TO EXEMPT FROM THE INDIVIDUAL INCOME TAX EDUCATION SCHOLARSHIPS, AWARDS, AND GRANTS FROM NONPROFIT VOLUNTEER SERVICE ORGANIZATIONS.

SB 423 aimed to exempt certain education scholarships, awards, and grants from the individual income tax in Arkansas. This bill would have directly affected Arkansas residents who receive financial assistance from nonprofit volunteer service organizations for educational purposes. Specifically, the exemption would apply to funds used to pay for higher education attendance, educational or vocational training, or student loan repayment. If passed, this change would have been effective for tax years beginning on or after January 1, 2025.