AZ HB2295

Amends Arizona's corporate income tax credit for contributions to school tuition organizations by modifying the tax credit cap calculation in section 43-1183.

Changes the annual tax credit cap so it cannot exceed one percent of the amount appropriated for all purposes by the legislature from the state general fund in any fiscal year, replacing the previous uncapped 20 percent annual increase.

Maintains the existing $10 million minimum cap for fiscal year 2006-2007 and the 20 percent annual increase provision, but adds the one percent general fund appropriation ceiling as a limiting factor.

Retains all other existing requirements including the preapproval process, first-come, first-served basis for credits, and restrictions on designating contributions for specific students.