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.

Fiscal Impact Statement Bill: HB1026 Bill Subtitle: 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. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Collins Basic Change: HB1026 creates the Arkansas Promise Act, which provides a refundable income tax credit for amounts paid by a taxpayer as tuition for the taxpayer or the taxpayer's dependent under certain conditions. The bill defines "tuition" as "charges levied for attendance at a public two-year or four-year institution of higher education." Tuition amounts paid by scholarship or grant are not to be included. To be eligible for the tax credit, the taxpayer must have paid tuition for a student that: • Is a resident with an in-state tuition classification; • Has completed the Free Application for Federal Student Aid (FAFSA) for the semester or term for which the tax credit is claimed and the FAFSA application shows adjusted gross income of less than $90,000; • Is classified as degree- or credential-seeking pursuing a certif