The following information is pertinent only to Arizona school districts.
Tax Credit Uses:
Q: We have received donations for public school tax credit fees. What can our District use this money on?
A: Tax Credit Funds can be used for multiple purposes including:
- Extracurricular activities
- Character education programs, defined in A.R.S. § 15-719
- Standardized testing fees for college credit or readiness offered by a widely recognized and accepted educational testing organization
- Preparation courses and materials for standardized testing
- The career and technical education industry education industry certification assessment
- Cardiopulmonary resuscitation (CPR) training defined in A.R.S. § 15-718.01
From and after June 30, 2019 through June 30, 2022:
- Acquiring capital items as defined in the Uniform System of Financial Records, including those items listed in section A.R.S. § Title 15-903, subsection C paragraphs 2 through 8
- Community school meal programs
- Student consumable health care supplies
- Playground equipment and shade structures for playground equipment.
Q: Can tax credit donations be designated for a particular student?
A: Yes, Arizona Public School Tax Credit monies can be designated for an individual student. The Arizona Private School Tax Credit monies do have other restrictions.
Q: Can tax credit revenues be used for parent chaperone costs when connected to an approved extra-curricular activity?
A: Yes, the cost of a chaperone is considered part of the cost of the extra-curricular activity. Parents who volunteer to come and are not required chaperones would not be an allowable tax credit expense.
Q: Can we purchase supplies for a field trip with tax credit funds?
A: Yes, if the field trip is classified as an extra curricular activity, then the cost of supplies is considered part of the cost of the extra-curricular activity.
Q: Can designated funds become undesignated?
A: Yes, a program that has been discontinued or is not in use for two consecutive years can have the remaining designated tax credit funds be moved to undesignated category. The site council should approve this and will then determine the use of the undesignated tax credit monies.
Q: Can tax credit payments be refunded?
A: The tax payer receives a credit on their state taxes, therefore the monies should not be refunded by the District. This could result in the tax payer receiving a refund and a credit on their state income taxes.
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