The House Revenue and Taxation Committee on Thursday rejected a bill that would create a state earned income tax credit equal to 10 percent of the federal earned income tax credit for low- and middle-income workers.
House Bill 1418 by Rep. Tippi McCullough, D-Little Rock, is projected to reduce state revenue by $76.7 million in fiscal 2020 that starts July 1, the state Department of Finance and Administration reported. The forecast is based on Internal Revenue Service information that shows that 287,000 Arkansas taxpayers received the federal earned income tax credit in 2017.
The House committee then endorsed Senate Bill 196 by Sen. Keith Ingram, D-West Memphis, to provide tax incentives for investments in the state's 85 distressed Opportunity Zones.
Support journalism that digs deeper into topics that matter most to Arkansans. Donate today to preserve the quality and integrity of local journalism.