days without substantial assistance, or requiring substantial supervision due to severe cognitive impairment.

Prohibits claiming the credit if premium payments were already deducted on the tax return or were paid from a tax-exempt health savings account.

Effective for tax years beginning on or after January 1, 2013, with the Department of Finance and Administration to promulgate implementation rules in coordination with the Department of Health.