AZ HB2080

Increases the school tuition organization (STO) income tax credit cap annually beginning in fiscal year 2017-2018 by the greater of the metropolitan Phoenix consumer price index or 2 percent, replacing the previous fixed 20 percent annual increase through fiscal year 2016-2017.

Raises the minimum percentage of STO annual revenues that must be allocated to educational scholarships from 90 percent to 95 percent for all contribution types.

Changes the income eligibility threshold for low-income scholarship recipients from 185 percent of the national school lunch program threshold to 133 percent of the federal poverty level.

Adds "federal poverty level" as a defined term in the statutes and requires STOs to report scholarship data using federal poverty level guidelines instead of school lunch program thresholds.

Applies these changes uniformly across all STO credit programs (sections 43-1183, 43-1184, 20-224.06, and 20-224.07) and both income tax and insurance premium tax credit provisions.