2022 What’s New


Tax Competitiveness and Relief (Act 1 of Third Extraordinary Session of 2022):
Marginal Income Tax rates for 2022 have been amended and the top rate will be reduced to 4.9%.

Law Enforcement Family Relief Check-Off Program (Act 765 of 2O21)
Creates a check-off on lncome Tax forms for donations to the program and trust fund. Effective for taxyears beginning
on or after January 1,2022.

Pass-Through Entity Tax
If you are a member of an entity that participate in Pass-Through Entity Tax include all income from the PET return on the
Individual retrun. Use the AR-OI form to backout the income or losses that were reported on the Pass-Through level.

Inflationary Relief Income - Tax credit (Act 1 of the Third Extraordinary Session of 2022)
Allows for a full year Arkansas resident having a net income up to $101,000 an additional tax credit.

Additional Tax Credit for Qualified Individuals (Act 1 of Second Extraordinary session of 2021)
Allows for an individual taxpayer having a net income up to $24,700 who timely files a tax return an additional tax credit.

Philanthropic lnvestment in Arkansas Kids Program Scholarship Credit (Act 904 ot 2021)
Creates a tax credit for eligible contributions made to a scholarship-granting organization. The total amount of tax credits
awarded in a year shall not exceed $2 million.

Section 179
Arkansas has adopted the most recent Federal changes, for specifics see page 20.

Retired Law Enforcement Cold Case Credit
Creates a Tax credit for retired law enforcement who work cold cases .