AZ HB2150

Establishes an income tax credit for taxpayers who make voluntary donations to Title I schools in Arizona, allowing up to $200 in donations per taxpayer per year ($200 each for married couples filing jointly).

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

Creates the Arizona Title I School Matching Grant Fund administered by the Department of Education, which provides $4 in matching grants for every $1 donated by taxpayers, with a $250,000 annual donation cap per school.

Requires matching grants to be distributed proportionately among qualifying schools if applications exceed the dollar limit on July 1, or on a first-come, first-served basis if applications do not exceed the limit.

Applies retroactively to taxable years beginning December 31, 2018, and subjects the tax credit to legislative review in years ending in 4 and 9.