AZ HB2672

Establishes the Public School Innovation Project Program, administered by the state board of education's innovation project selection committee, to award competitive grants to school districts and charter schools for innovative education projects that improve student achievement and address technology and instructional delivery.

Creates the Public School Innovation Project Fund to receive and distribute grant monies, with a maximum of 10% allowable for administrative expenses, and requires quarterly reporting to the selection committee and annual reporting to the Department of Revenue and Legislature.

Allows individual taxpayers a state income tax credit of up to $500 per year (single) or $1,000 per year (joint filers) for voluntary cash contributions to the public school innovation project fund, with unused credits carried forward up to five years.

Provides an insurance premium tax credit allowing insurers to claim a credit equal to voluntary cash contributions made to the public school innovation project fund, with carryforward provisions for unused credits up to five years.

Establishes a corporate tax credit allowing businesses to claim credits for contributions to the fund, capped at $5 million in combined individual and corporate tax credits per fiscal year, with a preapproval process managed by the Department of Revenue and state board of education.