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

House Bill 1985, known as the "Arkansas Renter Refund Act," proposes to create an income tax credit for certain residential tenants in Arkansas. The bill establishes a $500 income tax credit that qualifying taxpayers can claim against their state income tax. To be eligible, a taxpayer must rent their primary residence for the entire tax year, have a net income less than $40,000, and not be claimed as a dependent on another tax return. The credit amount cannot exceed the total income tax owed by the taxpayer for that year.