Earned Income Tax Credit (EITC)
Arkansas does not currently offer a state-level EITC.
Last Legislative Action:
In 2017, a bill that would have created a state-level EITC made it through a committee vote in the House, but the bill ultimately failed to gain approval of the full House.
- In 2015, legislators introduced a bill to create a state EITC, but the measure failed to pass a committee vote.1
- On March 30, 2011, the Arkansas governor signed into law HB 1056, which created a credit for Heads of Households with two or more dependents, thus exempting all families below the poverty line from paying state income taxes. This closed a loophole in legislation enacted in 2007 to ensure no working poor family had to pay state taxes.
Child Tax Credit (CTC)
Arkansas does not currently offer a state-level CTC.
Child and Dependent Care Tax Credit (CDCTC)
Rate (Fully Refundable):
- 20% of federal CDCTC
Eligibility Requirements: All filers who qualify for the federal CDCTC are eligible for the state credit.
- Taxpayers claim the credit by completing line 39 of form AR1000 and attaching a copy of their federal child and dependent care credit form.
- The refundable credit is only available for care of a child under age six in an “approved child care facility.”
1HB1344, Arkansas State Legislature
2A.C.A. § 26-51-502, 2010 Arkansas Code