Overview

• The top individual income tax rate is reduced from 4.4% to 3.9%, and the corporate rate from 4.8% to 4.3%.
• The homestead property tax credit is raised from $425 to $500, effective retroactively from January 1.
• The tax cuts are projected to cost $483 million in the first year and $322 million annually thereafter.
• Arkansas is expected to end the fiscal year with a $708 million surplus, ensuring continued funding for essential programs.
• Opponents argue that the tax cuts favor higher earners and call for more investment in healthcare and social services.