Arkansas Code § 26-51-447 - Deductions -- Tuition to Post-Secondary Educational Institutions

(a) In computing net income for the purposes of the Income Tax Act of 1929, ยง 26-51-101 et seq., there shall be allowed as a deduction in addition to all other deductions allowed by law for a portion of the amount paid by the taxpayer as tuition for the taxpayer, the taxpayer's spouse or dependent to attend a post-secondary educational institution. The deduction shall be equal to fifty percent (50%) of the lesser of either the amount of tuition paid or the weighted average tuition for post-secondary educational institutions of the same classification.

(b) On or before November 30, 1998, of each year thereafter, the Director of the Department of Finance and Administration shall determine the weighted average tuition of post-secondary institutions of each of the following classifications:

(1) Four-year institutions of higher education;

(2) Two-year institutions of higher education; and

(3) Technical institutes.

(c) (1) As used in this section, "weighted average tuition" means the tuition cost resulting from the following calculation:

(A) Add the products of the annual tuition at each state-supported post-secondary institution of the same classification multiplied by that institution's total number of fiscal-year-equated students; and

(B) Divide the gross total of the product from subdivision (c)(1)(A) of this section by the total number of fiscal-year-equated students attending each state-supported post-secondary institution of the same classification.

(2) For four-year institutions of higher education only undergraduate tuition and undergraduate students shall be used in calculating weighted average tuition.

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Last modified: November 15, 2016