AZ HB2198

Amends Arizona's tax credit for contributions to public schools to include curricula and materials for science, technology, engineering, arts and mathematics (STEAM) programs in addition to extracurricular activities and character education programs.

Maintains existing tax credit limits: $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.

Requires public schools to report to the department by February 28 each year on total fees/contributions received and spent, with spending categorized by specific activity or program, including STEAM program expenditures.

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

Credits are in lieu of federal tax deductions under Internal Revenue Code Section 170 for state tax purposes.