AR HB1840

Creates a 100% income tax credit against state income tax for donations made to the Graduate Medical Education Fund, effective for tax years beginning January 1, 2022

Caps total income tax credits at $5,000,000 per fiscal year, with credits issued on a first-come, first-served basis by the Division of Higher Education

Automatically increases the annual cap by 25% for the following fiscal year if credit claims reach or exceed 90% of the current cap

Allows taxpayers to carry forward unused credits for five consecutive tax years, but prohibits transferring credits to other entities unless all taxpayer assets are conveyed in the same transaction

Requires the Division of Higher Education to adopt implementing rules and file them with the Secretary of State by January 1, 2022, or as soon as practicable thereafter