LITTLE ROCK, Ark. (AP) — Arkansas lawmakers on Wednesday gave initial approval to the largest tax cut in the state’s history, as legislative leaders hoped to wrap up a special session without taking up a Texas-style abortion ban or other items.
The Senate and House approved identical versions of the tax cut legislation, clearing the way for final votes on the plan in both chambers on Thursday. Republican Gov. Asa Hutchinson called the special session this week to take up the tax cut plan, which is estimated to cost the state nearly $500 million a year once fully implemented in 2026.
The proposal calls for gradually cutting the top individual income tax rate from 5.9% to 4.9% in 2025. It also includes corporate income tax cuts and a low-income tax credit.
Hutchinson and legislative leaders have said they hoped to keep the session focused primarily on the tax cut legislation, though GOP lawmakers have said they hoped to expand the scope to include the abortion ban and other bills.
It will take a two-thirds vote of the House and Senate to extend the session and consider bills not on the agenda.
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