This bill amends the Arkansas income tax law to establish a refundable tax credit specifically for qualified volunteer firefighters. The new section, designated as 26-51-517, defines a "qualified volunteer firefighter" as an individual who actively participates in firefighting activities, earns less than $5,000 in compensation from their fire department during the taxable year, and completes a form developed by the Department of Finance and Administration. The bill allows these qualified firefighters to receive a tax credit of $500 against their income tax liability, with any excess credit refunded to the taxpayer.

Additionally, the Department of Finance and Administration is tasked with creating a form that requires proof of completion of specific firefighting courses and signed approval from the firefighter's chief or relevant authority. The provisions of this act will take effect for tax years beginning on or after January 1, 2023.