This bill amends the individual income tax laws in Arkansas to create a tax exemption specifically for teachers. It introduces a new section, 26-51-317, which defines a "teacher" as an individual engaged in student instruction in kindergarten through grade twelve (K-12) for more than 70% of their contracted time and employed by either a public school or an open-enrollment charter school in a licensed capacity. The bill allows for an income tax exemption on the first $50,000 of wages received by teachers for their employment.

The effective date for this tax exemption is set for tax years beginning on or after January 1, 2023. This legislation aims to provide financial relief to educators by reducing their taxable income, thereby acknowledging their contributions to the education system.