AZ SB1259

Allows qualifying taxpayers to deduct up to $2,500 annually for tuition paid to Arizona universities under the Board of Regents or community colleges in Arizona, effective for tax years beginning after December 31, 2016.

Defines qualifying taxpayers as those whose Arizona adjusted gross income does not exceed $80,000 for single individuals or heads of household, or $160,000 for married couples filing jointly.

Permits the college tuition deduction in addition to other itemized deductions allowed under existing Arizona tax law.

Clarifies that taxpayers cannot claim both an itemized deduction and a tax credit for the same charitable contributions.