Bill > HB4037

This bill establishes a new "Education Opportunity Tax Credit" for Arizona taxpayers, effective for taxable years beginning after December 31, 2025, which allows a credit against income taxes for each qualifying child. The credit amount varies: it's 80% of the base support level for a child not enrolled in public school or an Arizona Empowerment Scholarship Account (ESA), and 40% of the base support level for a child enrolled in public school or an ESA for no more than 50% of the instructional days. If the credit exceeds the tax liability, the excess will be refunded. The bill also updates the schedule for reviewing income tax credits to include this new credit and modifies rules regarding simplified tax return forms to allow taxpayers to claim this credit. A "qualifying child" is defined as a dependent who is eligible for public school but not enrolled for more than 50% of instructional days and who did not participate in an ESA for more than 50% of instructional days. The purpose of this credit is to expand educational choices for families.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85553