AZ SB1261

Establishes a three-year Arizona community schools pilot program in the governor's office to select and assist three public elementary and middle schools in developing community school plans.

Awards three-year grants to eligible schools of up to $60,000 annually for a full-time community school coordinator's salary and benefits, plus $25,000 annually to develop and implement a community school plan.

Requires participating schools to establish a school-community partnership team and partner with a community-based organization or social service provider, and to develop a sustainability plan for continuing the program after the pilot ends.

Creates a tax credit allowing taxpayers to claim up to $50,000 per year for voluntary contributions to fund the pilot program for taxable years 2017-2019, with unused credits carried forward up to five years.

Repeals the entire section on December 31, 2020, ending the pilot program after three years of operation.