Stricken language would be deleted from and underlined language would be added to present law. *JLL443* 05/01/2026 8:05:20 AM JLL443 State of Arkansas

Call Item 1 1 95th General Assembly A Bill

2 First Extraordinary Session, 2026

HOUSE BILL 1001 3

4 By: Representatives Eaves, Evans, Maddox, Beaty Jr., Lundstrum, R. Burkes, McAlindon, Henley, 5 Brooks, K. Moore, Pilkington, Underwood, M. Shepherd, Painter, Gazaway, Hollowell, Andrews, 6 Womack, Dalby, K. Brown, Jean, N. Burkes, Cozart, Achor, C. Cooper, A. Brown, Duke, R. Scott 7 Richardson, Childress, Furman, Wooten, Wooldridge, Walker, Ladyman, Long, Tosh, Gramlich, Torres, 8 Steimel, Crawford, Holcomb, Eaton, B. McKenzie, McGrew, J. Moore, Ray, Rose, Bentley, McClure, 9 Milligan, Puryear, M. McElroy, Richmond, Schulz, Vaught, Perry, Unger, S. Meeks, McCollum, Pearce, 10 Hawk, Gonzales, Cavenaugh, Joey Carr, M. Brown, Barker, Wardlaw, L. Johnson, Warren, Lynch, 11 Nazarenko, Eubanks, Beck, Breaux 12 By: Senator J. Dismang 13

14 For An Act To Be Entitled 15 AN ACT TO REDUCE INCOME TAXES; TO REDUCE THE INCOME 16 TAX RATES FOR INDIVIDUALS, TRUSTS, ESTATES, AND 17 CORPORATIONS; AND FOR OTHER PURPOSES. 18

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20 Subtitle 21 TO REDUCE THE INCOME TAX RATES FOR 22 INDIVIDUALS, TRUSTS, ESTATES, AND 23 CORPORATIONS. 24

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26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27

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SECTION 1. Arkansas Code § 26-51-201(a)(4), concerning the income tax 29 imposed on individuals, trusts, and estates, is amended to read as follows: 30

(4) For tax years beginning on or after January 1, 2026: 31

(A) Every resident, individual, trust, or estate having 32 net income less than or equal to ninety-four thousand seven hundred dollars 33 ($94,700) shall determine the amount of income tax due under this subsection 34 in accordance with the table set forth below: 35 From

Less Than or Equal To

Rate 36

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$5,599

0%

1 $5,600

$11,199

2%

2 $11,200

$15,999

3%

3 $16,000

$26,399

3.4% 4 $26,400

$94,700

3.7% 5

(B) Every resident, individual, trust, or estate having 6 net income greater than ninety-four thousand seven hundred dollars ($94,700) 7 shall determine the amount of income tax due under this subsection in 8 accordance with the table set forth below: 9 From

Less Than or Equal To

Rate 10 $0

$4,700

2%

11 $4,701 and above

3.7% 12

(C) Every resident, individual, trust, or estate having 13 net income greater than or equal to ninety-four thousand seven hundred one 14 dollars ($94,701) but not greater than ninety-seven thousand six hundred 15 dollars ($97,600) shall reduce the amount of income tax due as determined 16 under subdivision (a)(4)(B) of this section by deducting a bracket adjustment 17 amount in accordance with the table set forth below: 18 From

Less Than or Equal To

Bracket Adjustment Amount 19 $94,701

$94,800

$290 20 $94,801

$94,900

$280 21 $94,901

$95,000

$270 22 $95,001

$95,100

$260 23 $95,101

$95,200

$250 24 $95,201

$95,300

$240 25 $95,301

$95,400

$230 26 $95,401

$95,500

$220 27 $95,501

$95,600

$210 28 $95,601

$95,700

$200 29 $95,701

$95,800

$190 30 $95,801

$95,900

$180 31 $95,901

$96,000

$170 32 $96,001

$96,100

$160 33 $96,101

$96,200

$150 34 $96,201

$96,300

$140 35 $96,301

$96,400

$130 36

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$96,500

$120 1 $96,501

$96,600

$110 2 $96,601

$96,700

$100 3 $96,701

$96,800

$90 4 $96,801

$96,900

$80 5 $96,901

$97,000

$70 6 $97,001

$97,100

$60 7 $97,101

$97,200

$50 8 $97,201

$97,300

$40 9 $97,301

$97,400

$30 10 $97,401

$97,500

$20 11 $97,501

$97,600

$10 12 $97,601 and over

$0 13

(5) The tables set forth in subdivisions (a)(1)-(3) (a)(1)-(4) 14 of this section shall be adjusted annually in accordance with the method set 15 forth in subsection (d) of this section. 16

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SECTION 2. Arkansas Code § 26-51-205(a), concerning the income tax 18 levied on domestic corporations, is amended to add an additional subdivision 19 to read as follows: 20

(6) For tax years beginning on or after January 1, 2027, every 21 corporation organized under the laws of this state shall pay annually an 22 income tax with respect to carrying on or doing business on the entire net 23 income of the corporation, as now defined by the laws of this state, received 24 by the corporation during the income year, on the following basis: 25

(A) On the first three thousand dollars ($3,000) of net 26 income or any part thereof, one percent (1%); 27

(B) On the next three thousand dollars ($3,000) of net 28 income or any part thereof, two percent (2%); 29

(C) On the next five thousand dollars ($5,000) of net 30 income or any part thereof, three percent (3%); and 31

(D) On net income exceeding eleven thousand dollars 32 ($11,000), four and one-tenths percent (4.1%). 33

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SECTION 3. Arkansas Code § 26-51-205(b), concerning the income tax 35 levied on foreign corporations, is amended to add an additional subdivision 36

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(6) For tax years beginning on or after January 1, 2027, every 2 foreign corporation doing business within the jurisdiction of this state 3 shall pay annually an income tax on the proportion of its entire net income 4 as now defined by the income tax laws of this state, on the following basis: 5

(A) On the first three thousand dollars ($3,000) of net 6 income or any part thereof, one percent (1%); 7

(B) On the next three thousand dollars ($3,000) of net 8 income or any part thereof, two percent (2%); 9

(C) On the next five thousand dollars ($5,000) of net 10 income or any part thereof, three percent (3%); and 11

(D) On net income exceeding eleven thousand dollars 12 ($11,000), four and one-tenths percent (4.1%). 13

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