The Arkansas Promise Act aims to amend the state's individual income tax laws by introducing a new income tax credit for tuition paid for eligible students attending public institutions of higher education. This new section, designated as 26-51-518, defines "tuition" as the charges levied for attendance at public two-year or four-year colleges. The tax credit is available to taxpayers who pay tuition for themselves or their dependents, provided that the tuition is not covered by scholarships or grants. To qualify for the credit, students must meet specific criteria, including being a resident with in-state tuition classification, completing the FAFSA, maintaining a minimum GPA, and enrolling in college within two years of high school graduation.

The bill outlines several requirements for claiming the tax credit, such as having an adjusted gross income of up to $90,000 and completing at least six credit hours each semester. The credit can be claimed for a maximum of four consecutive academic semesters, and any excess credit beyond the taxpayer's liability will be refunded. The provisions of this act will take effect for tax years beginning on or after January 1, 2025.