AR HB1953

Updates Arkansas income tax law to adopt federal Internal Revenue Code provisions as they existed on January 1, 2019, replacing earlier effective dates ranging from 2007 to 2017 across multiple sections.

Modifies exclusions from gross income to include discharge of indebtedness (26 U.S.C. §§ 108 and 1017) and contributions to capital (26 U.S.C. § 118) using the January 1, 2019 federal standards.

Aligns Arkansas tax treatment of small business corporations (Subchapter S), corporate reorganizations, charitable contributions, business expenses, entertainment deductions, depreciation, and depletion allowances with 2019 federal law.

Adds a new deduction for research and development costs (26 U.S.C. §§ 174 and 280C) effective January 1, 2019.

All amendments are effective for tax years beginning on or after January 1, 2019.