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 residency status, completion of the Free Application for Federal Student Aid (FAFSA), enrollment in a degree or credential program, and maintaining a minimum grade point average.

The bill outlines additional requirements for claiming the tax credit, such as being classified as a degree-seeking student, enrolling within two years of high school graduation, and completing a minimum number of credit hours each semester. The credit can be claimed for up to four consecutive academic semesters, and if the credit exceeds the taxpayer's 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.