This bill proposes an exemption from the individual income tax for education scholarships, awards, and grants received from nonprofit volunteer service organizations. It introduces a new section to the Arkansas Code, specifically 26-51-317, which outlines that residents can receive tax exemptions for funds awarded by these organizations to cover expenses related to higher education attendance, educational or vocational training, or repayment of student loans.

The bill specifies that this exemption will be effective for tax years beginning on or after January 1, 2025. This legislative change aims to support individuals pursuing education and training by alleviating some of the financial burdens associated with taxes on these forms of financial assistance.