AR HB1531

Creates an income tax credit in Arkansas Code Title 26, Chapter 51, Subchapter 5 for educational loan payments made by qualified individuals or their employers.

Defines "qualified individual" as an Arkansas resident who earned an associate's, bachelor's, or graduate degree and either works at least 16 hours per week in Arkansas, is deployed in military service, or works 16+ hours per week on a vessel at sea.

Allows qualified individuals a credit equal to the lesser of either the benchmark loan payment (calculated using federal Stafford loan rates over 10 years) or actual monthly loan payment, multiplied by the number of payment months in the tax year.

Provides employers a credit equal to actual monthly educational loan payments made on behalf of the qualified individual, reduced to 50% if the employee works fewer than 32 hours per week.

Makes the credit refundable for individuals who earned an associate's degree or a bachelor's degree in science, technology, engineering, or mathematics, and allows unused credits to carry forward for 10 consecutive tax years; effective for tax years beginning January 1, 2017.