AR SB257

Creates the Access to Credit for Our Rural Economy (ACRE) Act to provide income tax deductions for certain financial institutions making agricultural loans.

Allows eligible lending institutions (national banks, state banks, registered out-of-state banks, state trust companies, and federal savings banks) to deduct net interest income received from qualified agricultural loans.

Defines qualified agricultural loans as loans on personal property used for agriculture (equipment, machinery, livestock, crops) or loans on real property substantially used for agricultural production secured by first or second lien interests.

Requires real property agricultural loans to have an outstanding balance of less than 85% of appraised value, or if greater than 85%, the excess amount must be insured by private mortgage insurance.

Effective for tax years beginning on or after January 1, 2024.