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: H3/17/25 H3/31/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 HOUSE BILL 1698
4
5 By: Representative Torres
6 By: Senator J. Petty
7
8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING THE INCOME TAX
10 TREATMENT OF EMPLOYER CONTRIBUTIONS FOR AN EMPLOYEE'S
11 MEMBERSHIP IN A HEALTHCARE SHARING MINISTRY OR OTHER
12 MEDICAL COST-SHARING PROGRAM; TO EXCLUDE EMPLOYER
13 CONTRIBUTIONS FOR AN EMPLOYEE'S MEMBERSHIP IN A
14 HEALTHCARE SHARING MINISTRY OR OTHER MEDICAL COST-
15 SHARING PROGRAM FROM INCOME TAX; TO ALLOW AN INCOME
16 TAX DEDUCTION FOR AN EMPLOYER'S CONTRIBUTION FOR AN
17 EMPLOYEE'S MEMBERSHIP IN A HEALTHCARE SHARING
18 MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM; AND
19 FOR OTHER PURPOSES.
20
21
22 Subtitle
23 TO AMEND THE LAW CONCERNING THE INCOME
24 TAX TREATMENT OF EMPLOYER CONTRIBUTIONS
25 FOR AN EMPLOYEE'S MEMBERSHIP IN A
26 HEALTHCARE SHARING MINISTRY OR OTHER
27 MEDICAL COST-SHARING PROGRAM.
28
29 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
30
31 SECTION 1. Arkansas Code � 26-51-404(b), concerning exclusions from
32 "gross income" under the Income Tax Act of 1929, is amended to add an
33 additional subdivision to read as follows:
34 (36)(A) Contributions by an employer for an employee's
35 membership in a healthcare sharing ministry as defined in � 23-60-104 or
36 other medical cost-sharing program.
*JLL249* 03-31-2025 11:24:33 JLL249
As Engrossed: H3/17/25 H3/31/25 HB1698
1 (B) A self-employed person may claim the exclusion
2 provided under subdivision (b)(36)(A) of this section for contributions for
3 his or her own membership in a healthcare sharing ministry as defined in �
4 23-60-104 or other medical cost-sharing program.
5 (C) As used in this subdivision (b)(36), "medical cost-
6 sharing program" means a healthcare funding arrangement in which members
7 contribute money to help cover each other's medical expenses.
8
9 SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 4, is
10 amended to add an additional section to read as follows:
11 26-51-462. Deduction -- Employer contributions for employee's
12 membership in healthcare sharing ministry or other medical cost-sharing
13 program.
14 (a) In computing net income for the purposes of this chapter, there is
15 allowed as a deduction in addition to all other deductions allowed by law for
16 an employer's contribution for an employee's membership in a health care
17 sharing ministry as defined in � 23-60-104 or other medical cost-sharing
18 program.
19 (b) A self-employed person may claim the deduction provided under this
20 section for contributions for his or her own membership in a healthcare
21 sharing ministry as defined in � 23-60-104 or other medical cost-sharing
22 program.
23 (c) As used in this section, "medical cost-sharing program" means a
24 healthcare funding arrangement in which members contribute money to help
25 cover each other's medical expenses.
26
27 SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective
28 for tax years beginning on or after January 1, 2026.
29
30 /s/Torres
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2 03-31-2025 11:24:33 JLL249Every fact on this page links to its source, starting with the official bill record.