Arizona Senate Bill 1657 - Arizona Equal Opportunity Education Act

• Expands Arizona Empowerment Scholarship Account (ESA) eligibility to include students from school districts with per-pupil funding exceeding university tuition rates or spending above constitutional limits through a new student empowerment fund.

• Increases the School Tuition Organization (STO) tax credit cap from $5,000,000 to $6,000,000 for fiscal year 2021-2022 and $10,000,000 for fiscal year 2022-2023, with future increases tied to inflation or 2% minimum.

• Increases individual income tax credits for STO contributions from $500/$1,000 to $1,243/$2,483 for single/married filers, adjusted annually for inflation.

• Establishes $25,000,000 annual transfer from education revenues to the student empowerment fund beginning fiscal year 2022-2023 and includes ESA students in classroom site fund calculations.

• Repeals the STO tax credit for displaced students and students with disabilities (section 43-1089.03) and consolidates related provisions while expanding ESA use to include computer hardware, transportation services, and annual education plan evaluations for eligible students.