Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 51 - INCOME TAXES (§§ 26-51-101 — 26-51-2804) › Subchapter 5 - TAX CREDITS GENERALLY (§§ 26-51-501 — 26-51-517) › Section 26-51-501 - Personal tax credits - Definitions

From
Less Than or Equal To
Credit Amount
$0
$23,600
$60
$23,601
$23,700
$55
$23,701
$23,800
$50
$23,801
$23,900
$45
$23,901
$24,000
$40
$24,001
$24,100
$35
$24,101
$24,200
$30
$24,201
$24,300
$25
$24,301
$24,400
$20
$24,401
$24,500
$15
$24,501
$24,600
$10
$24,601
$24,700
$5
$24,701 and up
$0
(a)
There shall be deducted from the tax after the tax has been computed as set forth in the Income Tax Act of 1929, §
26-51-101
et seq., a personal tax credit as follows:
(1)
(A)
For a single individual, the adjusted individual credit.
(B)
However, a taxpayer who was blind or deaf at any time during the income year shall be entitled to an additional tax credit of twenty dollars ($20.00).
(C)
A single individual who is deaf-blind shall be entitled to an additional tax credit of forty dollars ($40.00).
(D)
A single individual of sixty-five (65) years of age or older shall be entitled to an additional tax credit of twenty dollars ($20.00);
(2)
(A)
(i)
(a)
For the head of household, surviving spouse, or married spouses living together, the adjusted joint credit.
(b)
Spouses living together and filing either jointly or separately on the same income tax form shall receive only one (1) adjusted joint credit against their aggregate tax.
(ii)
Subdivision (a)(2)(A)(i) of this section shall apply if the Secretary of the Department of Finance and Administration continues to provide a tax return on which spouses can elect to file jointly or separately on the same return.
(B)
However, in the event that either of the spouses is sixty-five (65) years of age or older, each spouse who is sixty-five (65) years of age or older shall be entitled to an additional tax credit of twenty dollars ($20.00).
(C)
However, a spouse filing a separate return on a separate tax form shall receive the adjusted individual credit on each return so filed, but if the spouse is sixty-five (65) years of age or older, each of them who is sixty-five (65) years of age or older shall be entitled to an additional tax credit of twenty dollars ($20.00).
(D)
"Head of household" means the same as defined in
26 U.S.C. § 2(b)
, as in effect on January 1, 2001.
(E)
"Surviving spouse" means the same as defined in
26 U.S.C. § 2(a)
, as in effect on January 1, 2001;
(3)
(A)
For each individual, other than a spouse, who has a gross income for the tax year of less than three thousand dollars ($3,000), who has not filed a joint return with his or her spouse for the taxable year, and who is dependent upon and receives his or her chief support from the taxpayer, the adjusted individual credit.
(B)
(i)
As used in subdivision (a)(3)(A) of this section, "dependent" means the same as defined in
26 U.S.C. § 152
, as in effect on January 1, 2005.
(ii)
"Dependent" does not include any individual who is a citizen or subject of a foreign country unless that individual is a resident of the United States or a country contiguous to the United States;
(4)
In the case of a fiduciary:
(A)
If taxable under §
26-51-203(a)(1)
, the adjusted individual credit;
(B)
If taxable under §
26-51-203(a)(2)
, the same tax credit as would be allowed the deceased if living; and
(C)
If taxable under §
26-51-203(a)(3)
, the tax credit to which the beneficiary would be entitled;
(5)
In the case of a nonresident taxpayer, the taxpayer shall be entitled to that proportion of the tax credit granted by the Income Tax Act of 1929, §
26-51-101
et seq., that the gross income within the state bears to the entire gross income wherever earned; and
(6)
(A)
An individual taxpayer having net income up to twenty-four thousand seven hundred dollars ($24,700) who timely files a tax return is allowed an income tax credit against the income tax imposed by this chapter in accordance with the table set forth below:
(B)
The amount of the income tax credit under subdivision (a)(6)(A) of this section that may be claimed by the taxpayer in a tax year shall not exceed the amount of income tax due by the taxpayer.
(C)
The table in subdivision (a)(6)(A) of this section shall be adjusted annually in accordance with the method set forth in §
26-51-201(d)
.
(b)
(1)
The status of the last day of the income year shall determine the right to the tax credits provided in this section.
(2)
However, a taxpayer shall be entitled to tax credits for a husband or wife or a dependent who has died during the income year.
(c)
(1)
As used in this section, "blind person" means any person:
(A)
Who is totally blind, and cannot tell light from darkness;
(B)
A person whose central visual acuity does not exceed
20
/
200
in the better eye with correcting lenses; or
(C)
Whose fields of vision are so limited that the widest diameter of the visual field subtends an angle no greater than twenty degrees (20°).
(2)
For the purposes of subdivision (a)(1) of this section:
(A)
An individual is deaf only if his or her average loss in the speech frequencies which are five hundred hertz (500 Hz) to two thousand hertz (2,000 Hz) in the better ear is eighty-six decibels (86 dB), International Organization for Standardization, or worse; and
(B)
An individual is deaf-blind only if he or she is both deaf and blind.
(d)
For the purposes of this section:
(1)
"Adjusted individual credit" shall be twenty dollars ($20.00); and
(2)
"Adjusted joint credit" shall be forty dollars ($40.00).
(e)
(1)
(A)
Not later than July 15 of each calendar year, the Secretary of the Department of Finance and Administration shall increase the adjusted individual credit and adjusted joint credit by the cost-of-living adjustment for that current calendar year, rounding each amount to the nearest dollar.
(B)
The annual cost-of-living adjustment shall apply to the adjusted credits as contained in subdivisions (d)(1) and (2) of this section.
(2)
(A)
For purposes of subdivision (e)(1) of this section, the cost-of-living adjustment for any calendar year is the percentage, if any, by which the Consumer Price Index for the calendar year preceding the taxable year exceeds the Consumer Price Index for the calendar year 2001.
(B)
The Consumer Price Index for any calendar year is the average of the Consumer Price Index as of the close of the twelve-month period ending on August 31 of that calendar year.
(C)
As used in this subsection, "Consumer Price Index" means the last Consumer Price Index for All Urban Consumers published by the United States Department of Labor.
(3)
The adjusted credit amounts shall apply for tax years beginning on and after January 1, 2003.
(4)
The secretary shall not increase the adjusted credit for any calendar year unless the conditions of subsection (f) of this section are met.
(f)
The adjusted credit applicable for any calendar year shall not be increased unless:
(1)
The net available general revenue forecast provided to the Joint Committee on Economic and Tax Policy under §
10-3-1404(a)(1)(A)
in May of the calendar year for which a credit increase is contemplated indicates that net available general revenue growth for the fiscal year beginning in the calendar year for which a credit increase is contemplated will be four and two-tenths percent (4.2%) or greater; and
(2)
Either:
(A)
The net available general revenues for the fiscal year ending in the calendar year for which a credit increase is contemplated exceed the official forecast by at least five-tenths of one percent (0.5%); or
(B)
The net available general revenues for the fiscal year ending in the calendar year for which a credit increase is contemplated exceed the total distributions for that fiscal year under the provisions of the Revenue Stabilization Law, §
19-5-101
et seq.
(g)
Title
26 U.S.C. § 151(c)(6)
, as in effect on January 1, 2003, regarding the tax treatment of kidnapped children, is adopted for the purpose of computing Arkansas income tax liability.
Amended by Act 2021EX2, No. 2,§ 10, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2021EX2, No. 1,§ 10, eff. for tax years beginning on or after January 1, 2022.
Amended by Act 2021, No. 483,§ 7, eff. 7/28/2021.
Amended by Act 2019, No. 910,§ 3725, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3724, eff. 7/1/2019.
Amended by Act 2019, No. 910,§ 3723, eff. 7/1/2019.
Amended by Act 2013, No. 1224,§ 3, eff. 8/16/2013.
Acts 1929, No. 118, Art. 3, § 16; Pope's Dig., § 14039; Acts 1941, No. 129, § 1; 1947, No. 135, § 4; 1951, No. 19, § 1; 1957, No. 20, § 2; 1968 (2nd Ex. Sess.), No. 7, § 1; 1969, No. 219, §§ 1, 3; 1969, No. 243, § 1; 1975, No. 994, § 1; 1977, No. 629, §§ 1, 2; 1979, No. 420, § 1; 1983, No. 506, § 1; A.S.A. 1947, §§ 84-2021, 84-2021a, 84-2021.3; Acts 1987, No. 382, § 24; 1993, No. 785, §§ 11, 12; 2001, No. 1819, § 1; 2003, No. 663, § 12; 2005, No. 675, § 14.