AZ HB2631

Expands the income tax credit for public school fees and contributions to include school meal programs and consumable student health care supplies (tissues, hand wipes, bandages).

Allows taxpayers to claim a credit for fees paid for standardized testing, career and technical education assessments, and preparation courses, plus cash contributions for extracurricular activities, character education programs, school meals, and health care supplies.

Maintains existing credit limits: $200 for single individuals or heads of household, $300 for married couples filing jointly in 2005, and $400 for married couples filing jointly in 2006 and thereafter.

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

Requires public schools to report annually to the Department of Revenue by February 28 on total fees and contributions received and spent, categorized by type.