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2025R: HB1708
THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT.
Latest action: Died in House Committee at Sine Die adjournment.
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| Sponsor | Role |
|---|---|
| Underwood | lead |
| A. Brown | cosponsor |
| B. McKenzie | cosponsor |
| McCollum | cosponsor |
| Pilkington | cosponsor |
| Rose | cosponsor |
| When | Chamber | Action |
|---|---|---|
| Mar 6, 2025, 4:52 p.m. CT | House | Filed |
| Mar 6, 2025, 5:18 p.m. CT | House | Read the first time, rules suspended, read the second time and referred to the Committee on REVENUE & TAXATION- HOUSE |
| May 5, 2025, 10:39 a.m. CT | House | Died in House Committee at Sine Die adjournment. |
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Fiscal impact
DFA1 · Mar 31, 2025
Fiscal Impact Statement
Bill: HB1708
Bill Subtitle: THE KEEP THE BONUS, AXE THE TAX: THE NO-TAX BONUS ACT.
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Sponsors:
Reps. Underwood, A. Brown, McCollum, McKenzie, Pilkington, and Rose
Basic Change:
HB1708 creates the "Keep the Bonus, Axe the Tax: The No-Tax Bonus Act" to provide a state income
tax exemption for a bonus. The term "bonus" is defined as a payment made to an employee that:
• Is in addition to the employee's regular or overtime wages;
• Is nonrecurring;
• Does not increase the employee's base rate of pay; and
• Does not include a commitment for payment in a subsequent year.
HB1708 is effective for tax years beginning on or after January 1, 2026.
Fiscal Impact:
FY2026 - $16.3M General Revenue Reduction
FY2027 - $32.6M General Revenue Reduction
[ Fiscal impact was estimated using the average income in Arkansas ($51,250) multiplied by the
average bonus percentage (2.8%) to arrive at the average bonus of $1,435. Potentially affected
Arkansas taxpayers were 650,000 who receive various types of bonuses: longevity bonuses, hiring
bonuses, end
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Last checked Nov 12, 2026, 4:48 p.m. CT.
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