Arkansas Governor Signs Law Allowing Businesses to Reduce Federal Tax Burden by Electing Entity-Level Taxation

The Arkansas Governor March 15 signed a law allowing businesses to reduce their federal tax burden by electing entity-level taxation for corporate income and individual income tax purposes. The law includes measures: 1) creating the Elective Pass-Through Entity Tax Act and imposing a tax on pass-through entities; 2) providing an exclusion from gross income to members of affected business entities; 3) allowing business entities to elect to be subject to the tax and requiring the election on an annual basis; 4) requiring affected entities to pay the tax before the 15th day of the fourth month of the taxable year; ...