Bill Text: AZ HB2457 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Rural STEM program; tax credits
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2017-05-11 - Chapter 302 [HB2457 Detail]
Download: Arizona-2017-HB2457-Introduced.html
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REFERENCE TITLE: rural STEM program; tax credits |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2457 |
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Introduced by Representative Nutt
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AN ACT
Amending title 15, chapter 2, article 2, Arizona Revised Statutes, by adding section 15-249.07; amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1075; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43-1163; relating to income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 15-249.07, to read:
15-249.07. Rural STEM program fund; definition
A. The rural STEM program fund is established consisting of private gifts, grants and contributions. Monies in the fund are continuously appropriated for the purposes of this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. The department of education shall administer the fund and may use not more than five percent of the monies deposited in the fund in a fiscal year for administrative purposes under this section. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are subject to state auditing procedures.
B. The department of education may establish a program for publicizing and soliciting contributions to the rural STEM program fund from the public. Private donations may qualify for the purpose of income tax credits under section 43-1075 or 43‑1163. The department of education may receive donations in any amount, but donations that qualify for tax credits are subject to the limits prescribed by section 43‑1075 or 43‑1163. The department of education shall provide the donor with a donation receipt that includes the donor's full name and address, a unique contribution identification number and the amount of the contribution. After the end of each calendar year, the department of education shall send to the department of revenue a record of all contributions received during the year.
C. The department of education shall establish a process that is consistent with the requirements of this section for distributing, accounting for and otherwise administering the use of the monies in the rural stem program fund. In February and August of each year, the department shall distribute monies from the fund to rural school districts to provide funding to teachers with a master's degree in a field of science, technology, mathematics or engineering.
D. On or before January 31 and July 31 of each year, school districts that receive monies from the rural STEM program fund shall provide updates on the outcomes achieved with these monies to the county school superintendent, to the department of education and to the legislature.
E. A teacher who is funded pursuant to this section:
1. Shall comply with all of the following requirements:
(a) Be the designated teacher in that teacher's school district for science, technology, engineering and mathematics.
(b) Establish a sustainable STEM program by Providing teaching techniques and other assistance to other teachers in that school district concerning science, technology, engineering and mathematics.
(c) Commit to a teaching contract with that teacher's school district for at least three consecutive school years.
(d) Demonstrate a notable increase within three years in science, technology, engineering and mathematics instruction and techniques provided by that school district.
2. Is subject to the following consequences for failure to perform and comply with the requirements of paragraph 1 of this subsection:
(a) Repayment to the rural stem program fund of monies paid to the teacher from the fund.
(b) Notwithstanding chapter 5 of this title, termination of employment.
F. For the purposes of this section, "rural school district" means a school district with at least one school that has a student count of three hundred or less and that is located in a county with a population of three hundred thousand persons or less.
Sec. 2. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43‑1079.01, 43‑1087, 43‑1088, 43-1089.04, 43‑1167.01 and 43‑1175.
2. For years ending in 1 and 6, sections 43‑1074.02, 43‑1083, 43‑1083.02, 43‑1085.01, 43‑1164.02, 43-1164.03 and 43‑1183.
3. For years ending in 2 and 7, sections 43‑1073, 43-1075, 43‑1079, 43‑1080, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43-1089.03, 43‑1090, 43-1163, 43‑1164, 43‑1167, 43‑1169, 43‑1176 and 43‑1181.
4. For years ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1076, 43‑1076.01, 43‑1081.01, 43‑1083.01, 43‑1083.04, 43‑1084, 43‑1162, 43‑1162.01, 43‑1164.01, 43‑1164.05, 43‑1170.01 and 43-1184 and, beginning in 2019, sections 43‑1083.03 and 43‑1164.04.
Sec. 3. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1075, to read:
43-1075. Credit for contributions to rural STEM program fund
A. Except as provided by subsection D of this section, for taxable years beginning from and after December 31, 2017, a credit is allowed against the taxes imposed by this title for cash contributions made by a taxpayer during the taxable year to the rural STEM program fund established by section 15-249.07. The amount of the credit is the lowest of the following amounts, as applicable:
1. the total amount of contributions to the rural STEM program fund by the taxpayer during the taxable year.
2. Five hundred dollars of contributions during the taxable year by a taxpayer filing as a single individual or a head of household.
3. One thousand dollars of contributions during the taxable year by a married couple filing a joint return.
4. The taxpayer's tax liability for the taxable year, exclusive of the credit under this section.
B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one‑half of the tax credit that would have been allowed on a joint return.
C. To claim the credit, the taxpayer must submit with the tax return the donation receipt issued by the department of education pursuant to section 15-249.07, subsection B.
D. The department shall allow credits under this section on a first‑come‑first‑served basis, but shall not allow credits that exceed an aggregate amount of fifty thousand dollars in any fiscal year.
E. Co-owners of a business, including partners in a partnership and shareholders 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. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
F. The credit allowed by this section is in lieu of a deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
Sec. 4. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1163, to read:
43-1163. Credit for contributions to rural STEM program fund
A. For taxable years beginning from and after December 31, 2017, a credit is allowed against the taxes imposed by this title in the amount of one dollar in cash contributions made by a taxpayer during the taxable year to the rural STEM program fund established by section 15-249.07.
B. To claim the credit, the taxpayer must submit with the tax return the donation receipt issued by the department of education pursuant to section 15-249.07, subsection B.
C. Co-owners of a business, including corporate partners in a partnership and shareholders 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. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
D. The credit allowed by this section is in lieu of a deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
Sec. 5. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts sections 43-1075 and 43-1163, Arizona Revised Statutes, as added by this act, to encourage private donations of monetary support for teachers of science, technology, engineering and mathematics courses in rural schools in this state.
