TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION.

House Bill 1538 proposed to extend the period during which businesses and taxpayers in Arkansas could use a net operating loss (NOL) to reduce their income tax liability. Currently, if a business's expenses exceed its income, it can "carry forward" that loss to offset taxable income in future years for a set period. This bill aimed to increase the general carry-forward period for these losses from 10 years to 20 years for losses occurring on or after January 1, 2025. It also specifically extended the carry-forward period for certain steel manufacturers and qualified medical companies to 20 years.