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Bill

HB 1985

TO CREATE THE ARKANSAS RENTER REFUND ACT; AND TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN TAXPAYERS WHO ARE RESIDENTIAL TENANTS.

2025 Regular Session Introduced by Denise Garner

House Bill 1985 proposed a $500 tax credit for low-income Arkansas renters earning under $40,000, aimed at easing housing costs and supporting financial relief.

Died in House Committee at Sine Die adjournment.
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Bill Summary · HB 1985

Summary of House Bill 1985: Arkansas Renter Refund Act

Purpose and Intent

House Bill 1985, titled the Arkansas Renter Refund Act, was introduced to provide financial relief to residential tenants in Arkansas through an income tax credit. The bill aimed to support low-income renters by allowing them to claim a credit against their state income tax, thereby easing the financial burden of housing costs.

Key Provisions

The bill proposed the following key provisions:

  • Income Tax Credit:

    • A tax credit of $500 would be available for eligible taxpayers who:
    • Rent their primary residence for the entire tax year.
    • Have a net income of less than $40,000 for the tax year.
    • Are not claimed as a dependent on another taxpayer's income tax return.

  • Limitations:

    • The credit could not exceed the amount of income tax due by the taxpayer, ensuring that the benefit is directly tied to the taxpayer's liability.

Affected Parties

The primary beneficiaries of this legislation would have been residential tenants in Arkansas who meet the specified income criteria. This group includes individuals and families renting their homes, particularly those facing financial challenges.

Procedural Aspects

  • Introduced: April 3, 2025
  • Legislative Actions:
    • The bill was read for the first time and referred to the Committee on Revenue & Taxation on April 4, 2025.
    • Unfortunately, the bill died in the House Committee on May 5, 2025, during the Sine Die adjournment, meaning it did not advance for further consideration or voting.

Effective Date

If enacted, the provisions of the Arkansas Renter Refund Act would have been effective for tax years beginning on or after January 1, 2025.

Conclusion

While House Bill 1985 aimed to provide significant financial support to low-income renters in Arkansas, it ultimately did not progress through the legislative process. The proposed tax credit represented an effort to address housing affordability issues faced by many residents in the state.

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

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