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AR HB1665
Bill
Status
5/5/2025
Primary Sponsor
Jeff Wardlaw
Click for details
AI Summary
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Repeals the insurance premium tax credit that allowed life, accident, and health insurers (including HMOs) to offset their premium tax liability based on noncommissioned salaries and wages paid to Arkansas employees
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Eliminates credit caps that previously limited accident and health premium tax reductions to 50% (for tax years 2023 and after) and life premium tax reductions to 70%
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Removes the $18 million annual cap per insurer on the salary/wage-based credit that applied to accident and health insurers since January 1, 2020
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Maintains the separate Arkansas historic rehabilitation income tax credit, which can still be applied against insurance premium taxes with a 5-year carryforward period
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Preserves the base 2.5% premium tax rate on net premiums and considerations for insurers transacting business in Arkansas
Legislative Description
To Repeal The Credit Allowed Against The Insurance Premium Tax For Accident And Health Comprehensive Hospital And Medical Coverage Based On The Salary And Wages Of The Employees Of The Insurer.
Last Action
Died in House Committee at Sine Die adjournment.
5/5/2025