HB 2014 — STOs; scholarships; corporate tax credits

Fifty-sixthHouse LegislatureEngrossed WaysSTOs; & Means First Regular Session H.B.

2014scholarships; PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.

2014corporate (Referencetax tocredits printedState bill)of PageArizona 2,House strikeof linesRepresentatives 42Fifty-sixth throughLegislature 45First PageRegular 3,Session strikeHOUSE linesBILL 12014 throughAN 29ACT ReletterAMENDING toSECTIONS conform43-1184 StrikeAND lines43-1505, 35ARIZONA throughREVISED 42STATUTES; Page 4, strike lines 8 through 44 Page 5, strike lines 1 through 30 Renumber to conform Page 6, strike lines 38 through 45 Page 7, strike lines 1 through 25 Reletter to conform Strike lines 31 through 38 Page 9, strike lines 27 through 31, insert:

"1.RELATING TO SCHOOL TUITION ORGANIZATIONS.

Attended(TEXT aOF governmentalBILL primaryBEGINS orON secondaryNEXT schoolPAGE) as- ai full-time- student as defined in section 15-901 or attended a preschool program that offers services to students with disabilities at a governmental school for at least ninety days of the prior fiscal year and transferred from a governmental school to a qualified school." Renumber to conform House Amendments to H.B.

2014 PageBe 9,it lineenacted 32,by strikethe ",Legislature or"of insertthe "or"State Linesof 33Arizona: and 34, strike "OR GRADES ONE THROUGH TWELVE" Line 44, strike ", OR" insert a comma;

strikeSection "or1. 6" insert "or 6" Amend title to conform DAVID LIVINGSTON 2014LIVINGSTON.docx 02/09/2023 11:58 AM C:

EDSection -2-43-1184, Arizona Revised Statutes, is amended to read:

43-1184.

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 fiscal year 2021-2022, the aggregate dollar amount of the tax credits allowed IN EACH FISCAL YEAR is AS FOLLOWS:

(a) FOR FISCAL YEAR 2021-2022, $6,000,000 in any fiscal year.

(b) FOR FISCAL YEAR 2022-2023, $10,000,000.

(c) FOR FISCAL YEAR 2023-2024, $15,000,000.

(d) FOR FISCAL YEAR 2024-2025 AND EACH FISCAL YEAR THEREAFTER, $20,000,000.

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 - 1 - H.B.

2014 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.