AR SB680

Creates the Philanthropic Investment in Arkansas Kids Program, allowing taxpayers to claim a state income tax credit equal to 100% of eligible contributions made to scholarship-granting organizations, effective for tax years beginning January 1, 2022.

Establishes a $2,000,000 annual cap on total state income tax credits awarded, distributed on a first-come, first-served basis.

Defines eligible scholarship recipients as students with family income at or below 200% of federal poverty guidelines who are eligible to attend public school and meet specified enrollment criteria.

Requires scholarship-granting organizations to be 501(c)(3) tax-exempt entities that distribute scholarships to multiple schools, maintain background checks on employees, ensure participating schools comply with health and safety standards, and administer nationally recognized norm-referenced tests to scholarship recipients in grades 3-10.

Establishes that at least 90% of revenue from eligible contributions must be spent within three years on educational scholarships and school oversight activities, with all contributions distributed within three tax years of receipt.