HB2001 Summary

• Establishes a new income tax credit (section 43-1181) allowing taxpayers to claim 30% of the fair market value of real property and improvements donated to school districts or charter schools.

• Requires donated property to be located in Arizona, conveyed in fee simple with deed restrictions limiting use to school purposes, and appraised by an independent party paid by the donee.

• For charter school donations, donors must record a lien on the property equal to the allowable credit amount, adjusted annually by the GDP price deflator but capped at 112.5% of the original credit, which extinguishes after 10 years or upon other specified conditions.

• Allows unused credits to carry forward for up to five consecutive tax years and prohibits claiming both this credit and a federal charitable deduction under Internal Revenue Code section 170 for the same donation.

• Applies retroactively to taxable years beginning after December 31, 2019, and adds the new credit to the joint legislative income tax credit review schedule for years ending in 2 and 7.