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 A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1708
4
5 By: Representatives Underwood, A. Brown, McCollum, B. McKenzie, Pilkington, Rose
6
7
8 For An Act To Be Entitled
9 AN ACT TO CREATE THE KEEP THE BONUS, AXE THE TAX: THE
10 NO-TAX BONUS ACT; TO EXEMPT A BONUS FROM INCOME TAX;
11 AND FOR OTHER PURPOSES.
12
13
14 Subtitle
15 THE KEEP THE BONUS, AXE THE TAX: THE NO-
16 TAX BONUS ACT.
17
18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
19
20 SECTION 1. DO NOT CODIFY. Title.
21 This act shall be known and may be cited as the "Keep the Bonus, Axe
22 the Tax: The No-Tax Bonus Act".
23
24 SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 3, is
25 amended to add an additional section to read as follows:
26 26-51-317. Bonuses.
27 (a) As used in this section, "bonus" means a payment made to an
28 employee that:
29 (1) Is in addition to the employee's regular or overtime wages;
30 (2) Is nonrecurring;
31 (3) Does not increase the employee's base rate of pay; and
32 (4) Includes no commitment for payment in a subsequent year.
33 (b) A bonus is exempt from the income tax levied under this chapter.
34
35 SECTION 3. EFFECTIVE DATE. Section 1 of this act is effective for tax
36 years beginning on or after January 1, 2026.
*JLL275* 03/06/2025 4:19:38 PM JLL275Every fact on this page links to its source, starting with the official bill record.