Arkansas House Bill 1021 from Representative Andrew Collins would create a new income tax credit for certain early childhood education workers.

Here's a summary:

• Income Tax Credit: The bill establishes an income tax credit for qualifying early childhood education program directors, teachers, and instructional staff.
• Eligibility Requirements: To qualify for the credit, individuals must:
  • Be employed in an early childhood education program that meets the standards of the "Better Beginnings" quality rating system.
  • Earn less than the state's minimum salary for K-12 public school teachers.
• Credit Amounts: The amount of the credit varies based on the individual's level of education and certification:
  • Child Development Associate certification: $1,800
  • Arkansas Children's Program Administrator Credential: $1,800
  • Associate degree in early childhood education or related field: $2,400
  • Bachelor's degree or higher in early childhood education or related field: $3,000
• Refundable Credit: If the tax credit exceeds the taxpayer's income tax liability, the excess will be refunded to them.
• Claiming the Credit: Taxpayers must file an attestation form provided by the Arkansas Professional Development Registry with their income tax return to verify their eligibility.
• Effective Date: The tax credit will be effective for tax years beginning on or after January 1, 2025.