SB630 Summary

• Creates the Philanthropic Investment in Arkansas Kids Program, a tax credit scholarship program for low-income students to attend private schools beginning with tax years on and after January 1, 2022.

• Allows taxpayers to claim a 100% state income tax credit (up to $2,000,000 annual cap) for contributions to scholarship-granting organizations, with unused credits carried forward for up to three years.

• Establishes eligibility requirements for students including family income at or below 200% of federal poverty guidelines and prior public school enrollment or first-time K-12 enrollment in the state.

• Requires scholarship-granting organizations to be 501(c)(3) nonprofits that award educational scholarships averaging no more than 80% of foundation funding for K-8 students and 90% for grades 9-12, with all scholarships distributed within three years.

• Mandates participating private schools conduct annual norm-referenced testing for scholarship recipients in grades 3-10, report academic progress to parents and an independent research organization, and comply with health, safety, and occupancy requirements.