Arkansas HB1538: TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION

What the bill says

An act to be entitled an act to amend the law concerning the net operating loss income tax deduction; to increase the carryforward period for the net operating loss income tax deduction; and for other purposes. subtitle to amend the law concerning the net operating loss income tax deduction; and to increase the carry-forward period for the net operating loss income tax deduction.

From the introduced text:

An Act To Be Entitled AN ACT TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; TO INCREASE THE CARRYFORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND FOR OTHER PURPOSES. Subtitle TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. DO NOT CODIFY. Legislative findings. The General Assembly finds that: (1) The state's income tax laws should be amended to modernize and simplify the tax code, increase Arkansas's competitiveness, create jobs, and ensure fairness to all taxpayers; (2) Net operating loss carry-forward provisions promote tax neutrality by reducing tax burdens on businesses with cyclical income streams or exposure to economic downturns, regardless of size or age; (3) Longer net operating loss carry-forward provisions promote longevity and facilitate future growth in start-up businesses, expansion of existing operations, and new facility locations; and (4) Federal net operating losses are carried forward indefinitely up to eighty percent (80%) in one (1) year, and many states *JLL216* 02/20/2025 7:07:30 AM JLL216 HB1538 conform to the federal law or provide uncapped twenty-year carry-forward periods, while Arkansas is in the minority with a ten-year carry-forward period. SECTION 2. Arkansas …

Read the full official text

Sponsors

• David Ray (R, 69) · primary sponsor

Latest actions

1. May 5, 2025: Died in House Committee at Sine Die adjournment.
2. February 20, 2025: Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE
3. February 20, 2025: Filed

Common questions

What is HB1538?

HB1538 is a bill in the Arkansas Legislature (95th General Assembly (2025 Regular)): TO AMEND THE LAW CONCERNING THE NET OPERATING LOSS INCOME TAX DEDUCTION; AND TO INCREASE THE CARRY-FORWARD PERIOD FOR THE NET OPERATING LOSS INCOME TAX DEDUCTION.

What does HB1538 do?

In its own words: An act to be entitled an act to amend the law concerning the net operating loss income tax deduction; to increase the carryforward period for the net operating loss income tax deduction; and for other purposes. subtitle to amend the law concerning the net operating loss income tax deduction; and to increase the carry-forward period for the net operating loss income tax deduction.

What is the status of HB1538?

Failed as of May 5, 2025. Latest action: Died in House Committee at Sine Die adjournment. (May 5, 2025).

Who sponsored HB1538?

David Ray (R, 69).

Where is the official record for HB1538?

On the Arkansas Legislature website: https://www.arkleg.state.ar.us/Bills/Detail?ddBienniumSession=2025%2F2025R&measureno=HB1538