SB1257 Summary

• Establishes new tax credits for individual and corporate taxpayers who make voluntary cash contributions to qualified charter schools in Arizona for capital facilities expenses (acquisition, lease, improvement, or debt service).

• Individual taxpayers may claim up to $500 (single filer/head of household) or $1,000 (joint filers) in annual tax credits; corporate taxpayers may claim up to $1,000 annually.

• Qualified charter schools must have an A or B letter grade or be designated alternative schools with excellent/above average performance profiles and maintain financial and academic compliance with their charter contracts.

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

• Qualified charter schools must report annually to the department on contribution amounts received and how funds were spent on qualified expenses; schools that voluntarily surrender or lose their charter must repay all contributions received over the prior ten years.