AZ HB2059

Freezes the aggregate cap on school tuition organization (STO) tax credits at the fiscal year 2016-2017 level, eliminating the previous 20% annual increase that had been scheduled through that year.

The combined total cap for STO credits under section 43-1183 and insurance premium tax credits under section 20-224.06 remains at the amount established for fiscal year 2016-2017, with no further automatic increases.

Maintains all existing procedures for taxpayer preapproval of contributions, first-come-first-served allocation of credits, and a five-year carryforward period for unused credits.

Applies retroactively to June 30, 2017, making the cap freeze effective as of that date.