HB 2425 - School Tax Credit for Public School Fees and Contributions

• Amends Arizona law to allow tax credits for fees and contributions to public schools, with maximum credits of $200 for single filers and $400 for married couples filing jointly.

• Expands eligible uses of contributed funds from standardized testing, test preparation, CPR training, extracurricular activities, and character education to also include capital items, community school meal programs, student health care supplies, and playground equipment (temporary authorization June 30, 2019 through June 30, 2022).

• Allows unused tax credits to be carried forward for up to five consecutive taxable years.

• Requires public schools to report to the Department of Revenue by February 28 each year on total contributions received and how funds were spent, categorized by purpose.

• Permits site councils (or principals for charter schools without councils) to determine use of undesignated contributions, with ability to transfer unspent designated contributions to other schools in the same district if the purpose is discontinued or unused for two consecutive years.