HB 1371 Summary: Arkansas Child Academic Opportunity Scholarship and Grant Act

• Establishes a scholarship and grant program allowing eligible low-income students (household income ≤200% federal poverty guidelines) to transfer from public schools to nonpublic schools with funding from charitable student support organizations.

• Creates a 100% state income tax credit for taxpayers and businesses contributing to eligible student support organizations, capped at $10 million annually ($6 million for public school grants, $4 million for private school scholarships).

• Scholarship funds cover tuition, fees, uniforms, textbooks, tutoring, assessments, specialized services, transportation, and other approved educational expenses at nonpublic schools or education providers.

• Requires participating nonpublic schools to meet accreditation standards, maintain fiscal soundness, comply with health and safety requirements, employ teachers with baccalaureate degrees, and comply with civil rights laws.

• Establishes oversight through the Division of Elementary and Secondary Education, including annual audits, quarterly financial reporting, testing requirements for students, and parent satisfaction surveys.