This bill proposes an exemption from the individual income tax for education scholarships, awards, and grants received by residents from nonprofit volunteer service organizations. The new section added to the Arkansas Code, designated as 26-51-317, specifies that these exemptions can be applied to funds used for attending institutions of higher education, for educational or vocational training, or for repaying student loans.

Additionally, the bill establishes that this exemption will take effect for tax years beginning on or after January 1, 2025. This legislative change aims to support residents in their educational pursuits by alleviating the tax burden associated with financial assistance from nonprofit organizations.