AR HB1275

Establishes a nonrefundable income tax credit equal to 25% of wages paid to qualified employees during family and medical leave, capped at $4,000 per employee per tax year.

Defines "family and medical leave" as leave for serious health conditions, birth or adoption of a child, and care of family members with serious health conditions, excluding earned sick leave, annual leave, and compensatory leave.

Requires employers to provide at least 4 weeks of paid family and medical leave annually for full-time employees and proportionate leave for part-time employees to qualify for the tax credit.

Limits family and medical leave to a maximum of 12 weeks in any 12-month period and allows it to run concurrently with leave required under state or federal law, including the Family and Medical Leave Act of 1993.

Requires employers adopting this leave policy to protect employees from interference or discrimination for exercising their leave rights and mandates administration by the Department of Finance and Administration under the Arkansas Tax Procedure Act.