Budget & Taxes (Tax Credits)

HB 1001 reduces income tax rates for Arkansas residents, including individuals, trusts, estates, and both domestic and foreign corporations. For individuals, the bill establishes a progressive tax structure with rates ranging from 0% to 3.7% for income up to $94,700, while providing a specific tax credit for income between $94,701 and $97,600. Corporations see their tax brackets adjusted starting in 2027, with rates increasing from 1% to 4.1% on net income exceeding $11,000. The legislation also includes provisions for annual adjustments to the individual tax tables to account for inflation or other economic factors.