Arkansas HB1708: THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT

What the bill says

An act to be entitled an act to create the keep the bonus, axe the tax: the no-tax bonus act; to exempt a bonus from income tax; and for other purposes. subtitle the keep the bonus, axe the tax: the notax bonus act.

From the introduced text:

An Act To Be Entitled AN ACT TO CREATE THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT; TO EXEMPT A BONUS FROM INCOME TAX; AND FOR OTHER PURPOSES. Subtitle THE KEEP THE BONUS, AXE THE TAX: THE NOTAX BONUS ACT. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: SECTION 1. DO NOT CODIFY. Title. This act shall be known and may be cited as the "Keep the Bonus, Axe the Tax: The No-Tax Bonus Act". SECTION 2. Arkansas Code Title 26, Chapter 51, Subchapter 3, is amended to add an additional section to read as follows: 26-51-317. Bonuses. (a) As used in this section, "bonus" means a payment made to an employee (2) Is nonrecurring; (3) Does not increase the employee's base rate of pay; and (4) Includes no commitment for payment in a subsequent year. (b) A bonus is exempt from the income tax levied under this chapter. SECTION 3. EFFECTIVE DATE. Section 1 of this act is effective for tax years beginning on or after January 1, 2026. *JLL275* 03/06/2025 4:19:38 PM JLL275

Read the full official text

Sponsors

• Kendon Underwood (R, 16) · primary sponsor
• Alyssa Brown (R, 41)
• Austin McCollum (R, 8)
• Brit McKenzie (R, 7)
• Aaron Pilkington (R, 45)
• Ryan Rose (R, 48)

Latest actions

1. May 5, 2025: Died in House Committee at Sine Die adjournment.
2. March 6, 2025: Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE
3. March 6, 2025: Filed

Common questions

What is HB1708?

HB1708 is a bill in the Arkansas Legislature (95th General Assembly (2025 Regular)): THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT.

What does HB1708 do?

In its own words: An act to be entitled an act to create the keep the bonus, axe the tax: the no-tax bonus act; to exempt a bonus from income tax; and for other purposes. subtitle the keep the bonus, axe the tax: the notax bonus act.

What is the status of HB1708?

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

Who sponsored HB1708?

Kendon Underwood (R, 16), with 5 co-sponsors.

Where is the official record for HB1708?

On the Arkansas Legislature website: https://www.arkleg.state.ar.us/Bills/Detail?ddBienniumSession=2025%2F2025R&measureno=HB1708