HB 1430 Summary

• Extends the net operating loss (NOL) carry-forward period for Arkansas income tax starting January 1, 2016, with gradual increases: 6 years (2016), 7 years (2017), 8 years (2018), 9 years (2019), and 10 years (2020 and beyond).

• Maintains existing 3-year carry-forward for losses occurring before January 1, 1987, and 5-year carry-forward for losses occurring between January 1, 1987, and January 1, 2016.

• Preserves special 15-year carry-forward provision for qualified medical companies engaged in medical research, development, manufacture, and distribution.

• Makes technical corrections to statutory language, including replacing outdated phrasing with modern terminology and clarifying definitions of taxable income and net operating loss.

• Applies new extended carry-forward periods to corporate acquisitions, allowing acquiring corporations to use the longer periods for NOL carryovers if the loss occurred on or after January 1, 2016.