Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1026 3
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By: Representative A. Collins 5
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For An Act To Be Entitled 8
AN ACT TO CREATE THE ARKANSAS PROMISE ACT; TO AMEND 9
THE INDIVIDUAL INCOME TAX LAWS; TO CREATE AN INCOME 10
TAX CREDIT FOR TUITION FOR AN ELIGIBLE STUDENT AT A 11
PUBLIC INSTITUTION OF HIGHER EDUCATION; AND FOR OTHER 12
PURPOSES. 13
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Subtitle 16
TO CREATE THE ARKANSAS PROMISE ACT; AND 17
TO CREATE AN INCOME TAX CREDIT FOR 18
TUITION PAID FOR AN ELIGIBLE STUDENT AT 19
A PUBLIC INSTITUTION OF HIGHER 20
EDUCATION. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. Arkansas Code Title 26, Chapter 51, Subchapter 5, is 25
amended to add an additional section to read as follows: 26
26-51-518. Arkansas Promise Act — Higher education tuition income tax 27
credit — Definition. 28
(a) This section shall be known and may be cited as the "Arkansas 29
Promise Act". 30
(b) As used in this section, "tuition" means charges levied for 31
attendance at a public two -year or four-year institution of higher education. 32
(c) There is allowed an income tax credit against the income tax 33
imposed by this chapter in the amount paid by a taxpayer as tuition for the 34
taxpayer or the taxpayer's dependent not including tuition paid through any 35
scholarship or grant, subject to the limitations of subsection (d) of this 36 HB1026
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section. 1
(d) To claim the income tax credit allowed by this section, the 2
taxpayer must have paid tuition for a student that: 3
(1) Is a resident with an in -state tuition classification; 4
(2)(A) Has completed the Free Application for Federal Student 5
Aid (FAFSA) or a subsequent application required by the United States 6
Department of Education for federal financial aid for the semester or term 7
for which the income tax credit is claimed. 8
(B) The income tax credit allowed by this section shall 9
only be claimed if the application under subdivision (d)(2)(A) reflects an 10
adjusted gross income, as defined in 20 U.S.C. § 1070a, of up to ninety 11
thousand dollars ($90,000); 12
(3) Is classified as degree - or credential-seeking pursuing a 13
certificate, associate degree, or bachelor's degree; 14
(4) Initially enrolled in the public two -year or four-year 15
institution of higher education for which the income tax credit is claimed 16
within two (2) years of graduating from high school or obtaining a high 17
school equivalency diploma; 18
(5) Has accumulated fewer than sixty -five (65) credit hours 19
prior to the first semester attended at the public two -year or four-year 20
institution of higher education for which the income tax credit is claimed; 21
(6) Has completed at least six (6) credit hours at the end of 22
each semester for which the income tax credit is claimed; and 23
(7) Has maintained a grade point average of at least 2.5 on a 24
4.0 scale for each semester for which the tax credit is claimed; 25
(e) The income tax credit allowed by this section may be claimed for 26
no more than four (4) consecutive academic semesters. 27
(f) If the amount of the income tax credit allowed under this section 28
exceeds the taxpayer's income tax liability, the excess shall be refunded to 29
the taxpayer. 30
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SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective for tax 32
years beginning on or after January 1, 2025. 33
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