HB 2527 Summary

• Establishes a tax credit for individual taxpayers who make voluntary donations to Title I schools in Arizona, with a maximum credit of $200 per taxpayer per year (or $200 each for married couples filing jointly).

• Allows unused tax credits to be carried forward for up to five consecutive taxable years if the credit exceeds the taxpayer's tax liability.

• Creates the Arizona Title I School Matching Grant Fund administered by the Department of Education, which provides matching grants of $4 for every $1 donated to qualifying Title I schools, up to a $250,000 annual cap per school.

• Distributes matching grant funds proportionately on July 1 if applications exceed the annual limit, or on a first-come, first-served basis if applications do not exceed the limit.

• Defines "Title I school" as schools that qualify for federal Title I assistance and serve high percentages of low-income students, with the tax credit applying retroactively to taxable years beginning after December 31, 2016.