Arizona 57th Legislature - Second Regular Session Status: In Committee 1 R cosponsors

HB 4037 — individual income tax; credit; education

Last action — DPA

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 57th Legislature - Second Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

147 added · 130 removed

Plain-language change summary

The amendments to HB 4037 clarify the options available for taxpayers regarding income tax deductions and credits. Specifically, individuals can choose to take the standard deduction but are no longer allowed to increase their deductions for charitable contributions. Additionally, the list of income tax credits available for taxpayers has been updated to include a new section, which may provide more options for individuals seeking credits. These changes are important as they aim to simplify the tax filing process while potentially benefiting taxpayers through newly defined credits.

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REFERENCE TITLE:
Fifty-seventh Legislature Ways & Means Second Regular Session H.B.
individual income tax;
4037 PROPOSED HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B.
credit;
4037 (Reference to printed bill) Amendment instruction key:
education State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session HB 4037 Introduced by Representative Peña AN ACT AMENDING SECTIONS 43-222 AND 43-323, ARIZONA REVISED STATUTES;
[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or previously enacted session law.
AMENDING TITLE 43, CHAPTER 10, ARTICLE 5, ARIZONA REVISED STATUTES, BY ADDING SECTION 43-1073.02;
[Green underlining in brackets] indicates text added to new session law or text restoring existing law.
RELATING TO INCOME TAX CREDITS.
[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute or previously enacted session law.
(TEXT OF BILL BEGINS ON NEXT PAGE) - i - HB 4037 Be it enacted by the Legislature of the State of Arizona:
[Green strikeout in brackets] indicates text removed from existing statute, previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green strikeout in carets>> indicates a section removed from the bill.
The bill as proposed to be amended is reprinted as follows:
2.
House Amendments to H.B.
4037 2.
- 1 - HB 4037 5.
5.
Fiduciary returns, partnership returns, withholding returns and corporate returns shall be filed electronically for taxable years beginning from and after December 31, 2019, or when the department establishes an electronic filing program, whichever is later.
Fiduciary returns, partnership returns, withholding returns and corporate returns shall be filed electronically for taxable years -2- House Amendments to H.B.
4037 beginning from and after December 31, 2019, or when the department establishes an electronic filing program, whichever is later.
- 2 - HB 4037 Sec.
Sec.
FOR A QUALIFYING CHILD WHO WAS NOT ENROLLED IN A PUBLIC SCHOOL AND DID NOT PARTICIPATE IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402 DURING THE TAXABLE YEAR, EQUAL TO EIGHTY PERCENT OF THE AMOUNT OF THE BASE SUPPORT LEVEL AS DETERMINED BY SECTION 15-943 FOR THE QUALIFYING CHILD OF THE TAXPAYER.
FOR A QUALIFYING CHILD WHO WAS NOT ENROLLED IN A PUBLIC SCHOOL[,] [AND] DID NOT PARTICIPATE IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402 [AND DID NOT RECEIVE AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT FROM A SCHOOL TUITION ORGANIZATION PURSUANT TO CHAPTER 15 OR 16 OF THIS TITLE] DURING THE TAXABLE YEAR, EQUAL TO EIGHTY PERCENT OF THE AMOUNT OF THE BASE SUPPORT LEVEL AS DETERMINED BY SECTION 15-943 FOR THE QUALIFYING CHILD OF THE TAXPAYER.
FOR A QUALIFYING CHILD WHO WAS EITHER ENROLLED IN A PUBLIC SCHOOL OR PARTICIPATED IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402 FOR NOT MORE THAN FIFTY PERCENT OF THE INSTRUCTIONAL DAYS OF THE TAXABLE YEAR, EQUAL TO FORTY PERCENT OF THE AMOUNT OF THE BASE SUPPORT LEVEL AS DETERMINED BY SECTION 15-943 FOR THE QUALIFYING CHILD OF THE TAXPAYER.
FOR A QUALIFYING CHILD WHO WAS [EITHER] ENROLLED IN A PUBLIC SCHOOL[,] [OR] PARTICIPATED IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402 [OR RECEIVED AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT FROM A SCHOOL TUITION ORGANIZATION PURSUANT TO CHAPTER 15 OR 16 OF THIS TITLE] FOR NOT MORE THAN FIFTY PERCENT OF THE INSTRUCTIONAL DAYS OF THE TAXABLE YEAR, EQUAL TO FORTY PERCENT OF THE AMOUNT OF THE BASE SUPPORT LEVEL AS DETERMINED BY SECTION 15-943 FOR THE QUALIFYING CHILD OF THE TAXPAYER.
THE DEPARTMENT OF REVENUE SHALL ADOPT RULES AND PRESCRIBE FORMS TO ADMINISTER THIS SECTION AND MAY CONSULT WITH THE DEPARTMENT OF EDUCATION TO DETERMINE WHETHER A QUALIFYING CHILD OF A TAXPAYER WHO IS CLAIMING THE CREDIT UNDER THIS SECTION WAS ENROLLED IN A PUBLIC SCHOOL OR PARTICIPATED IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402.
THE DEPARTMENT OF REVENUE SHALL ADOPT RULES AND PRESCRIBE FORMS TO ADMINISTER THIS SECTION AND MAY CONSULT WITH THE DEPARTMENT OF EDUCATION TO DETERMINE WHETHER A QUALIFYING CHILD OF A TAXPAYER WHO IS CLAIMING THE CREDIT UNDER THIS SECTION WAS ENROLLED IN A PUBLIC SCHOOL OR -3- House Amendments to H.B.
4037 PARTICIPATED IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402.
Sec.
[4.
DID NOT RECEIVE AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT FROM A SCHOOL TUITION ORGANIZATION PURSUANT TO CHAPTER 15 OR 16 OF THIS TITLE FOR MORE THAN FIFTY PERCENT OF THE INSTRUCTIONAL DAYS DURING THE TAXABLE YEAR.] Sec.
- 3 -
Enroll and engross to conform Amend title to conform JUSTIN OLSON 4037OLSON.docx 02/13/2026 5:06 PM C:
ED 130QABMIG -4-
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How this bill changes current law

9 changes Share ↗

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends existing tax credit review schedules and introduces a new education opportunity tax credit for certain qualifying children.

  • 43-323

    43-1073, and 43-1073.01 → 43-1073.02

    The bill adds section 43-1073.02 to the statutes, which provides for an education opportunity tax credit.

  • 43-1073.02

    A CREDIT IS ALLOWED AGAINST THE TAXES IMPOSED BY THIS CHAPTER FOR EACH QUALIFYING CHILD OF A TAXPAYER AS PROVIDED BY THIS SECTION.

    This introduces a new tax credit specifically for qualifying children starting from 2025.

  • 43-1073.02

    AND DID NOT RECEIVE AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT FROM A SCHOOL TUITION ORGANIZATION PURSUANT TO CHAPTER 15 OR 16 OF THIS TITLE

    This change narrows the definition of eligibility for the tax credit by excluding children who have received certain educational scholarships.

  • 43-1073.02

    OR RECEIVED AN EDUCATIONAL SCHOLARSHIP OR TUITION GRANT FROM A SCHOOL TUITION ORGANIZATION PURSUANT TO CHAPTER 15 OR 16 OF THIS TITLE

    This further specifies the conditions under which a child qualifies for the tax credit, focusing on not receiving certain funding.

  • 43-1073.02

    IF THE ALLOWABLE AMOUNT UNDER SUBSECTION B OF THIS SECTION EXCEEDS THE TAXES OTHERWISE DUE UNDER THIS TITLE FOR THE TAXABLE YEAR, AFTER APPLYING ALL OTHER CREDITS TO WHICH THE CLAIMANT MAY BE ENTITLED AND AFTER ANY SETOFF UNDER SECTION 42-1122, THE EXCESS AMOUNT SHALL BE PAID IN THE SAME MANNER AS A REFUND UNDER SECTION 42-1118.

    This change allows for any excess amount of the tax credit to be refunded to the taxpayer.

  • 43-1073.02

    THE DEPARTMENT OF REVENUE SHALL ADOPT RULES AND PRESCRIBE FORMS TO ADMINISTER THIS SECTION AND MAY CONSULT WITH THE DEPARTMENT OF EDUCATION TO DETERMINE WHETHER A QUALIFYING CHILD OF A TAXPAYER WHO IS CLAIMING THE CREDIT UNDER THIS SECTION WAS ENROLLED IN A PUBLIC SCHOOL OR PARTICIPATED IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402.

    This mandates the Department of Revenue to create rules and forms to manage the new tax credit.

  • 43-1073.02

    FOR THE PURPOSES OF THIS SECTION, 'QUALIFYING CHILD' MEANS A CHILD WHO: 1. IS A DEPENDENT OF THE TAXPAYER AS DEFINED IN SECTION 152 OF THE INTERNAL REVENUE CODE.

    This establishes a formal definition for 'qualifying child' in the context of the new tax credit.

  • 43-1073.02

    2. IS ELIGIBLE TO ENROLL IN A PUBLIC SCHOOL IN THIS STATE BUT WAS NOT ENROLLED IN A PUBLIC SCHOOL IN THIS STATE FOR MORE THAN FIFTY PERCENT OF THE INSTRUCTIONAL DAYS DURING THE TAXABLE YEAR.

    This condition specifies eligibility based on school enrollment duration.

  • 43-1073.02

    3. DID NOT PARTICIPATE IN AN ARIZONA EMPOWERMENT SCHOLARSHIP ACCOUNT PURSUANT TO SECTION 15-2402 FOR MORE THAN FIFTY PERCENT OF THE INSTRUCTIONAL DAYS DURING THE TAXABLE YEAR.

    This condition further restricts eligibility based on participation in scholarship accounts.

Action History

  1. DPA

  2. House Second Reading

  3. House First Reading.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 92 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (92)

92 members have not signed on to this bill.

Show all 92 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Subjects

taxation education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 4037?
HB 4037 is sponsored by Michele Peña (Republican).
What is the current status of HB 4037?
This bill died with 57th Legislature - Second Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 4037?
Track HB 4037 free on One Click Politics — get push/email alerts when it moves.

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