WeVote
Log In

Bill

Bill

HB 1732

TO INCREASE THE AMOUNT OF THE INCOME TAX DEDUCTION ALLOWED FOR A TEACHER'S CLASSROOM INVESTMENT.

2025 Regular Session Introduced by Wade Andrews and 40 co-sponsors

HB 1732 boosts Arkansas teachers' income tax deductions for classroom expenses to $1,000 for individuals and $2,000 for married teacher couples, easing financial burdens.

Notification that HB1732 is now Act 878
0
WeVote Research Nonpartisan
Bill Summary · HB 1732

Summary of HB 1732: Increasing Income Tax Deduction for Teachers' Classroom Investment

Bill Overview

Bill Number: HB 1732
Title: To Increase the Amount of the Income Tax Deduction Allowed for a Teacher's Classroom Investment
Status: Now Act 878
Introduced: March 10, 2025
Effective Date: Tax years beginning on or after January 1, 2025

Purpose and Intent

The primary aim of HB 1732 is to enhance the financial support available to teachers in Arkansas by increasing the income tax deduction for their classroom expenses. This initiative recognizes the out-of-pocket costs that teachers often incur for classroom supplies and resources, thereby providing them with greater financial relief.

Key Provisions

  • Increased Deduction Amounts:

    • The bill raises the income tax deduction for eligible classroom expenses from:
    • $500 to $1,000 per taxpayer.
    • $1,000 to $2,000 for married couples filing jointly, provided both are teachers.

  • Qualified Expenses: The deduction applies to a range of classroom-related expenses, including:

    • Books and school supplies
    • Computer equipment and software
    • Athletic equipment
    • Food for students
    • Clothing for students

Affected Parties

  • Teachers: The bill directly benefits preschool, elementary, and secondary education teachers who meet specific qualifications.
  • Married Teacher Couples: Couples who are both teachers will see a more significant benefit due to the increased joint deduction.

Fiscal Impact

  • Projected Revenue Reduction: The implementation of this bill is expected to reduce general revenue by approximately $350,000 in FY2026. This estimate is based on current tax return data reflecting the deductions claimed by teachers.

Implementation Considerations

  • System Modifications: The Arkansas Integrated Revenue System (AIRS) will require updates at a projected cost of $4,000 to accommodate the new deduction amounts. This includes changes to computer programs, tax forms, and instructions.
  • Education and Training: Department employees and the tax community will need to be educated about the new provisions to ensure proper implementation.

Legislative Process

  • The bill underwent several readings and amendments before being passed by both the House and Senate. It was officially enrolled and transmitted to the Governor's Office on April 15, 2025, and subsequently became Act 878 on April 17, 2025.

Conclusion

HB 1732 represents a significant step towards supporting teachers in Arkansas by alleviating some of the financial burdens associated with classroom expenses. By increasing the income tax deduction, the legislation aims to enhance the overall educational environment and acknowledge the contributions of educators.

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

Sign in to ask a question.