TO PROVIDE AN INCOME TAX EXEMPTION FOR CERTAIN PAYMENTS BY THE UNITED STATES DEPARTMENT OF AGRICULTURE.

Senate Bill 408, now Act 696, provides an income tax exemption for certain payments received by taxpayers in Arkansas. It specifically exempts payments made by the United States Department of Agriculture (USDA) under the Market Facilitation Program, as it existed on January 1, 2020. The bill also exempts payments from USDA programs authorized by the American Relief Act of 2025. This change means that these specific federal agricultural support payments will not be subject to state income tax for tax years beginning on or after January 1, 2025.