AZ HB2339

Allows individual income tax credits for fees and cash contributions made to Arizona public schools for educational activities sponsored and sanctioned by the school.

Tax credit limits are $200 for single individuals or heads of household, and $300-$400 for married couples filing jointly depending on the tax year.

Expands the definition of eligible activities from "extracurricular activities or character education programs" to broader "educational activities" that promote student learning, college and career readiness, and achievement.

Unused tax credits may be carried forward for up to five consecutive taxable years if they exceed current year tax liability.

School principals determine how undesignated contributions are used; contributions for discontinued programs or those unused for two consecutive fiscal years become undesignated in the following fiscal year.