Bill
Number: H.B. 2278
Livingston Floor Amendment
Reference
to: APPROPRIATIONS
Committee amendment
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Prohibits a school
tuition organization (STO) from issuing an educational scholarship or tuition
grant that exceeds the amount of the school's tuition.
2. Replaces the TY 2023
increase of the individual Credit for Contributions to STOs with an increase,
beginning January 1, 2023, of the cap on the individual Credit for
Contributions to STOs from:
a. $1,243 to $1,493 in any
taxable year for a single individual or head of household; and
b. $2,483 to $2,983 in any
taxable year for a married couple filing jointly.
3. Delays, until January
1, 2023, the repeal of the individual Credit for Contributions to Certified
STOs.
4. Delays, until FY 2023,
the increase of the aggregate cap for the corporate Credit for Contributions to
STOs for Displaced or Disabled Students
5. Suspends, until TY
2024, the requirement for the Arizona Department of Revenue to annually adjust
the amount of the individual Credit for Contributions to STOs.
6. Specifies that any
contributions made for the individual Credit for Contributions to Certified
STOs not allocated before January 1, 2023, are subject to statutes currently
governing the contributions.
7. Requires each STO, for
any contributions not allocated before January 1, 2023, to include the
statutorily required contribution information in their annual report.
8. Adds a savings clause.
Strike page 5
Page 6, strike lines 1 through 19, insert:
"Sec. 3. Section
43-1089, Arizona Revised Statutes, is amended to read:
START_STATUTE43-1089. Credit
for contributions to school tuition organization
A. A
credit is allowed against the taxes imposed by this title for the amount of
voluntary cash contributions by the taxpayer or on the taxpayer's behalf
pursuant to section 43-401, subsection G during the taxable year to a
school tuition organization that is certified pursuant to chapter 16 of this
title at the time of donation. Except as provided by subsection C of this
section, the amount of the credit shall not exceed:
1. Five hundred dollars $500 in any taxable
year through December 31, 2022 for a single
individual or a head of household.
2. One thousand dollars $1,000 in any taxable
year through december 31, 2022 for a married couple
filing a joint return.
3. $1,493
in any taxable year beginning from and after December 31, 2022 for a single
individual or a head of household.
4. $2,983
in any taxable year beginning from and after december 31, 2022 for a married
couple filing a joint return.
B. A
husband and wife who file separate returns for a taxable year in which they
could have filed a joint return may each claim only one-half of the tax
credit that would have been allowed for a joint return.
C. For
each taxable year beginning on or after January 1, the
department shall adjust the dollar amounts prescribed by subsection A,
paragraphs 1 and 2 of this section through December 31, 2022
and subsection A, paragraphs 3 and 4 of this section beginning
from and after december 31, 2023 according to the
average annual change in the metropolitan Phoenix consumer price index
published by the United States department of labor, bureau
of labor statistics, except that the dollar amounts shall not be revised
downward below the amounts allowed in the prior taxable year. The
revised dollar amounts
shall be raised to the nearest whole dollar.
D. 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 taxes under
this title forward for not more than five consecutive taxable years' income tax
liability.
E. The
credit allowed by this section is in lieu of any deduction pursuant to section
170 of the internal revenue code and taken for state tax purposes.
F. The
tax credit is not allowed if the taxpayer designates the taxpayer's
contribution to the school tuition organization for the direct benefit of any
dependent of the taxpayer or if the taxpayer designates a student beneficiary
as a condition of the taxpayer's contribution to the school tuition organization. The
tax credit is not allowed if the taxpayer, with the intent to benefit the
taxpayer's dependent, agrees with one or more other taxpayers to designate each
taxpayer's contribution to the school tuition organization for the direct benefit
of the other taxpayer's dependent.
G. For
the purposes of this section, a contribution, for which a credit is claimed,
that is made on or before the fifteenth day of the fourth month following the
close of the taxable year may be applied to either the current or preceding
taxable year and is considered to have been made on the last day of that
taxable year." END_STATUTE
Page 6, line
20, strike "Repeal" insert "Delayed repeal"
Line
21, after "repealed" insert "from and after December 31,
2022"
Strike lines
22 through 31
Strike page
7
Page 8,
strike lines 1 through 27, insert:
"Sec. 5. Section
43-1184, Arizona Revised Statutes, is amended to read:
START_STATUTE43-1184. Credit
for contributions to school tuition organization; displaced students; students
with disabilities
A. Beginning
from and after June 30, 2009, a credit is allowed against the taxes imposed by
this title for the amount of voluntary cash contributions made by the taxpayer
during the taxable year to a school tuition organization that is certified
pursuant to chapter 15 of this title at the time of donation.
B. The
amount of the credit is the total amount of the taxpayer's contributions for
the taxable year under subsection A of this section and is preapproved by the
department of revenue pursuant to subsection D of this section.
C. The
department of revenue:
1. Shall
not allow tax credits under this section and section 20-224.07 that
exceed in the aggregate a combined total of $5,000,000 in any fiscal year
through fiscal year 2020-2021. Beginning in
for fiscal year 2021-2022, the aggregate dollar
amount of the tax credits allowed is $6,000,000 in any fiscal
year. For fiscal year 2022-2023, the aggregate
dollar amount of the tax credits allowed is $8,000,000. Beginning in fiscal
year 2023-2024 and each fiscal year thereafter, the aggregate dollar
amount of the tax credit cap from the previous fiscal year shall be increased
by Two percent.
2. Shall
preapprove tax credits under this section and section 20-224.07 subject
to subsection D of this section.
3. Shall
allow the tax credits under this section and section 20-224.07 on a first-come,
first-served basis.
D. For
the purposes of subsection C, paragraph 2 of this section, before making a
contribution to a school tuition organization, the taxpayer under this title or
title 20 must notify the school tuition organization of the total amount of
contributions that the taxpayer intends to make to the school tuition organization. Before
accepting the contribution, the school tuition organization shall request
preapproval from the department of revenue for the taxpayer's intended
contribution amount. The department of revenue shall preapprove or deny the
requested amount within twenty days after receiving the request from the school
tuition organization. If the department of revenue preapproves the
request, the school tuition organization shall immediately notify the taxpayer
that the requested amount was preapproved by the department of
revenue. In order to receive a tax credit under this subsection, the
taxpayer shall make the contribution to the school tuition organization within
twenty days after receiving notice from the school tuition organization that
the requested amount was preapproved. If the school tuition
organization does not receive the preapproved contribution from the taxpayer
within the required twenty days, the school tuition organization shall
immediately notify the department of revenue and the department shall no longer
include this preapproved contribution amount when calculating the limit
prescribed in subsection C, paragraph 1 of this section.
E. 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 taxes under
this title forward for not more than five consecutive taxable years' income tax
liability.
F. Co-owners
of a business, including corporate partners in a partnership and stockholders
of an S corporation as defined in section 1361 of the internal revenue code,
may each claim only the pro rata share of the credit allowed under this section
based on the ownership interest. The total of the credits allowed all such
owners may not exceed the amount that would have been allowed a sole owner.
G. The
credit allowed by this section is in lieu of any deduction pursuant to section
170 of the internal revenue code and taken for state tax purposes.
H. A
taxpayer shall not claim a credit under this section and also under section 43-1183
with respect to the same contribution.
I. The
tax credit is not allowed if the taxpayer designates the taxpayer's
contribution to the school tuition organization for the direct benefit of any
specific student.
J. The
department of revenue shall adopt rules necessary to administer this
section."END_STATUTE
Page 13,
between lines 3 and 4, insert:
"C. A school tuition organization may not issue an
educational scholarship or tuition grant that exceeds the amount of the
school's tuition."
Reletter to
conform
Page 21,
between lines 7 and 8, insert:
"Sec. 13. Applicability; use of revenues; reporting
A. The
repeal of section 43-1089.03, Arizona Revised Statutes, by this act,
applies to taxable years beginning from and after December 31, 2022.
B. Any
revenues from contributions made for the purposes of section 43-1089.03,
Arizona Revised Statutes, as repealed by this act, that have not been allocated
before January 1, 2023 are subject to the provisions of title 43, chapter 16,
Arizona Revised Statutes, as if the contributions were made pursuant to section
43-1089, Arizona Revised Statutes, as amended by this act.
C. Each
school tuition organization shall include in the annual report prepared
pursuant to section 43-1604, Arizona Revised Statutes, as amended by this
act, all of the information required by section 43-1604, Arizona Revised
Statutes, as amended by this act, for the revenues relating to the
contributions made for the purposes of section 43-1089.03, Arizona
Revised Statutes, as repealed by this act, that have not been allocated before
January 1, 2023.
Sec. 14. Saving clause
The repeal
of the income tax credit under section 43-1089.03, Arizona Revised
Statutes, as repealed by this act, does not affect the continuing validity of
any amount of the credit carried forward from previous taxable years for
application against subsequent tax liabilities as allowed by prior law."
Amend title to conform