Legislation to accelerate tax cuts and legislation to fund school safety measures have now been signed into law.
On Thursday morning, the House passed SB2 with a vote of 94-0. This legislation sets aside $50 million from the revenue surplus for the purpose of funding a school safety grant program. The grants will help districts fund the recommendations of the School Safety Commission.
The House also passed SB1 with a vote of 79-14. SB1 is identical to legislation passed by the House on Wednesday accelerating tax cuts and providing for a $150 non-refundable tax credit for Arkansans making less than $87,000 a year.
The Governor signed both pieces of legislation into law this afternoon. The top income tax rate is now reduced from 5.5% to 4.9%. The rate is retroactive to January 1, 2022. Corporate income taxes will be reduced from 5.9% to 5.3% on January 1, 2023. The signed legislation also adopts a federal depreciation schedule for businesses.
Both chambers have now adjourned Sine Die. You can watch the recorded proceedings at www.arkansashouse.org.