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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
public school tax credit purposes
Purpose
Retroactive to July 1, 2024, extends, until June 30, 2029, the specified purposes for which a public school may use monies contributed for the purposes of the Public School Extracurricular Activity Fees Tax Credit.
Background
Statute allows for a credit against individual income tax liability for
fees paid or cash contributions made to a public school for: 1) standardized
testing for college credit or readiness; 2) the career and technical education
industry certification assessment; 3) preparation courses and materials for
standardized testing; 4) cardiopulmonary resuscitation training; 5)
extracurricular activities; and 6) character education programs. Laws 2019, Chapter
164 authorized additional purposes for contributions until June 30, 2022,
including: 1) the acquisition of specified capital items; 2) community school
meal programs; 3) student consumable health care supplies; and
4) playground equipment and shade structures for playground equipment. In 2021,
the Legislature extended the expiration date for the additional authorized
purposes until June 30, 2024 (Laws 2021, Ch. 412)
For the purposes of the Public School Extracurricular Activity Fees Tax
Credit, a
public school is a school that is a part of a school district, a career
technical education district or a charter school (A.R.S.
ยง 43-1089.01).
If extending the additional authorized contribution categories until June 30, 2029, results in a change to the amount of contributions, there may be a fiscal impact to the state General Fund.
Provisions
1. Extends, until June 30, 2029, the use of Public School Extracurricular Activity Fees Tax Credit contributions for the following authorized purposes:
a) the acquisition of outlined capital items;
b) community school meal programs;
c) student consumable health care supplies; and
d) playground equipment and shade structures for playground equipment.
2. Makes conforming changes.
3. Becomes effective on the general effective date, retroactive to July 1, 2024.
Amendments Adopted by Committee of the Whole
1. Authorizes, until June 30, 2029, rather than permanently, the use of Public School Extracurricular Activity Fees Tax Credit contributions for outlined purposes.
2. Makes conforming changes.
Senate Action
FIN 2/3/2025 DP 5-1-1
Prepared by Senate Research
February 27, 2025
MG/ci