WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · HB 1665

Summary of House Bill 1665

Purpose and Intent

House Bill 1665 (HB 1665) was introduced to amend existing laws concerning the insurance premium tax in Arkansas. The primary intent of the bill was to repeal the tax credit that insurers could claim against the insurance premium tax for accident and health comprehensive hospital and medical coverage based on the salaries and wages of their employees.

Key Provisions

The bill proposed several significant changes to the Arkansas Code § 26-57-604, specifically regarding the credit allowed against the insurance premium tax:

  1. Repeal of the Credit:

    • The bill aimed to eliminate the credit that insurers could apply as an offset against the premium tax for collections reported as individual or group comprehensive medical or hospital coverage.

  2. Amendments to Existing Tax Credits:

    • The bill sought to modify the existing provisions that limit how much of the premium tax can be reduced by the credit based on employee salaries.
    • The offset for the accident and health premium tax would not exceed specified percentages for different tax years:
      • 80% for years before January 1, 2021
      • 70% for the tax year beginning January 1, 2021
      • 60% for the tax year beginning January 1, 2022
      • 50% for tax years beginning on or after January 1, 2023
    • The total credit available to an authorized accident or health insurer was capped at $18 million annually.

  3. Reporting Requirements:

    • Insurers were required to submit appropriate data and requests by March 1 of each year to qualify for any credits under the existing provisions.

Affected Parties

The repeal of this tax credit would primarily affect:
- Accident and health insurers operating in Arkansas, including health maintenance organizations.
- Employees of these insurers, as the credit was based on their salaries and wages.

Legislative Timeline

  • Introduced: March 4, 2025
  • Amendments Adopted:
    • Amendment No. 1 on March 17, 2025
    • Amendment No. 2 on April 2, 2025
  • Died in Committee: The bill did not progress beyond the House Committee and was marked as "died" at Sine Die adjournment on May 5, 2025.

Conclusion

House Bill 1665 aimed to repeal a specific tax credit related to the insurance premium tax, impacting how insurers calculate their tax liabilities based on employee wages. Despite its introduction and amendments, the bill ultimately did not advance through the legislative process.

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

Sign in to ask a question.