The Early Childhood Education Workforce Quality Incentive Act aims to enhance the quality of early childhood education in Arkansas by providing income tax credits for certain early childhood education workers and businesses that incur childcare expenses. The bill introduces a new section to the Arkansas Code that establishes an early childhood education workforce quality incentive credit for program directors, teachers, and instructional staff who work in programs meeting the Better Beginnings quality rating system and earn below the state's minimum salary for K-12 teachers. The tax credits range from $1,800 to $3,000 based on the worker's qualifications, and any excess credit beyond the taxpayer's liability will be refunded.

Additionally, the bill outlines provisions for businesses that incur eligible childcare expenses, allowing them to receive tax credits based on the quality rating of the childcare facility they utilize. The credit percentage varies from 5% to 25% depending on the facility's rating, with a cap of $50,000 on eligible expenses. The act is set to take effect for tax years beginning on or after January 1, 2023.