Arkansas 2025 Regular Session

Arkansas House Bill HB1026

Introduced
11/20/24  
Refer
1/13/25  

Caption

To Create The Arkansas Promise Act; And To Create An Income Tax Credit For Tuition Paid For An Eligible Student At A Public Institution Of Higher Education.

Impact

The bill stipulates that to qualify for the tax credit, students must fulfill several requirements, including residency status, completion of the Free Application for Federal Student Aid (FAFSA), and maintaining a minimum grade point average. Furthermore, the bill outlines that the credits can only be claimed for up to four consecutive semesters and includes provisions for refunding any excess credits beyond the taxpayer's income tax liability, which would help lower-income families particularly benefit from the program.

Summary

House Bill 1026, known as the Arkansas Promise Act, proposes to create an income tax credit for tuition paid for eligible students attending public institutions of higher education in Arkansas. This initiative is designed to ease the financial burden of college tuition for residents by allowing taxpayers to claim a credit for tuition expenses incurred for themselves or their dependents, contingent upon meeting certain criteria laid out in the bill. Specifically, the credit applies only to tuition payments not covered by scholarships or grants.

Contention

While the Arkansas Promise Act aims to enhance access to higher education through financial incentives, it may spur discussions around the adequacy of the state's existing funding for education and conflicting views on tax incentives. Supporters advocate for the bill as a means to increase college enrollment and completion rates, vital for the state's economic growth. Conversely, critics may argue that income tax credits fail to address the root issues surrounding college affordability, such as rising tuition costs and limited state funding for public universities.

Companion Bills

No companion bills found.

Previously Filed As

AR SB365

To Create The Arkansas Student Due Process And Protection Act; And To Establish Procedural Protections For Student Conduct Disciplinary Proceedings At Public Two-year And Four-year Institutions Of Higher Education.

AR HB1158

To Create The Early Childhood Education Workforce Quality Incentive Act; And To Create Income Tax Credits For Certain Early Childhood Education Workers And For Eligible Business Childcare Expenses.

AR HB1680

To Create The Arkansas Private Lands Conservation Income Tax Credit Act.

AR SB294

To Create The Learns Act; To Amend Various Provisions Of The Arkansas Code As They Relate To Early Childhood Through Grade Twelve Education In The State Of Arkansas; And To Declare An Emergency.

AR SB491

To Amend Arkansas Law Concerning Employees Of Institutions Of Higher Education; And To Declare An Emergency.

AR HB1382

To Create The Reboot Pilot Program; And To Create An Income Tax Credit For Businesses That Hire Certain Former Offenders.

AR HB1417

To Amend The Arkansas Academic Challenge Scholarship Program Concerning Approved Institutions Of Higher Education; And Concerning The Higher Education Grants Fund Account.

AR SB386

To Repeal The Arkansas River Navigation System Fund; To Provide Additional Funding For The Arkansas Port, Intermodal, And Waterway Development Grant Program Fund; And To Create A Waterways Investment Income Tax Credit.

AR SB478

To Provide Additional Funding For The Arkansas Port, Intermodal, And Waterway Development Grant Program Fund; And To Create A Waterways Investment Income Tax Credit.

AR HB1649

To Amend The Arkansas Student-athlete Publicity Rights Act; And To Declare An Emergency.

Similar Bills

No similar bills found.