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HB 1021

TO CREATE THE EARLY CHILDHOOD EDUCATION WORKFORCE QUALITY INCENTIVE ACT; AND TO CREATE AN INCOME TAX CREDIT FOR CERTAIN EARLY CHILDHOOD EDUCATION WORKERS.

2025 Regular Session Introduced by Andrew Collins and 3 co-sponsors

House Bill 1021 proposed refundable tax credits for early childhood educators, enhancing their financial support and encouraging quality education in Arkansas.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1021

Summary of House Bill 1021: Early Childhood Education Workforce Quality Incentive Act

Purpose and Intent

House Bill 1021, titled the Early Childhood Education Workforce Quality Incentive Act, aimed to enhance the quality of early childhood education in Arkansas by providing a refundable income tax credit to certain early childhood education workers. The bill sought to support educators in this sector, recognizing their vital role in child development and education.

Key Provisions

The bill proposed the following key provisions:

  • Income Tax Credit Eligibility: To qualify for the income tax credit, early childhood education workers must:

    • Be employed in a program that meets the Better Beginnings quality rating system.
    • Hold a position as a program director, teacher, or instructional staff.
    • Earn less than the minimum salary for K-12 public school teachers as defined in § 6-17-2403.
    • File an attestation form with their tax return, verifying their eligibility through the Arkansas Professional Development Registry.

  • Credit Amounts: The refundable income tax credit would vary based on the worker's educational qualifications:

    • $1,800 for those with a Child Development Associate certification.
    • $1,800 for holders of an Arkansas Children's Program Administrator Credential.
    • $2,400 for those with an associate degree in early childhood education or a related field.
    • $3,000 for individuals with a bachelor's degree or higher in early childhood education or a related field.

  • Effective Date: The provisions of the bill were set to take effect for tax years beginning on or after January 1, 2025.

Fiscal Impact

The estimated fiscal impact of the bill was significant, with a projected $10,431,000 reduction in general revenue for FY2026. This estimate was based on the number of qualified workers and their respective educational credentials.

Impact on Stakeholders

The bill would have primarily affected:
- Early Childhood Education Workers: Those meeting the eligibility criteria would benefit from the tax credits, potentially improving their financial situation.
- Early Childhood Education Programs: Programs adhering to the Better Beginnings quality rating system would be incentivized to retain qualified staff.
- State Revenue: The proposed tax credits would result in a reduction of state revenue, necessitating adjustments in budget planning.

Legislative Timeline

  • Introduced: November 20, 2024
  • Amendments: The bill underwent amendments on January 16, 2025, and was reported correctly engrossed.
  • Final Status: The bill ultimately died in the House Committee at Sine Die adjournment on May 5, 2025, meaning it did not advance to a vote.

Conclusion

While House Bill 1021 aimed to support early childhood education workers through financial incentives, it did not progress through the legislative process. The proposed tax credits represented a significant investment in the early education workforce, highlighting the state's recognition of the importance of quality early childhood education.

Compiled from official sources — confirm details with the bill’s official record.

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