AZ HB2565

Expands the income tax credit for public school fees and contributions to include school meal programs and student health care consumables (tissues, hand wipes, bandages, and similar supplies).

Maintains existing credit limits of $200 for single filers/heads of household and $400 for married couples filing jointly.

Allows taxpayers to carry forward unused credits for up to five consecutive taxable years if the credit exceeds taxes owed in the current year.

Requires public schools to report annually to the department by February 28 on total fees and contributions received and spent, categorized by type of program or activity.

Applies to fees paid or cash contributions made to public schools located in Arizona for eligible activities, programs, or student supplies during the taxable year.