TO CREATE AN INCOME TAX CREDIT FOR TAXPAYERS SIXTY-FIVE AND OLDER IN AN AMOUNT EQUAL TO THE TAXPAYER'S PROPERTY TAX PAYMENT ON A HOMESTEAD.

House Bill 1438 proposes to create a new income tax credit for taxpayers in Arkansas who are 65 years of age or older. This credit would be equal to the amount of real property tax paid by the taxpayer on their primary residence, known as a homestead, during the tax year. The bill specifies that the credit would not include payments for delinquent property tax or associated penalties. If the credit amount exceeds the taxpayer's income tax liability, the remaining balance would be refunded. This measure would apply to tax years beginning on or after January 1, 2025.