House Bill 1026, titled the "Arkansas Promise Act," from Representative Andrew Collins proposes amendments to Arkansas's individual income tax laws by introducing a tax credit for tuition paid for eligible students attending public institutions of higher education. Below is a summary of the provisions stated in the bill:

1. Title and Scope:

   • Known as the "Arkansas Promise Act."
   • Applies to tuition charges for attending a public two-year or four-year institution of higher education.

2. Tax Credit:

   • Allows an income tax credit for tuition paid by a taxpayer for themselves or a dependent, excluding amounts covered by scholarships or grants.
   • The credit is refundable if it exceeds the taxpayer's liability.

3. Eligibility Criteria:

   • The student must:
     1. Be classified as a resident eligible for in-state tuition.
     2. Complete the FAFSA (or an equivalent federal financial aid application) with an adjusted gross income of up to $90,000.
     3. Be pursuing a certificate, associate degree, or bachelor's degree.
     4. Initially enroll within two years of completing high school or earning a high school equivalency diploma.
     5. Have fewer than 65 credit hours before beginning at the institution.
     6. Complete at least six credit hours per semester.
     7. Maintain a minimum GPA of 2.5 on a 4.0 scale.

4. Limitations:

   • The tax credit may be claimed for up to four consecutive academic semesters.

5. Effective Date:

   • Applicable for tax years starting January 1, 2025.