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, excluding amounts covered by scholarships or grants. To qualify for the credit, students must meet specific criteria, including residency status, completion of the Free Application for Federal Student Aid (FAFSA), and maintaining a minimum grade point average.

Additionally, the bill stipulates that the income tax credit can be claimed for a maximum of four consecutive academic semesters and includes provisions for refunding any excess credit beyond the taxpayer's liability. The act is set to take effect for tax years beginning on or after January 1, 2025.