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HB 1907

TO AMEND THE INCOME TAX DEDUCTION FOR DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO ADOPT FEDERAL INCOME TAX LAW CONCERNING THE DEDUCTION FOR DEPRECIATION AND THE EXPENSING OF PROPERTY.

2025 Regular Session Introduced by Robin Lundstrum and 1 co-sponsor

HB 1907 aimed to align Arkansas tax law with federal rules on property depreciation, benefiting taxpayers with greater deductions, but it died in committee.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1907

Summary of House Bill 1907

Bill Number: HB 1907
Title: To Amend the Income Tax Deduction for Depreciation and the Expensing of Property; and to Adopt Federal Income Tax Law Concerning the Deduction for Depreciation and the Expensing of Property
Status: Died in House Committee at Sine Die adjournment
Introduced: March 31, 2025
Classification: Bill

Purpose and Intent

House Bill 1907 aimed to update Arkansas state tax law regarding the income tax deductions for depreciation and the expensing of property. The bill sought to align state tax regulations with federal tax law, specifically referencing the provisions of the Internal Revenue Code related to depreciation and expensing.

Key Provisions

The bill proposed the following significant changes:

  1. Adoption of Federal Law:

    • The bill aimed to adopt the federal income tax laws outlined in Title 26 U.S.C. §§ 167 and 168, as they were in effect on January 1, 2019, for property purchased in tax years beginning on or after January 1, 2014.
    • Additionally, it sought to adopt the updated federal laws as they would be in effect on January 1, 2025, for property purchased in tax years beginning on or after that date.

  2. Effective Date:

    • The provisions of the bill were set to take effect for tax years beginning on or after January 1, 2025.

Impact

If enacted, HB 1907 would have affected:

  • Taxpayers: Individuals and businesses in Arkansas who claim deductions for depreciation and expensing of property would have benefited from the updated federal guidelines, potentially allowing for greater deductions and more favorable tax treatment.
  • State Revenue: The alignment with federal law could have implications for state tax revenue, depending on how the changes would affect taxpayer behavior and the overall tax base.

Legislative Actions

  • March 31, 2025: The bill was filed.
  • April 1, 2025: The bill was read for the first time, rules were suspended, and it was read a second time before being referred to the Committee on Revenue & Taxation - House.
  • May 5, 2025: The bill died in the House Committee at Sine Die adjournment, meaning it did not advance for further consideration.

Conclusion

House Bill 1907 represented an effort to modernize Arkansas tax law in line with federal standards regarding property depreciation and expensing. However, the bill did not progress beyond the committee stage and ultimately did not become law.

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

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