1. (a) An itemized deduction from the taxpayer's AGI shall be allowed for a portion of the tuition paid by the taxpayer for the taxpayer, the taxpayer's spouse, or the taxpayer’s dependent or dependents to attend post-secondary educational institutions that fall into the following classifications:

   1. (1) Four-year colleges and universities;
   2. (2) Two-year community colleges; and
   3. (3) Technical institutes and colleges.

2. (b)

   1. (1) The deduction shall be limited to the lesser of:

      1. (A) Fifty percent (50%) of the amount actually paid for tuition; or
      2. (B) Fifty percent (50%) of a weighted average tuition for post-secondary educational institutions within the same classification.
   2. (2) On or before November 30 of each year (beginning with November 30, 1998), the Office of Income Tax Administration of the Department of Finance and Administration shall obtain and make available the weighted average tuition for each of the three (3) classifications.
3. (c) This deduction includes tuition paid to qualifying post-secondary educational institutions located both inside and outside of Arkansas.
4. (d) The deduction will be allowable for tax years beginning on or after January 1, 1998.

Codification Notes: “AGI” means adjusted gross income.