The proposed bill amends the individual income tax laws in Arkansas by introducing a new income tax credit specifically for dependent children. This credit, referred to as the "dependent child tax credit," allows individual taxpayers with a net income of up to $100,000, or joint filers with a net income of up to $200,000, to claim a credit of $300 for each qualifying child under the age of eighteen at the end of the taxable year. The bill also stipulates that if both spouses filing separately claim the credit, it will be divided equally between them.

Additionally, the bill mandates that the Secretary of the Department of Finance and Administration will adjust the credit annually based on the cost-of-living index, ensuring that the credit remains relevant to inflation. If the credit exceeds the taxpayer's income tax liability, the excess amount will be refunded. The provisions of this act will take effect for tax years beginning on or after January 1, 2025.