§ 21-13-111 - State income tax deductions. - Arkansas Statutes

21-13-111. State income tax deductions.

(a) In computing net income for the purpose of the Arkansas income tax levied by 26-51-201, there shall be allowed as deductions, in addition to all other deductions allowed by law:

(1) (A) A deduction for mileage for necessary travel in connection with voluntary service to a department, at the rate provided by law or appropriate travel regulation applicable to travel made by paid employees of a department for a volunteer who uses his or her personal motor vehicles for official travel, for which the volunteer has not received reimbursement from public funds; and

(B) A deduction for unreimbursed meals, lodging, and transportation other than mileage as noted above, or other out-of-pocket expenses incurred by the volunteer in voluntary service to a department for which he or she has not received reimbursement from public funds, but which would be reimbursable if incurred by paid employees of a department acting within the scope of their employment;

(2) (A) A deduction for mileage traveled in the use of a personal motor vehicle and for expenses incurred for meals, lodging, and transportation expenses other than mileage, and other out-of-pocket expenses incurred by a volunteer for volunteer work for a charitable organization for which reimbursement has not been received shall be allowed in the same amount and for the same purposes as now allowed under the state income tax laws applicable to business expenses.

(B) As used in subdivision (a)(2) of this section, "charitable organization" shall include, in addition to a department, any private nonprofit corporation, association, or group which is recognized by the laws of this state as performing a nonprofit charitable purpose benefiting citizens of this state.

(b) It is the purpose and intent of this section that deduction for expenses incurred by volunteers in connection with the performance of voluntary services for charitable organizations in this state and for public agencies and departments as authorized in this chapter shall be deductible in computing net income under the Arkansas individual income tax law, for the same purposes and in the same manner as now provided by the state income tax law applicable to business expenses in computing net income for state income tax purposes.