AR SB352

Creates an income tax credit equal to 50% of dependent care assistance amounts excluded from an employer's income under federal law (26 U.S.C. § 129), available only to employers with at least 50% of employees earning less than $55,000 annually.

Establishes a $3,000,000 aggregate cap on exemption certificates issued annually by the Arkansas Economic Development Commission on a first-come, first-served basis.

Allows employers to carry forward unused tax credits for five consecutive tax years, with excess credits refundable to charitable organizations exempt under 26 U.S.C. § 501(c)(3).

Permits eligible employers to sell income tax credits to other taxpayers, with purchasers able to use credits only to the extent unused by the original recipient and carry them forward under the same five-year provision.

Requires annual adjustments to the $55,000 wage threshold based on Consumer Price Index cost-of-living adjustments (capped at 3%), rounded to the nearest $100.