AR HB1361

Amends Arkansas Code § 26-51-404(b) to exclude Paycheck Protection Program loan forgiveness from Arkansas gross income, adopting federal tax treatment under the Consolidated Appropriations Act, 2021 effective January 1, 2021.

Excludes payments received under the Coronavirus Food Assistance Program (as described in 7 C.F.R. Part 9 as of January 19, 2021) from Arkansas gross income and permits tax deductions or basis increases related to these excluded amounts.

Allows the Department of Finance and Administration to provide exceptions from information return filing requirements for amounts excluded under the federal COVID-19 relief provisions.

Makes excluded amounts includable in adjustments specified in Arkansas Code § 26-51-427(2) for tax purposes.

Effective for tax years beginning on or after January 1, 2019, with emergency clause declaring immediate necessity due to 2020 tax return season being underway and the need to assist economic recovery.