On Tuesday, the House passed HB1001 and HB1002.
HB1001 lowers the top individual income tax rate from 4.4% to 3.9%, and the corporate income tax rate from 4.8% to 4.3%. These tax cuts are set to take effect on January 1, 2024. Additionally, the bill mandates the transfer of $290 million in surplus funds to the Arkansas Reserve Fund Set-Aside.
HB1002 would increase the homestead tax credit from $425 to $500, with the new credit amount also becoming effective on January 1, 2024.
The House is scheduled to reconvene on Wednesday at 10 a.m.