An act TO EXEMPT FROM THE INDIVIDUAL INCOME TAX 10 EDUCATION SCHOLARSHIPS, AWARDS, AND GRANTS FROM 11 NONPROFIT VOLUNTEER SERVICE ORGANIZATIONS, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                      A Bill
2 95th General Assembly

3 Regular Session, 2025                                            SENATE BILL 423

4

5 By: Senators J. Scott, Crowell

6 By: Representative Ennett

7

8                                 For An Act To Be Entitled

9      AN ACT TO EXEMPT FROM THE INDIVIDUAL INCOME TAX

10     EDUCATION SCHOLARSHIPS, AWARDS, AND GRANTS FROM

11     NONPROFIT VOLUNTEER SERVICE ORGANIZATIONS; AND FOR

12     OTHER PURPOSES.

13

14

15                                       Subtitle

16                       TO EXEMPT FROM THE INDIVIDUAL INCOME TAX

17                       EDUCATION SCHOLARSHIPS, AWARDS, AND

18                       GRANTS FROM NONPROFIT VOLUNTEER SERVICE

19                       ORGANIZATIONS.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23     SECTION 1. Arkansas Code Title 26, Chapter 51, Subchapter 3, is

24 amended to add an additional section to read as follows:

25     26-51-317. Nonprofit volunteer service organization education award.

26     There is allowed an exemption from the individual income tax imposed by

27 this chapter for an education scholarship, award, or grant received by a

28 resident and awarded by a nonprofit volunteer service organization to:

29     (1) Pay for the taxpayer's attendance at an institution of

30 higher education;

31     (2) Pay for the taxpayer's educational or vocational training;

32 or

33     (3) Repay a taxpayer's student loan.

34

35     SECTION 2. EFFECTIVE DATE. Section 1 of this act is effective for tax

36 years beginning on or after January 1, 2025.

    *JLL271*                                                  03/11/2025 10:37:58 AM JLL271