On Wednesday, the Arkansas General Assembly approved new tax cuts aimed at providing inflation relief to Arkansans and Arkansas businesses. Included in the legislation (now Act 2) was a section that brings the state into conformity with the federal Section 179 deducation amounts for depreciation of qualified business purchases of machinery and equipment put into service.
This provision was a top tax policy priority for the Ag Council and other agricultural organizations in Arkansas. On June 1, the Ag Council joined several other statewide agriculture organizations in urging the governor to include section 179 conformity in any special session aimed at tax and inflation relief (letter).
In addition to the increased Section 179 tax deductions, the legislation aslo included accelerated income tax cuts for individuals and businesses, and one-time tax credits for income tax earners. Most tax provisions will cover the 2022 tax year, which began January 1, 2022.