AZ SB1020

Freezes the aggregate tax credit cap for school tuition organization (STO) contributions beginning in fiscal year 2018-2019, preventing further annual 20% increases that had been in effect since 2007-2008.

Maintains the combined aggregate cap for STO tax credits under sections 43-1183 and 20-224.06 at the fiscal year 2017-2018 level for all subsequent years.

Requires taxpayers to notify STOs of intended contribution amounts and obtain department of revenue preapproval before making contributions to claim the tax credit.

Establishes a 20-day timeframe for department preapproval decisions and requires contributions to be made within 20 days of preapproval notification to qualify for the credit.

Specifies that preapproved contributions not received by the STO within 20 days must be reported to the department of revenue so the amount is no longer counted toward the aggregate cap.