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 allows residents to exclude these financial awards from their taxable income. The exemptions apply to funds used for attending institutions of higher education, for educational or vocational training, or for repaying student loans.

The bill specifies that this exemption will take effect 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 assistance.