AZ HB2037

Allows a tax credit against state income taxes for fees or cash contributions made to Arizona public schools for extracurricular activities, unified sports programs, or character education programs.

Caps the tax credit at $200 for single individuals or heads of household, and $300-$400 for married couples filing jointly (depending on tax year).

Requires public schools receiving such contributions to report to the department by February 28 annually on the number and dollar amount of payments received and how funds were spent, categorized by activity type.

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

Defines "unified sports programs" as inclusive programs combining students with intellectual disabilities and students without intellectual disabilities on sports teams for training and competition.