Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H3/18/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 HOUSE BILL 1540
4
5 By: Representatives J. Mayberry, K. Brown
6 By: Senator Crowell
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE INCOME TAX CREDIT AND THE INCOME
10 TAX DEDUCTION RELATED TO MAINTAINING, SUPPORTING, AND
11 CARING FOR AN INDIVIDUAL WITH A DISABILITY; TO AMEND
12 AND INCREASE THE INCOME TAX CREDIT ALLOWED FOR
13 MAINTAINING, SUPPORTING, AND CARING FOR AN INDIVIDUAL
14 WITH A DEVELOPMENTAL DISABILITY; TO REPEAL THE INCOME
15 TAX DEDUCTION ALLOWED FOR MAINTAINING, SUPPORTING,
16 AND CARING FOR AN INDIVIDUAL WITH A TOTAL AND
17 PERMANENT DISABILITY; AND FOR OTHER PURPOSES.
18
19
20 Subtitle
21 TO AMEND THE INCOME TAX CREDIT AND THE
22 INCOME TAX DEDUCTION RELATED TO
23 MAINTAINING, SUPPORTING, AND CARING FOR
24 AN INDIVIDUAL WITH A DISABILITY.
25
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
27
28 SECTION 1. Arkansas Code � 26-51-418 is repealed.
29 26-51-418. Deductions -- Child with disability -- Definitions.
30 (a) In addition to any other state income tax deduction permitted by
31 law, a taxpayer in this state who is maintaining, supporting, and caring for
32 a totally and permanently disabled child in his or her home shall be
33 permitted a deduction on his or her Arkansas income taxes of five hundred
34 dollars ($500) for each income year that the taxpayer maintains, supports,
35 and cares for such totally and permanently disabled child.
36 (b) As used in this section:
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1 (1) "Child" means a natural or adopted child of the taxpayer;
2 and
3 (2)(A) "Totally and permanently disabled" means any child who is
4 unable to engage in any substantial gainful activity by reason of any
5 medically determinable physical or mental impairment which can be expected to
6 result in death or which has lasted or can be expected to last for a
7 continuous period of not less than twelve (12) months.
8 (B) A physical or mental impairment is an impairment that
9 results from anatomical, physiological, or psychological abnormalities which
10 are demonstrable by medically acceptable clinical or laboratory diagnostic
11 techniques.
12 (c) The Secretary of the Department of Finance and Administration may
13 adopt appropriate rules to carry out the purpose and intent of this section
14 and to prevent abuse of the deduction provided for in this section.
15
16 SECTION 2. Arkansas Code � 26-51-503 is amended to read as follows:
17 26-51-503. Support of a child an individual with a developmental
18 disability -- Definitions.
19 (a) In addition to the state income tax credit permitted by � 26-51-
20 501(a) and (b), any taxpayer in this state who is maintaining, supporting,
21 and caring for an individual with a diagnosis of a developmental disability
22 in the taxpayer's home is permitted, in addition to all other income tax
23 credits, a credit of five hundred dollars ($500) one thousand dollars
24 ($1,000) for each income year for that individual.
25 (b)(1) Any person wishing to take advantage of this tax credit must
26 have certification by a licensed physician, licensed psychologist, or
27 licensed psychological examiner, licensed advanced practice registered nurse,
28 or licensed physician assistant that the individual has a diagnosis of a
29 developmental disability.
30 (2) A certification provided before January 1, 2025, on the form
31 required by the Department of Finance and Administration under this section
32 is effective for a person to take advantage of the tax credit allowed under
33 this section.
34 (c) As used in this section:
35 (1) "Diagnosis of a developmental disability" means a disability
36 of a person that:
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1 (A) Is attributable to:
2 (i) An intellectual disability, cerebral palsy,
3 epilepsy, spina bifida, Down syndrome, or autism;
4 (ii) Another condition of the person found to be
5 closely related to an intellectual disability because the condition results
6 in an impairment of general intellectual functioning or adaptive behavior
7 similar to that of a person with an intellectual disability or requires
8 treatment and services similar to that required for a person with an
9 intellectual disability; or
10 (iii) Dyslexia resulting from a disability or
11 condition described in subdivision (c)(1)(A)(i) or subdivision (c)(1)(A)(ii)
12 of this section;
13 (B) Originates before the person reaches twenty-two (22)
14 years of age;
15 (C) Has continued or can be expected to continue
16 indefinitely; and
17 (D) Constitutes a substantial handicap to the person's
18 ability to function without appropriate support services, including without
19 limitation:
20 (i) Planned recreational activities;
21 (ii) Medical services such as physical therapy and
22 speech therapy; and
23 (iii) Possibilities for sheltered employment or job
24 training "Developmental disability" means the same as defined in 42 U.S.C. �
25 15002, as it existed on January 1, 2025; and
26 (2) "Individual" means a child of the taxpayer's blood, an
27 adopted child, or a dependent within the meaning of � 26-51-501(a)(3)(B).
28
29 SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective
30 for tax years beginning on or after January 1, 2025.
31
32 /s/J. Mayberry
33
34
35
36
3 03-18-2025 11:05:37 JLL136Every fact on this page links to its source, starting with the official bill record.