The proposed legislation, titled the "Early Childhood Education Workforce Quality Incentive Act," aims to establish an income tax credit for certain early childhood education workers in Arkansas. This act introduces a new section to the Arkansas Code, specifically 26-51-518, which outlines the eligibility criteria for the tax credit. To qualify, early childhood education program directors, teachers, and instructional staff must be employed in programs that meet the Better Beginnings quality rating system and earn less than the state's minimum salary for K-12 public school teachers. The tax credit amounts vary based on the worker's qualifications, ranging from $1,800 for those with a Child Development Associate certification or an Arkansas Children's Program Administrator Credential, to $3,000 for those holding a bachelor's degree or higher in early childhood education or a related field.

Additionally, the bill stipulates that if the tax credit exceeds the taxpayer's income tax liability, the excess amount will be refunded. To claim the credit, taxpayers must submit an attestation form with their income tax return, verifying their eligibility. The act is set to take effect for tax years beginning on or after January 1, 2025.