AZ HB2008

Allows taxpayers a credit against state income taxes for fees and cash contributions made to public schools for standardized testing, career and technical education assessments, test preparation materials, extracurricular activities, or character education programs.

Credit limits are $200 for single individuals or heads of household, $300 for married couples filing jointly in tax year 2005, and $400 for married couples filing jointly in tax year 2006 and subsequent years.

Expands the definition of "extracurricular activities" to include any optional, noncredit educational or recreational activity that supplements the school education program, whether offered before, during or after school hours.

Requires public schools receiving contributions to report annually to the department by February 28 the number of payments received, total dollar amounts, and how contributions were spent by category.

Unused tax credits may be carried forward for up to five consecutive taxable years.