HB1161 Summary

• Establishes the "Working Families Opportunity Credit" as a state income tax credit equal to 5% of the federal Earned Income Tax Credit (EITC) allowed under 26 U.S.C. § 32 as of January 1, 2017.

• Allows the credit to be applied against Arkansas state income tax liability under the Income Tax Act of 1929.

• Makes the credit refundable, meaning if the credit amount exceeds a taxpayer's income tax liability, the excess 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 or after January 1, 2017.