Bill > SB423

This bill creates a new tax exemption in Arkansas for education scholarships, awards, and grants received from nonprofit volunteer service organizations. Specifically, the bill allows residents to exclude from their individual income tax any money received from such organizations that is used for three purposes: paying for attendance at an institution of higher education, funding educational or vocational training, or repaying student loans. The tax exemption will become effective for tax years beginning on or after January 1, 2025, which means taxpayers can first claim this exemption on their 2025 tax returns filed in 2026. By creating this exemption, the bill aims to provide financial relief to individuals who receive educational support from nonprofit volunteer service organizations, potentially making higher education and professional training more accessible by reducing the tax burden on these educational awards.

Budget and Finance

https://arkleg.state.ar.us/Bills/Detail?id=sb423&ddBienniumSession=2025%2F2025R