Bill > HB1021

This bill creates the Early Childhood Education Workforce Quality Incentive Act, which establishes an income tax credit for early childhood education workers who meet specific qualifications. The tax credit is designed to support and incentivize early childhood educators by providing financial benefits based on their educational credentials and employment in qualifying programs. Specifically, educators can receive tax credits ranging from $1,800 to $3,000 depending on their educational level: $1,800 for those with a Child Development Associate certification or Arkansas Children's Program Administrator Credential, $2,400 for those with an associate degree in early childhood education or a related field, and $3,000 for those with a bachelor's degree or higher in early childhood education or a related field. To be eligible, educators must work in an early childhood education program that meets the Better Beginnings quality rating system of the Department of Education and earn less than the state's minimum salary for K-12 public school teachers. If the tax credit exceeds the taxpayer's income tax liability, the excess will be refunded. Educators must file an attestation form from the Arkansas Professional Development Registry to claim the credit, and the tax credit will be effective for tax years beginning on or after January 1, 2025.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1021&ddBienniumSession=2025%2F2025R