AR HB1222

Establishes a four-year pilot program (2018-2019 school year) allowing up to 5 certified nonprofit organizations to administer education savings accounts funded by taxpayer contributions receiving a 65% state income tax credit.

Education savings accounts provide eligible Arkansas K-12 students with funds equal to the state foundation funding amount, usable for nonpublic school tuition, tutoring, textbooks, curriculum, assessments, higher education costs, specialized services, and other education-related expenses.

Eligible students must be Arkansas residents eligible to enroll in public school; priority enrollment goes to students previously receiving accounts, siblings, low-income students, and children of deployed military members, with a 2-to-1 ratio of public school to nonpublic school attendees required.

Taxpayers must notify the Department of Finance and Administration of intended contributions between March 1 and April 15 each year; certified contributions are capped at $3 million annually in fiscal years 2019-2021 on a first-come, first-served basis.

Parents must sign agreements to provide organized educational programs with measurable goals, undergo annual testing through state or nationally recognized assessments, and cannot simultaneously enroll students in public schools or accept competing state education funding.