AR HB1001

Adopts federal depreciation and expensing rules under 26 U.S.C. §§ 167 and 168(a)-(j) as of January 1, 2019, and 26 U.S.C. § 179 as of January 1, 2022, for computing Arkansas income tax liability for property purchased in tax years beginning on or after January 1, 2022.

Creates an inflationary relief income-tax credit for the 2022 tax year for Arkansas resident individual taxpayers filing full-year resident returns, with credit amounts ranging from $10 to $300 for single filers earning up to $116,000 and from $10 to $600 for joint filers earning up to $247,000.

Credits phase out gradually as net income increases within the specified ranges, with married couples filing separately each eligible to claim one credit and joint filers receiving one combined credit against their aggregate tax.

Restricts the credits to the 2022 tax year only and denies them to taxpayers filing nonresident or part-year resident returns.

Provides that excess credits beyond tax liability shall be refunded to the taxpayer, with the provision effective for tax years beginning on or after January 1, 2022.