AR SB1

Reduces individual income tax rates beginning January 1, 2022, with maximum top rate of 4.9% for 2022, declining to 4.9% by 2025, and includes bracket adjustment credits for middle-income taxpayers between $84,501-$90,600.

Reduces corporate income tax rates for tax years beginning January 1, 2023, with the highest rate declining from 5.7% to 5.5% in 2024 and to 5.3% in 2025, applicable to both domestic and foreign corporations.

Adopts federal depreciation and expensing rules under 26 U.S.C. §§ 167, 168, and 179, updating Section 179 to reflect the January 1, 2022 version for property purchased in tax years beginning on or after January 1, 2022.

Creates a temporary inflationary relief income-tax credit for the 2022 tax year ranging from $10-$300 for individual taxpayers with net income up to $101,000 (single filers) or $202,000 (joint filers).

All future tax reductions are contingent on whether funds are transferred from the Catastrophic Reserve Fund between July 1, 2022 and January 1, 2024; if transferred, tax cuts revert to 2023 rates.