On Wednesday, June 1, multiple agriculture and forestry groups in Arkansas, including the Ag Council, sent a joint letter to Governor Asa Hutchinson urging consideration of utilizing state surplus reserves for business tax relief in the form of providing greater conformity with federal tax laws relating to depreciation deductions for farms and small to medium sized businesses, particularly for Section 179, which provides deductions for newly purchased machinery and equipment put into service for the business. The letter noted that such tax reform and relief would simplify the tax filings for businesses, increase competitiveness with other states, provide meaningful relief against inflation, and help stimulate the economy to reduce recessionary risks and job losses.
Governor Hutchinson and legislators continue to meet to explore potential uses of surplus revenues, and a range of policies have been discussed including conformity on depreciation deductions to be in line with changes adopted by Congress in 2017 under the Jobs and Tax Cut Act (JCTA). Any changes to tax law would require the Governor to call a special session to consider such policy proposals.
More below:
Arkansas Ag Group's Letter to Governor
https://www.arkansasonline.com/news/2022/jun/03/hutchinson-favor-action-on-tax-relief/
https://www.arkansasonline.com/news/2022/jun/05/hutchinson-supports-proposal-to-raise-minimum/