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REFERENCE TITLE: tax credit; title I schools |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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HB 2676 |
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Introduced by Representatives Rivero: Campbell, Fernandez, Velasquez
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AN ACT
Amending title 15, chapter 2, article 2, Arizona Revised Statutes, by adding section 15-245.01; Amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1075; relating to individual income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 15-245.01, to read:
15-245.01. Arizona title I school matching grant fund
A. The Arizona title I school matching grant fund is established consisting of legislative appropriations, gifts, grants and donations. The department of education shall administer the fund. Monies in the fund are continuously appropriated for the purposes of this section and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
B. A qualifying title I school that receives donations from taxpayers for the purposes of the income tax credit provided by section 43-1075 is eligible to apply to the department of education, in a manner and form prescribed by the department, to receive a grant of matching monies from the fund. The department shall award the grants to qualifying title I schools each fiscal year in an amount of four dollars for each dollar the qualifying title I school received in donations from taxpayers during the preceding fiscal year. The department may not match donations that exceed two hundred fifty thousand dollars in any fiscal year. The department shall distribute grants under the dollar limit as follows:
1. if, on July 1 of the fiscal year, applications for matching money grants exceed the dollar limit, the grants for that fiscal year shall be distributed proportionately and only among qualifying title I schools that have applied as of that date.
2. if applications for matching money grants do not exceed the dollar limit on July 1 of the fiscal year, the grants for that fiscal year shall be awarded on a first‑come, first‑served basis.
C. The qualifying title I school may use the matching grant monies for the same purposes that are allowed for the use of federal title I financial assistance.
D. For the purposes of this section, "qualifying title I school" means a school that qualifies to receive financial assistance from the United States government pursuant to title I, part A of the elementary and secondary education act of 1965 (P.L. 89-10) and that further qualifies because at least seventy percent of the pupils enrolled in that school are from low‑income families.
Sec. 2. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43‑1079.01, 43‑1087, 43‑1088, 43-1089.04, 43‑1167.01 and 43‑1175.
2. For years ending in 1 and 6, sections 43‑1074.02, 43-1075, 43‑1083, 43‑1083.02, 43‑1085.01, 43‑1164.02, 43-1164.03 and 43‑1183.
3. For years ending in 2 and 7, sections 43‑1073, 43‑1079, 43‑1080, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43-1089.03, 43‑1090, 43‑1164, 43‑1167, 43‑1169, 43‑1176 and 43‑1181.
4. For years ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1076, 43‑1076.01, 43‑1081.01, 43‑1083.01, 43‑1083.04, 43‑1084, 43‑1162, 43‑1162.01, 43‑1164.01, 43‑1164.05, 43‑1170.01 and 43-1184 and, beginning in 2019, sections 43‑1083.03 and 43‑1164.04.
Sec. 3. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1075, to read:
43-1075. Credit for donations to title I schools; definition
A. For taxable years beginning from and after December 31, 2015, a credit is allowed for voluntary donations by the taxpayer to one or more title I schools located in this state.
B. The amount of the credit is the dollar amount of the donations contributed by the taxpayer during the taxable year, but not more than two hundred dollars in donations in any taxable year. A married couple filing a joint return may count the donations made by each spouse, up to two hundred dollars each.
C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the tax forward for not more than five consecutive taxable years' income tax liability.
D. For the purposes of this section, "title I school" means a school that qualifies to receive financial assistance from the United States government pursuant to title I, part A of the elementary and secondary education act of 1965 (P.L. 89-10) because of high numbers or high percentages of children enrolled in that school from low-income families.
Sec. 4. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the Legislature enacts section 43-1075, Arizona Revised Statutes, as added by this act, to encourage financial support from taxpayers for schools that enroll a high number or high percentage of children from low-income families.
Sec. 5. Retroactivity
Section 43-1075, Arizona Revised Statutes, as added by this act, applies retroactively to taxable years beginning from and after December 31, 2015.