AZ HB2328

Establishes the Public School Needs Fund managed by the Department of Education to receive and distribute monies from public school tax credit donations.

Requires public schools receiving tax credit fees and contributions above $200,000 annually to transfer 25 percent of amounts exceeding that threshold to the Public School Needs Fund.

Directs the Department of Education to develop application procedures and rank school district and charter school requests for fund distributions based on financial need, prior year donations received, and quality of requests.

Requires the Department of Education to issue annual reports by September 30 detailing fund receipts, distributions, applicant names, funding percentages, and administrative expenses.

Increases the tax credit limit for married couples filing joint returns from $400 to $1,000 beginning in taxable year 2017, while maintaining $500 limit for single individuals and heads of household.