AR SB304

Creates a $3,000 annual income tax credit for full-time law enforcement officers employed by municipal police departments, county sheriff's offices, state law enforcement entities, airport authorities, or federal law enforcement agencies.

Defines eligible officers as those who work at least 25 hours per week for at least 11 months per calendar year and have statutory authority to enforce criminal, traffic, or highway laws.

Requires verification forms approved by the Department of Finance and Administration signed by appropriate supervisory personnel (second most senior officer and payroll clerk for chiefs; immediate supervisor and chief for other officers).

Limits the credit amount to not exceed the taxpayer's actual income tax liability in any given tax year.

Effective for tax years beginning on or after January 1, 2021.