HB1021
To Create The Early Childhood Education Workforce Quality Incentive Act; And To Create An Income Tax Credit For Certain Early Childhood Education Workers.
AI-Generated Summary
This bill, known as the "Early Childhood Education Workforce Quality Incentive Act," proposes to create an income tax credit for individuals working in early childhood education. To qualify, individuals must be directors, teachers, or instructional staff in an early childhood education program that meets the "Better Beginnings" quality rating system. Additionally, their earnings must be less than the state's minimum salary for K-12 public school teachers. The amount of the tax credit varies based on the individual's qualifications, ranging from $1,800 for those with a Child Development Associate certification or an Arkansas Children's Program Administrator Credential, to $2,400 for those with an associate degree in early childhood education or a related field, and up to $3,000 for those with a bachelor's degree or higher. If the credit exceeds the taxpayer's tax liability, the excess will be refunded. To claim the credit, individuals must submit an attestation form from the Arkansas Professional Development Registry.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are early childhood education workers in Arkansas who meet the specified criteria. This includes directors, teachers, and instructional staff employed in programs certified by the "Better Beginnings" quality rating system and who earn less than the minimum salary for K-12 public school teachers. Individuals holding a Child Development Associate certification, an Arkansas Children's Program Administrator Credential, an associate degree, or a bachelor's degree or higher in early childhood education or a related field would receive direct financial benefit through an income tax credit, with higher educational attainment leading to a larger credit amount. The early childhood education programs themselves may also indirectly benefit through increased staff retention and potentially improved recruitment due to the incentive.
Who Might Suffer?
The primary entities that could be negatively impacted by this bill are the state's taxpayers, as the income tax credits represent a reduction in state revenue. While the bill is designed to provide incentives for early childhood educators, the cost of these credits will ultimately be borne by the state's general fund, which is supported by the taxes paid by all Arkansans. The Arkansas Department of Education, through its Professional Development Registry, will likely incur administrative costs associated with developing and processing the required attestation forms. If the program leads to a significant increase in claims, the state may need to allocate additional funds for tax refunds.