Bill
HB 1665
Arkansas bill narrows and caps a wage-based premium tax credit for life/accident health insurers, excluding many plans, boosting state premium tax collections.
Note up front: the document you supplied contains text from multiple different HB 1665 bills across states and sessions (Arkansas, Missouri, Illinois) with differing subjects. The primary, detailed text in the file appears to be an Arkansas bill (95th General Assembly, 2025) that would amend Arkansas insurance premium tax law. There is also partial Missouri language about concealed‑carry law and a short Illinois technical amendment. Below I summarize the Arkansas insurance bill and note the other, unrelated materials included.
Sponsor: Representative Wardlaw
Status/timeline (Arkansas text)
- Introduced / Engrossed versions: H3/17/25 and H4/2/25 (amendments adopted)
- Read and amended in March–April 2025; reported correctly engrossed
- Legislative action summary in the file shows the bill ultimately “Died in House Committee at Sine Die adjournment” (5/05/2025).
Purpose
- To amend Arkansas Code § 26‑57‑604 to limit or repeal the application of a premium‑tax credit available to life, accident and health insurers that is based on noncommissioned salaries and wages of Arkansas employees.
Key provisions / changes
- Narrowing of what premium collections are eligible for the wage‑based credit:
- The credit may not be applied as an offset against premium tax on collections reported as individual or group comprehensive medical or hospital coverage (amendment language varies — see Amendments H1/H2 described below).
- Amendment H1 also bars using the credit to offset tax on collections from certain individual marketplace plans (Arkansas Health and Opportunity for Me Act plans, Arkansas Health Insurance Marketplace plans, or individual qualified health plans, including stand‑alone dental) and eligible individual Medicaid members served by risk‑based provider organizations.
- Gradual reduction in the maximum percentage by which the credit can offset the accident & health premium tax:
- Tax years beginning before Jan 1, 2021: 80%
- Tax year beginning Jan 1, 2021: 70%
- Tax year beginning Jan 1, 2022: 60%
- Tax years beginning on/after Jan 1, 2023: 50%
- Annual cap: beginning Jan 1, 2020, an authorized accident or health insurer may not receive more than $18,000,000 total per year under this subsection.
- Life premium tax offset cap: the offset shall not reduce the life premium tax due by more than 70% (appears in Amendment H1).
- Filing and computation rules:
- Insurers seeking the credit must furnish prescribed data and request forms on or before March 1 each year.
- For purposes of calculating taxes under §§ 23‑63‑102 — 23‑63‑104, an insurer qualifying for the credit must compute tax using an Arkansas premium tax rate of 2.5% (language clarifies computation is “without regard to” the credit in some versions).
- Other administrative rules in Amendment H1:
- Taxes are to be reported and paid on a quarterly estimated basis and reconciled annually.
- To qualify for the salary/wage credit, an employee must be employed at least six months.
Who is affected
- Authorized life insurers, accident and health insurers, and health maintenance organizations that write Arkansas business and previously claimed the wage‑based premium tax credit.
- Coverage lines specifically carved out (individual/group comprehensive medical or hospital coverage, marketplace plans, and certain Medicaid enrollments) would no longer be eligible for the credit offset.
- Potential impact on insurers’ Arkansas tax liabilities (reducing credits increases net premium tax due for affected lines), and on state tax revenue (likely higher collections from the targeted lines).
Potential fiscal/administrative impact
- By limiting the credit (line exclusions, percentage reductions, $18M annual cap), the bill would likely increase premium tax receipts from accident & health/comprehensive medical lines relative to current practice.
- Insurers must submit documentation annually (by March 1) and reconcile quarterly estimates; administrative burden is clarified/maintained.
If you intended a summary of a different HB 1665 (for example, the Missouri concealed‑carry draft or an HOA/condo concealed‑carry restriction bill referenced in your initial header), tell me which state/version you want summarized and I will produce a focused summary for that bill.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
