TO ADOPT FEDERAL INCOME TAX LAW REGARDING DEPRECIATION AND THE EXPENSING OF PROPERTY; AND TO INCREASE THE AMOUNT ALLOWED FOR THE EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS TO THE AMOUNT ALLOWED UNDER FEDERAL LAW.

HB 1501 aimed to align Arkansas state income tax laws regarding depreciation and the expensing of property with federal income tax provisions. The bill specifically adopted various sections of the U.S. Code (Title 26 U.S.C. §§ 167, 168, and 179) related to how businesses deduct the cost of assets. This change would have increased the amount allowed for immediately expensing certain depreciable business assets on state income tax returns to match federal limits. It directly affected Arkansas businesses and individuals who purchase depreciable property and claim these deductions.