AZ SB1377

Amends Arizona tax law to allow individual income tax credits for fees and cash contributions to public schools for extracurricular activities, character education programs, or direct classroom expenses.

Increases allowable tax credit amounts: $200 for single individuals/heads of household, $300 for married couples filing jointly in 2005, and $400 for married couples filing jointly in 2006 and subsequent years.

Defines "direct classroom expense" as items described in section 15-962, subsection D, expanding the scope of expenses eligible for the tax credit.

Allows public schools receiving extracurricular activity fees to spend those funds on associated administrative expenses including utilities, janitorial services, and other operational costs necessary to operate the activity.

Requires public schools to report annually to the Department of Revenue on total fees and contributions received, amounts spent, and categorization of spending by activity type or program.