The bill HB2909 proposes significant changes to Arizona's taxation laws as part of the fiscal year 2025 budget reconciliation. It caps the Credit for Corporate Contributions to School Tuition Organizations (STOs) for Low-Income Students at $135 million annually, expands scholarship eligibility for students in foster care, and imposes restrictions on STOs if the credit cap is deemed unenforceable. Additionally, it requires county boards to reduce school district property tax levies based on previous years and introduces new requirements for school districts impacted by a specific tax judgment.

Moreover, the bill modifies deadlines and tax credit limits, extending the certification process for third-party providers to 2028 and increasing the tax credit cap from $10 million to $135 million for the fiscal year 2024-2025 and beyond. It also adjusts the timeline for qualifying equipment purchases to December 31, 2026, and mandates that school districts affected by the tax judgment report cash deficits and inform taxpayers about property tax increases due to litigation costs. The bill is classified as an emergency measure and will take effect immediately, with a repeal date set for December 31, 2030.

Statutes affected:
Introduced Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901
House Engrossed Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901
Chaptered Version: 42-5040.01, 42-5061, 42-5159, 43-1183, 43-1504, 43-1603, 42-5156, 23-501, 36-1901, 28-5201, 42-5074, 42-6017, 88-525, 95-627, 99-661, 111-296, 28-5739, 28-8344, 42-5001, 42-5075, 42-5009, 28-2154, 28-2154.01, 42-5073, 3-311, 46-191, 36-551, 41-3201, 41-1514.02, 1-215, 49-426, 49-480, 41-1516, 44-1771, 42-5014, 42-5063, 45-604, 28-1171, 104-104, 41-1519, 44-1302, 42-5064, 42-5029, 42-5032.01, 28-4301, 41-1520, 20-224.06, 2024-2025, 2007-2008, 2020-2021, 2021-2022, 2022-2023, 2023-2024, 43-1184, 15-901