New Arkansas Laws Taking Effect in 2026: What You Need to Know
Beginning January 1, 2026, Arkansans can expect several new laws to affect things like SNAP benefits, unemployment, business incentives, and even grocery shopping. Below are a few of the most notable laws going into effect at the beginning of 2026.
Act 631: Employment and Work Requirements
Beginning January 1, 2026, Act 631, an amendment to the Workforce Experience Opportunities Act of 2025, will change the way SNAP recipients can meet work requirements. Under this new law, individuals using SNAP benefits will be able to meet work requirements by volunteering at any public entity that receives state funding. This change is intended to provide more flexibility for SNAP recipients, increase employment readiness and income potential, and improve self-sufficiency. By allowing volunteer work to count toward the requirement, the state hopes to reduce barriers and help families find stable employment.
Act 708: Modified Requirements for Unemployment Benefits
Starting January 2, 2026, Act 708 will modify unemployment benefit requirements under the Division of Workforce Services. Some changes include mandatory reporting of at least five work-search contacts per week, enhanced job-matching through the state job board, and additional required actions for individuals eligible for unemployment benefits. An employment lawyer can help you understand any claims related to unemployment benefits.
Act 881: Income Tax Credits for Corporations
Effective January 1, 2026, Act 881 introduces financial incentives for corporations that choose to move their headquarters to Arkansas. Eligible companies could receive an income tax credit up to 50 percent of payroll for new, full-time employees, a tax credit of up to 10 percent for the corporation, and a possible additional 10 percent credit awarded at the discretion of the Arkansas Economic Development Commission director. This act reflects Arkansas’s ongoing attempts to attract new businesses. A business attorney can answer your questions about this new law.
New Farmers’ Law
Also taking effect in 2026 is the New Farmers Law, designed to streamline tax exemptions for eligible Arkansas farmers. The law will provide farmers with a sales tax identification card, replacing the old exemption certificate. Farmers can present this card when purchasing farming products, making the tax exemption process more convenient. A farm and food law attorney can help you understand how this new law affects your farm and business.
Act 1008: State Sales Tax Removed from Groceries
One change that will benefit nearly every Arkansan is Act 1008, which eliminates the state’s 0.125 percent sales tax on groceries. While local sales taxes will still apply, the removal of the state portion offers a welcome reduction in food costs.
Contact The Law Group of Northwest Arkansas PLLC Today
Contact The Law Group of Northwest Arkansas PLLC to schedule a free, initial consultation with one of our attorneys to learn how the new Arkansas laws may affect you, your family, and your business. You can also contact us by using our online contact form or calling 479-316-3760.
Disclaimer: The Law Group of Northwest Arkansas PLLC (TLGNWA) provides general information about a variety of legal issues on this website as a public service. Information contained herein should not be considered legal advice on any specific matter. The use of information and reference links contained in this website do not constitute contractual, de facto, implied or any other form of attorney-client privilege or relationship. TLGNWA is not responsible for the use of information, forms, links, or documents contained in this website.
Due to the frequency and speed of changing laws, no guarantee is made as to the current validity or applicability of the information contained herein. Though we try to update information often, we recommend that readers with questions investigate current law or contact TLGNWA directly through our contact form or by calling (479) 334-3411.