The proposed legislation, known as 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 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, along with a policy that protects employees' rights regarding family and medical 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. The family and medical leave can run concurrently with other leave mandated by state or federal law, such as the Family and Medical Leave Act of 1993. The bill also specifies that the tax credit is effective for tax years beginning on or after January 1, 2025.