HB 2203 Summary

• Creates a new income tax credit for contributions made to state university foundations located in Arizona, capped at $250 for single filers/heads of household and $500 for joint filers per taxable year.

• Allows employees to reduce their withholding tax by the amount of the credit if they submit a written request to their employer, with the employer remitting the withheld amount directly to the designated state university foundation.

• Permits taxpayers to carry forward unused credits for up to five consecutive taxable years if the credit exceeds their tax liability.

• Specifies that the credit is in lieu of any federal income tax deduction for charitable contributions claimed for state tax purposes.

• Adds the new credit to the joint legislative income tax credit review committee's review schedule for years ending in 3 and 8, and updates definitions in tax administration code to include state university foundations.