AZ HB2034

Creates a new tax credit for qualified schoolteachers (kindergarten through grade 12) for expenses on educational supplies, materials, uniforms, and clothing used in the classroom, with a maximum credit of $1,000 per year.

Allows married couples filing jointly who are both qualified teachers to each claim up to $1,000 in separate expenses, for a combined maximum of $2,000.

Permits unused tax credits to be carried forward for up to five consecutive taxable years if the credit exceeds taxes owed in the current year.

Requires teachers to add back any deducted educator expenses under federal tax code section 62(a)(2)(D) if claiming this state tax credit, preventing double-deduction of the same expenses.

Applies retroactively to taxable years beginning December 31, 2018, and adds the credit to the joint legislative income tax credit review schedule for years ending in 4 and 9.