The Arkansas Promise Act aims to create an income tax credit for tuition paid for eligible students attending public institutions of higher education. The bill introduces a new section to the Arkansas Code, specifically 26-51-518, which defines "tuition" as the charges for attendance at public two-year or four-year institutions. The tax credit is available to taxpayers who pay tuition for themselves or their dependents, excluding amounts covered by scholarships or grants. To qualify for the credit, students must meet several criteria, including being a resident with in-state tuition classification, completing the FAFSA, being degree- or credential-seeking, enrolling within two years of high school graduation, accumulating fewer than 65 credit hours prior to enrollment, completing at least six credit hours each semester, and maintaining a minimum GPA of 2.5.

The bill stipulates that the income tax credit can be claimed for a maximum of four consecutive academic semesters and allows for refunds if the credit exceeds the taxpayer's liability. Additionally, the act specifies that it will take effect for tax years beginning on or after January 1, 2025. This initiative is designed to support higher education accessibility and affordability for Arkansas residents.