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HB 1985

Child support orders; date of conception.

2025 Regular Session Introduced by Mark Earley and 4 co-sponsors

Arkansas would create a nonrefundable $500 renter tax credit for qualifying low- to moderate-income tenants, reducing state income tax owed for the tax year.

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Bill Summary · HB 1985

Summary — HB 1985

Note on document inconsistencies
- The materials provided for “HB 1985” combine text from more than one draft and from two different jurisdictions (Arkansas and Illinois). Metadata lists the title “Suffrage; restore to Jason Terrell Carter of Madison County,” but the principal legislative text included here is an Arkansas tax-credit proposal called the “Arkansas Renter Refund Act.” A short, unrelated Illinois appropriation draft (also labeled HB1985) is also included. This summary focuses on the substantive Arkansas bill text provided and flags the inconsistencies at the end.

Main purpose

To establish an Arkansas income‑tax credit (the "Arkansas Renter Refund Act") to provide tax relief to low‑ and moderate‑income residential tenants by allowing a one‑time credit of up to $500 against state income tax for qualifying renters.

Key provisions

  • Creates a new section (proposed Arkansas Code 26-51-518) establishing a homestead credit for renters.
  • Credit amount: $500 per qualifying taxpayer.
  • Eligibility requirements:
    • Must rent the taxpayer’s primary residence as a residential tenant for the entire tax year.
    • Must have net income for the tax year of less than $40,000.
    • Must not be claimed as a dependent on another taxpayer’s return.
  • Nonrefundable: The credit claimed in a tax year may not exceed the taxpayer’s Arkansas income tax liability (i.e., it reduces tax due but is not refundable beyond tax owed).
  • Effective date: Section is effective for tax years beginning on or after January 1, 2025.
  • Draft includes the notation “DO NOT CODIFY” and simultaneously proposes adding a section to the Arkansas Code (an inconsistency in drafting).

Who is affected

  • Beneficiaries: Arkansas residents who rent their primary home for the full tax year, with net income under $40,000 and who file their own returns (not claimed as dependents).
  • State fiscal impact: The proposal would reduce Arkansas individual income‑tax receipts to the extent credits are claimed. The bill text contains no fiscal note or appropriation; program administration would require tax‑form and compliance adjustments by the Department of Finance and Administration.

Procedural / timeline status (from provided actions)

  • Introduced (filed): January 22, 2025 (sponsor: Rep. D. Garner).
  • Committee activity and hearings are listed on multiple dates in March–April 2025; a public hearing and committee substitute were recorded March 25, 2025.
  • Status: Reported as “Died in House Committee at Sine Die adjournment” (May 5, 2025) in the mixed action list. The document also lists “Died In Committee” on April 3, 2025 — reflecting inconsistent records across the combined materials.

Notes & ambiguities

  • The header/title metadata and subject (“Suffrage; restore to Jason Terrell Carter of Madison County” / Judiciary B) do not match the renter‑refund text. No text regarding suffrage restoration is included in the supplied document.
  • An unrelated Illinois HB1985 snippet (a $2 appropriation to the Illinois Finance Authority, effective July 1, 2025) appears in the file and is unrelated to the Arkansas renter tax‑credit.
  • Because of mixed and conflicting materials, verify the jurisdiction, correct bill number, and final committee actions with the official legislative record before relying on this summary for legal or policy work.

Compiled from official sources — confirm details with the bill’s official record.

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