LITTLE ROCK – Most laws from the regular 2025 legislative session become effective 90 days after the Legislature adjourns sine die, some include language that make them effective on a certain date, and some officially became law on January 1st.
One of the most impactful new laws is Act 1008, the removal of 0.125% sales tax on groceries. This removes language regarding the tax from state laws; however, local sales taxes will remain unchanged.
Another law, Act 631 allows for those using SNAP benefits to meet work requirements by volunteering at any public entity that receives state funding.
Act 708 changes an unemployment benefits law that requires a person receiving benefits to report at least five work search contacts weekly and the state job board should match open jobs with those on benefits.
Legislators also passed, Act 427, the Strengthen Arkansas Homes Program. This allows state officials to provide financial grants to certain property owners and nonprofit organizations to assist with and promote the mitigation of losses to insurable dwellings due to catastrophic wind events.
Act 875 increases the disability onset age to 46 years old instead of 26 years of age. This means that if the disability occurred before that age, they can be eligible for the Achieving a Better Life Experience Program. That program allows individuals to create a “tax-advantaged savings account” to cover qualified expenses.
Act 748 allows for a law enforcement agency that trains an officer to seek reimbursement from each law enforcement agency that subsequently employs the law enforcement officer within 24 months after the completion of the training.
Act 880 allows for property owned by a trust or limited liability company to qualify as a homestead for purposes of the property tax exemption for disabled veterans and surviving spouses and minor dependent children of disabled veterans in certain circumstances.
Another new law creates an income tax credit to encourage corporations to relocate their headquarters to Arkansas. Act 881 allows for a corporation that relocates with an income tax credit of up to 50% of the payroll for new full-time permanent employees. The corporation would have to meet certain requirements to be eligible. The director of the Arkansas Economic Development Commission may also offer a tax credit of up to 10% to the company.
Several new changes to healthcare laws will also be effective January 1, 2026, including:
Act 866 mandates coverage for baby deliveries in a licensed birthing center under a health benefit plan.
Another law, Act 424, mandates coverage for all modalities, types, and techniques of healthcare services provided for breast reconstruction surgeries.
Legislators approved Act 628, which mandates coverage for treatment of diseases and conditions caused by severe obesity under a health benefit plan on and after January 1, 2026, and establishes requirements for a covered person to qualify for coverage. The law applies to those 18 years old or older.
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