AZ HB2685

Establishes income tax credits for voluntary cash contributions to the state block grant for early childhood education program, effective for taxable years beginning after December 31, 2015.

Individual income tax credit allows up to $200 for single filers or heads of household and $400 for married couples filing jointly, with unused credits carryable forward for up to five years.

Corporate income tax credit caps aggregate annual credits at $10 million statewide and requires Department of Revenue preapproval on a first-come, first-served basis before contributions are made.

Modifies the state block grant for early childhood education program to serve children ages three, four, and five whose family income does not exceed 133 percent of federal poverty guidelines, funded through appropriations and private tax credit contributions.

Allows grants up to $150,000 per year to any single provider or school, with the Department of Education permitted to use up to 2 percent of annual funds for program administration.