Bill > HB1026

This bill establishes the Arkansas Promise Act, which creates a new income tax credit for taxpayers who pay tuition for eligible students at public two-year and four-year higher education institutions. To qualify for the tax credit, the student must be an Arkansas resident with in-state tuition classification, have completed the Free Application for Federal Student Aid (FAFSA) with a household adjusted gross income of up to $90,000, be pursuing a certificate, associate, or bachelor's degree, have enrolled in the institution within two years of high school graduation, have fewer than 65 previously accumulated credit hours, complete at least 6 credit hours per semester, and maintain a minimum 2.5 grade point average. The tax credit can be claimed for up to four consecutive academic semesters and is fully refundable if the credit amount exceeds the taxpayer's income tax liability. The bill will take effect for tax years beginning on or after January 1, 2025, and aims to provide financial support for students and families pursuing higher education in Arkansas by offering a tax incentive for tuition payments.

Budget and Finance

https://www.arkleg.state.ar.us/Bills/Detail?id=hb1026&ddBienniumSession=2025%2F2025R