Day one summary of Arkansas Special Session

On the first day of the special session, committees advanced two pieces of legislation.

The Joint Budget Committee advanced SB2. This 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 Revenue and Taxation Committee advanced HB1002 which accelerates the implementation of income and corporate tax cuts. If enacted, the top income tax rate would drop from 5.5% to 4.9% and make the reduction retroactive to January 1, 2022.  Corporate income taxes would be reduced 5.9% to 5.3% on January 1, 2023.

HB1002 also grants a nonrefundable income tax credit of $150  to taxpayers with income up to $87,000 and $300 to couples filing jointly with income up to $174,000.

In addition, HB1002 adopts a federal depreciation schedule for businesses.