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HB 1001

TO REDUCE THE INCOME TAX RATES FOR INDIVIDUALS, TRUSTS, ESTATES, AND CORPORATIONS.

2026 First Extraordinary Session Introduced by Brandon Achor and 74 co-sponsors

HB 1001 aims to lower Arkansas income tax rates for individuals, trusts/estates, and corporations.

Notification that HB1001 is now Act 1
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WeVote Research Nonpartisan
Bill Summary · HB 1001

Summary of HB 1001 (Arkansas, 2026 Session)

Title

TO REDUCE THE INCOME TAX RATES FOR INDIVIDUALS, TRUSTS, ESTATES, AND CORPORATIONS.

Purpose and Intent

HB 1001 proposes to reduce the income tax burden across multiple tax brackets and taxpayer types in Arkansas. The bill aims to lower overall income tax rates for individuals, trusts, estates, and corporations, potentially providing tax relief and improving the state's competitive position for residents and businesses.

Key Provisions (as described by title and typical structure of rate-reduction bills)

Note: The available information includes the bill’s title and procedural history but does not provide the full text with explicit rate schedules or timelines. The following outlines reflect common elements in income tax rate-reduction bills and what such a measure would typically include. If enacted, the exact percentages, bracket thresholds, and effective dates would be defined in the enacted language.

  • Rate Reductions by Taxpayer Type

    • Individuals: A plan to lower Arkansas individual income tax rates across income brackets. This may involve reducing marginal rates, eliminating or reducing certain brackets, or providing larger standard deduction or personal exemption benefits.
    • Trusts and Estates: A corresponding reduction in the income tax rates applied to trusts and estates, potentially aligning their brackets more closely with individual rates.
    • Corporations: A reduction in corporate income tax rates or adjustments to corporate taxable income calculations to lower the tax burden on businesses.

  • Effective Dates and Transitions

    • The bill would specify when the rate reductions take effect (e.g., a phased-in schedule over multiple years or a single-year implementation).
    • There may be provisions addressing conformity with federal tax code changes or timing relative to the state budget.

  • Conformity and Adjustments

    • Provisions to ensure consistency with existing Arkansas tax provisions, credits, deductions, and exemptions, possibly including how credits interact with lower rates.
    • Potential adjustments to avoid revenue shortfalls or to preserve essential state programs (these would appear in the full fiscal note and bill language).

Who Would Be Affected

  • Individual Filers: Residents and part-year residents subject to Arkansas individual income tax would experience directly lower marginal tax rates.
  • Trusts and Estates: Taxpaying trusts and estates would face reduced rates, affecting distributions to beneficiaries and overall tax planning.
  • Corporations: C-corporations and other entities subject to Arkansas corporate income tax would see a lower tax rate, potentially impacting after-tax income and investment decisions.

Procedural and Timeline Aspects

  • Filed: May 1, 2026.
  • First Reading and Committee Referral: May 4, 2026 — Read the first time, rules suspended, second time read, and referred to the House Committee on Revenue & Taxation.
  • Legislative Path: As a bill referred to the Revenue & Taxation committee, it would be scrutinized for fiscal impact, implementation details, and alignment with state budgeting. It would require committee action, potential amendments, and eventual floor votes in the House, followed by consideration in the Senate (depending on the chamber’s process for Arkansas).

Additional Context

  • The bill lists a large number of co-sponsors from across the Arkansas House, indicating broad legislative interest and support.
  • Without the full bill text, precise bracket changes, dollar amounts, and dates are not specified here. The enacted version would include the exact rate schedules, any sunset provisions, and interaction with existing credits or deductions.

If you can provide the bill’s full text or specific sections (e.g., proposed rate tables, effective dates, and any sunset clauses), I can produce a detailed, line-by-line summary of the provisions and their fiscal impact.

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

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