AR SB73

Creates the Access to Credit for Our Rural Economy (ACRE) Act, allowing eligible lending institutions to deduct net interest income received from qualified agricultural loans when computing state income tax

Eligible lending institutions include national banking associations, state banks, registered out-of-state banks, state trust companies, and federal savings banks

Qualified agricultural loans cover personal property used for agricultural purposes (equipment, machinery, livestock, crops) and real property substantially used for agricultural production

Real property loans must be secured by first or second lien interest with loan balances under 85% of appraised value, or over 85% if the excess is covered by private mortgage insurance

Effective for tax years beginning on or after January 1, 2025