The Strong Families Act aims to establish an income tax credit for employers who provide paid family and medical leave to qualified employees. The bill introduces a new subchapter to the Arkansas Code, defining key terms such as "family and medical leave," "qualified employee," and "serious health condition." Under the provisions of the Act, employers can receive a tax credit equal to 25% of the wages paid to qualified employees during their family and medical leave, with a maximum credit of $4,000 per employee per tax year. To qualify for this credit, employers must provide at least four weeks of paid leave for full-time employees and a proportional amount for part-time employees, while also adhering to specific policies that protect employees' rights regarding leave.

Additionally, the Act stipulates that the maximum duration for which an employer can claim the tax credit is twelve weeks within a twelve-month period. It allows family and medical leave to run concurrently with other state or federal leave requirements, such as those outlined in the Family and Medical Leave Act of 1993. The provisions of the Strong Families Act will take effect for tax years beginning on or after January 1, 2025.